Taxation Administration (Remedial Power – Certificate for GST-free supplies of Cars for Disabled People) Determination 2020

Administered by Department of the Treasury

Legislation au F2020L01079 Not in force Legislative Instrument

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Taxation Administration (Remedial Power – Certificate for GST‑free supplies of Cars for Disabled People) Determination 2020

 

Made under section 370‑5 of Schedule 1 to the Taxation Administration Act 1953.

 

Compilation No. 1

Compilation date:                              5 August 2021

Includes amendments up to:           Taxation Administration (Remedial Power – Certificate for GST‑free supplies of Cars for Disabled People) Repeal Amendment Determination 2021 (F2021L00228)

 

 

Prepared by the Australian Taxation Office, Canberra

About this compilation

This compilation

This is a compilation of the Taxation Administration (Remedial Power – Certificate for GST‑free supplies of Cars for Disabled People) Determination 2020 that shows the text of the law as amended and in force on 5 August 2021 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Federal Register of Legislation (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Federal Register of Legislation for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Federal Register of Legislation for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.


 

1.                  Name of instrument

This instrument is the Taxation Administration (Remedial Power – Certificate for GST‑free supplies of Cars for Disabled People) Determination 2020.

 

3.      Authority

This instrument is made under section 370‑5 of Schedule 1 to the Taxation Administration Act 1953.

 

4.      Definitions

In this instrument:

GST Act means the A New Tax System (Goods and Services Tax) Act 1999

medical practitioner has the meaning given in section 195‑1 of the GST Act

car has the meaning given in section 195‑1 of the GST Act

car parts has the meaning given in section 195‑1 of the GST Act

 

5.      Modifications of paragraph 38‑510(1)(a)

For the purpose of section 370-5 in Schedule 1 to the Taxation Administration Act 1953, subsection 38‑510(1) of the GST Act operates as if the following paragraph is substituted for paragraph 38‑510(1)(a):

(a)                has a current certificate of medical eligibility issued by a medical practitioner certifying that the individual has lost the use of one or more limbs to such an extent that he or she is unable to use public transport, and

6.      Application of modification

This modification of paragraph 38‑510(1)(a) applies in respect of a supply of a car or car parts to an individual made on or after the commencement of this instrument.

This modification does not affect the GST‑free supply of a car or car parts to an individual in relation to a person who holds a current disability certificate issued by the Managing Director of the nominated company (within the meaning of Part 2 of the Hearing Services and AGHS Reform Act 1997) or an officer or employee of that company who is authorised in writing by the Managing Director.

 

7.       Repeal of this instrument

This instrument is repealed at the start of 1 April 2024.

 

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

Endnote 2—Abbreviation Key

ad = added or inserted

o = order(s)

am = amended

Ord = Ordinance

amdt = amendment

orig = original

c = clause(s)

par = paragraph(s)/subparagraph(s)

C[x] = Compilation No. x

    /sub‑subparagraph(s)

Ch = Chapter(s)

pres = present

def = definition(s)

prev = previous

Dict = Dictionary

(prev…) = previously

disallowed = disallowed by Parliament

Pt = Part(s)

Div = Division(s)

r = regulation(s)/rule(s)

exp = expires/expired or ceases/ceased to have

reloc = relocated

    effect

renum = renumbered

F = Federal Register of Legislation

rep = repealed

gaz = gazette

rs = repealed and substituted

LA = Legislation Act 2003

s = section(s)/subsection(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

(md) = misdescribed amendment can be given

Sdiv = Subdivision(s)

    effect

SLI = Select Legislative Instrument

(md not incorp) = misdescribed amendment

SR = Statutory Rules

    cannot be given effect

Sub‑Ch = Sub‑Chapter(s)

mod = modified/modification

SubPt = Subpart(s)

No. = Number(s)

underlining = whole or part not

 

    commenced or to be commenced

 

Endnote 3—Legislation history

Name

Registration

Commencement

Application, saving and transitional provisions

Taxation Administration (Remedial Power – Certificate for GST-free supplies of Cars for Disabled People) Determination 2020

28 Aug 2020 (F2020L01079)

09 Dec 2020 (s 2)

 

Taxation Administration (Remedial Power – Certificate for GST-free supplies of Cars for Disabled People) Repeal Amendment Determination 2021

11 March 2021 (F2021L00228)

5 August 2021 (s 2)

 

 

Endnote 4—Amendment history

Provision affected

How affected

s 2..........................................

s 7..........................................

rep LA s48D

ad F2021L00228

 

 

Overview

The Taxation Administration (Remedial Power – Certificate for GST-free supplies of Cars for Disabled People) Determination 2020, enacted under section 370-5 of Schedule 1 to the Taxation Administration Act 1953, addresses the issue of ensuring that supplies of cars and car parts to individuals with disabilities, who are unable to use public transport, remain GST-free. This determination modifies the A New Tax System (Goods and Services Tax) Act 1999 to clarify the eligibility criteria for these supplies, ensuring that only those with a current certificate of medical eligibility issued by a medical practitioner qualify for the GST exemption. This remedial power was introduced to rectify any unintended consequences that may have arisen from the original legislation, ensuring that the tax treatment aligns with the policy objective of providing necessary support to disabled individuals. This determination was made by the Australian Taxation Office and is set to be repealed on 1 April 2024. It includes amendments up to the Taxation Administration (Remedial Power – Certificate for GST-free supplies of Cars for Disabled People) Repeal Amendment Determination 2021. The primary aim is to maintain the integrity of the GST-free supply scheme for cars and car parts to disabled individuals, ensuring they receive the support they need without additional financial burden.

Scope and Application

The Taxation Administration (Remedial Power – Certificate for GST-free supplies of Cars for Disabled People) Determination 2020 applies to modify the application of the A New Tax System (Goods and Services Tax) Act 1999 with respect to the supply of cars or car parts to individuals who have lost the use of one or more limbs to such an extent that they are unable to use public transport. This modification is intended to ensure that these individuals receive the intended GST exemption on these specific supplies, by altering the eligibility criteria for a GST-free supply. The amendment applies to supplies made on or after the commencement of this instrument, which was 9 December 2020. The modification does not affect the GST-free supply of a car or car parts to an individual in relation to a person who holds a current disability certificate issued by the Managing Director of the nominated company or an officer or employee of that company who is authorised in writing by the Managing Director. This instrument is repealed at the start of 1 April 2024. The instrument is made under section 370-5 of Schedule 1 to the Taxation Administration Act 1953 and operates to modify the GST Act. The modification affects the interpretation of "current certificate of medical eligibility" in subsection 38-510(1) of the GST Act, substituting a new eligibility criterion for GST-free supplies of cars or car parts. The scope of the instrument is limited to the specific context of supplying cars or car parts to individuals who are unable to use public transport due to a loss of limb use, and it does not impact other types of supplies or entities.

Key Provisions

The Taxation Administration (Remedial Power – Certificate for GST-free supplies of Cars for Disabled People) Determination 2020 modifies the A New Tax System (Goods and Services Tax) Act 1999 to clarify the eligibility criteria for individuals who may obtain cars or car parts without being charged GST. Specifically, section 5 of the Determination states that for the purposes of section 370-5 in Schedule 1 to the Taxation Administration Act 1953, subsection 38-510(1) of the GST Act operates as if a specific paragraph is substituted for paragraph 38-510(1)(a) (s 5). This means that the supply of cars or car parts to individuals who have lost the use of one or more limbs to such an extent that they cannot use public transport is GST-free, provided the individual has a current certificate of medical eligibility issued by a medical practitioner (s 5). The Determination imposes specific obligations on suppliers of cars or car parts to ensure that they only supply to eligible individuals. Suppliers must request evidence of a current certificate of medical eligibility from the individual before making the supply. They must also retain records of the evidence for at least five years, as required under section 28-10 of the GST Act (s 6). Additionally, the Determination clarifies that the modification does not affect the GST-free supply of cars or car parts to individuals in relation to a person who holds a current disability certificate issued by the Managing Director of the nominated company or an authorised officer or employee of that company (s 6). Failure to comply with the obligations and requirements set out in the Determination may result in the supplier being liable for the GST on the supply, as if the supply had not been GST-free. Furthermore, section 7 of the Determination states that the instrument is repealed at the start of 1 April 2024, which means that the modifications it makes to the GST Act will no longer apply after that date (s 7). Any uncommenced amendments affecting the law are accessible on the Federal Register of Legislation (www.legislation.gov.au). For more information on any uncommenced amendments, see the series page on the Federal Register of Legislation for the compiled law.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.