C38/1996 SALES TAX EXEMPTION FOR MOTOR VEHICLES AND SPARE PARTS

DATE OF ISSUE:  14 JUNE 1996

SALES TAX EXEMPTION FOR MOTOR VEHICLES AND SPARE PARTS

Purpose

The purpose of this Departmental Instruction is to remind State offices of procedures that should be followed nationally to ensure uniformity in processing enquiries for Sales Tax exemption on motor vehicles and spare parts.  This Departmental Instruction supersedes B24/91.

Background

2.A person, who as a result of service:

(i)has lost a leg or both arms; or

(ii)has had a leg, or both arms, rendered permanently and completely useless; or

(iii)is a veteran to whom section 24 of the VEA applies and receives a pension under Part II of the VEA

is entitled, under Item 96 in Schedule I of the Sales Tax (Exemptions and Classifications) Act 1992, to exemption from Sales Tax in respect of new vehicles and spare parts for a motor vehicle owned by him or her and used for personal transportation.

3.The new vehicle does not have to be registered in the eligible person's name.  There is no limit to the number of new vehicles the eligible person can claim Sales Tax exemption on as long as the vehicle on which the exemption is sought is used for personal transportation of that person.

4.Spare parts do not include accessories

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Procedure

5.DVA acts only as an agent for the Australian Taxation Office (ATO) and the Department's role is to ensure that the veteran requesting authorisation is eligible for Sales Tax exemption.  It is the responsibility of the ATO to follow up on any discrepancies that may occur.

6.When authorisation is sought for Sales Tax exemption the eligibility of the veteran is confirmed prior to the provision of form D3055.  There is no limit to the amount of forms that can be provided to an eligible person.  If the veteran is personally available the declaration is to be completed prior to authorisation.  If the form is posted authorisation is to be given without the need for the veteran to complete the details.  Details of authorised Sales Tax exemptions are to be retained.

7.The form is then lodged with the car/spare parts dealer  The bottom portion of the form is returned to DVA by the car/spare parts dealer.

8.In an emergency situation the form D3055 may be faxed by DVA to the car/spare parts dealer if the dealer agrees to this method.  In circumstances that warrant this action the original form must follow by post.  The ATO does not accept faxed or photocopied versions and will only process an original form.  The onus is on the car/spare parts dealer to forward the original application to the Australian Taxation Office.  This advice must always be given to the dealer and veteran.

9.No retrospective exemptions can be made.  In order for the veteran to receive exemption the completed form must be lodged with the car/spare parts dealer prior any monetary transaction.  The discounted amount is to be claimed back by the car/spare parts dealer and the veteran has no further involvement.

Future enquiries

10.Please contact Julie Bradley (06) 2894745 or Jeff Kelly (06) 289 6569 if you have any enquiries on the processing of an application for Sales Tax exemption.

11.If you have any enquiries regarding administering Item 96 in Schedule I of the Sales Tax (Exemptions and Classifications) Act 1992 the Australian Taxation Office can be contacted directly.

W R MAXWELL

DIVISION HEAD

COMPENSATION