Issue
Is the entity, a motor vehicle dealer, making a GST-free supply under section 38-510 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a car to the spouse of a person with a disability?
Decision
No, the entity is not making a GST-free supply under section 38-510 of the GST Act when it supplies a car to the spouse of a person with a disability. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a motor vehicle dealer. The entity supplies a car to the spouse of a person with a disability.
The spouse of the person with the disability does not hold a disability certificate, issued by the relevant authority.
The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Under subsection 38-510(1) of the GST Act, a supply of a car to an individual is GST-free where the individual: • has a current disability certificate issued by: • the person holding the position of 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 for the purposes of this section; • 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 • intends to use the car in his or her personal transportation to or from gainful employment during all of the Subdivision 38-P period.
As the spouse of the person with a disability does not hold a current disability certificate, issued by the relevant body, the requirements of subsection 38-510(1) are not satisfied.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies a car to the spouse of a person with a disability.