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:

Where the Commission subsidises the purchase of a motor vehicle for a person for the first time, that vehicle is known as an “initial motor vehicle”. The initial vehicle may be a new vehicle, or a second-hand vehicle.

Eligibility for an initial vehicle

The MVCS legislative instrument specifies that an eligible person seeking compensation for an initial vehicle under the MVCS must:

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.

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

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

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

If the MRCC subsidises the purchase of a motor vehicle for a person, the person is taken to be the legal owner of the motor vehicle.

However, the Commonwealth has a chattel mortgage interest in the motor vehicle to the extent of the amount of the subsidy. The conditions attached to a chattel mortgage include the following:

The motor vehicle cannot be: