To be able to claim tax concessions when buying, leasing or modifying a car you must meet the eligibility criteria.
There are specific documents required to prove you are entitled. Depending on your situation, you may need to get a medical certificate from Medibank Health Solutions. This is a five-step process which involves completing an Application for medical evaluation to obtain a car or car parts GST-free.
There are certain tax exemptions and concessions if anyone buy luxury car. If a person is disability he/she might be entitled for concession. There are specific rules:
To claim for tax concession, when leasing, buying car, you must meet the criteria precise by ATO to qualify for concessions on car tax. There are specific documents necessary to prove the eligibility specifically for disability might require to obtain medical certificate from Medibank Health Solutions.
An individual can claim for purchase of GST –free car if an qualified person with disability and medical prove for that. If he/she satisfy the criteria of eligibility, then can complete statement for exemption of GST-free car or car parts.
For disability, certain medical aids and appliances are exempted for use in car such as wheelchair ramps, wheel chair lifting devices and special seats for disable persons. Only these specific devices are designed for disable persons.
Purchasing a car GST-free
A veteran or person with a disability can buy a car GST-free if they are an eligible veteran or eligible person with a disability.
An eligible veteran is someone that satisfies both of the following:
- you are a veteran with a disability
- you intend to use the car either
- for your personal transportation for two years, or
- to 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 SolutionsExternal Link (MHS), part of the Health Services Australia Group
- certifies you have lost the use of one or more limbs to the degree that you are not capable 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 kilometers from the date you purchase it.
Exemptions and Concessions for Luxury cars:
Luxury cars have GST inclusive above the value of luxury car threshold. For disable persons there are some exemptions if he/she is involved to buy car and modify as accordingly for special seat and wheelchair ramp. If the value of the car exceeds luxury car tax threshold then the individual would be liable for both GST and Luxury tax car.