Section 3.3 of the Motor Vehicle Compensation Scheme (MVCS) Legislative Instrument enables the Commission to consider provision of compensation for the purchase of an initial vehicle. Where the Commission provides compensation (a subsidy) for the purchase of a motor vehicle for a person for the first time, that vehicle is known as an “initial motor vehicle”. An initial MVCS vehicle may be new or a second-hand.

If an eligible client’s current vehicle is not capable of having necessary driving devices fitted, or modifications made to it, then DVA can only provide compensation for the cost of the OT recommended modification or driving device. Compensation coverage does not extend to the cost of the vehicle itself. A client may purchase a suitable vehicle at their own cost and be compensated under MVCS for the costs of the approved driving devices or modifications.

An eligible person is entitled to motor vehicle modifications if the delegate is satisfied that:

The delegate may require a person who is provided with any compensation under the MVCS to give a written undertaking to comply with any conditions set out in the MVCS, although the conditions set out in the MVCS must be complied with regardless of whether or not a written undertaking is given.

For information in relation to Delegations, refer to CLIK section 2.9 Delegations.

An eligible person under the MVCS is a person who has:

Section 38-505 of the A New Tax System (Goods and Services Tax) Act 1999 (ANTS Act) provides that a Goods and Services Tax (GST) exemption applies to the supply of a motor vehicle (or parts to modify a motor vehicle) to an individual who:

Stamp duty is a payment that must be made to state and territory governments at the time of registration of any new or used vehicle in Australia. The actual amount of stamp duty that must be paid varies between states/territories but is always calculated based on the GST inclusive cost of the vehicle.

If there is a breach of any of the MVCS requirements, the delegate may notify the person in writing that: