Purchasing a car GST free

Funding and prosthetics | Sep 22nd

A veteran or person with a disability can purchase a car GST-free if they are an eligible veteran or eligible person with a disability.

An eligible veteran is someone that satisfies the following:

  • You are a veteran with a disability,
  • You intend to use the car either for your personal transportation for two years, or,
  • Will travel 40,000 kilometres from the date you purchase it.

An eligible person with a disability is someone that satisfies all of the following: You have a disability and have a current disability certificate that: 

  • Is issued by Medibank Health Solutions External Link (MHS), part of the Health Services Australia Group,
  • Certifies you have lost the use of one or more limbs to the extent that you are unable to use public transport, and,
  • You intend to use the car to travel to or from gainful employment for either two years, or 40,000 kilometres from the date of purchase.

As an eligible veteran or eligible person with a disability, you are gainfully employed for GST purposes if both of the following apply: 

  • you regularly undertake paid work or work in your own business,
  • the payment you receive is appropriate for your age, experience and capabilities.

You cannot purchase a car GST-free if any of the following applies: 

  • you are not an eligible veteran or eligible person with a disability
  • you are not gainfully employed
  • you purchase it jointly with another person, such as a spouse or carer
  • you want to use the car to look for gainful employment
  • you work as a volunteer only
  • you are a student only. 

If you are eligible to purchase a car GST-free and you decide to purchase a vehicle that is not a car (for example, a truck or a van), then the vehicle is not GST-free.


Content Image

For more information go to the Australian Tax Office website or call 13 28 61.

Australian Tax Office www.ato.gov.au/Business/Bus/GST-and-LCT-on-cars-you-buy---people-with-disabilities/?page=1 or contact the Australian Tax Office on: 13 28 61