B24/1991 SALES TAX EXEMPTION

DATE OF ISSUE: 31 May 1991

SALES TAX EXEMPTION

BACKGROUND

Changes made by the Australian Taxation Office (ATO) to the procedures they use regarding the provision of Sales Tax Exemption on the purchase of new vehicles and spare parts have required changes to be made to the application forms and to the procedures used by this Department when processing the applications. Essentially, the change is that it is no longer necessary to obtain prior approval from the ATO for Sales Tax Exemption.

REVISED PROCEDURES TO BE ADOPTED

2.The " Application for Sales Tax Exemption", form D3055, is attached.  It is a double-sided form that replaces and combines the old forms D3022, D3023, D3024 & D3025).

3.If the applicant is eligible, action should be taken to tick the box on the form D3055 under which eligibility is conceded.  The form D3055 should then be stamped and signed in the appropriate space. The form should then be forwarded or given to the applicant so that it can be taken to the firm supplying the vehicle or spare parts, where both sides are to be completed in full and signed.

4.The form D3055 is divided into two sections. The top section is to be retained by the firm supplying the vehicle or spare parts.  It is to be held by the firm as evidence that the vehicle or parts has been sold free of tax and submitted to the ATO at taxation time with the rest of the documention that makes up the return.  This is the important change in the procedures.  Previously, the form was immediately forwarded to the ATO rather than being held by the firm.

5.As stipulated on the bottom section of the form, one side is to be completed by the applicant and the other side is to be completed by the dealer or firm supplying the vehicle or parts.  After completion, the bottom section is to be returned to this Department as confirmation of the applicant's receipt of an exemption and to allow updating of DVA records.

6.Detailed instructions on the procedures to be adopted once the bottom section of the form has been returned have not been provided.  The feasibility of recording the required information on either CMS or PARS has been examined.  However, this is not considered appropriate due to the small number of veterans in receipt of sales tax exemption and the volume of information to be recorded. On this basis, procedures should be determined locally so as the information contained on the bottom section of the form is readily available on request.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS