Reference the GST free purchase of vehicle and vehicle parts, the following is a definitive guide on how to gain this exemption. After phoning the ATO for confirmation on this, the following outlines the actual requirements to purchase a vehicle or vehicle parts GST free.

All the details are outlined on the ATO website, cars and the GST, which you need to read first.

If your the holder of a TPI Gold Card, then you do not need to apply for the disability certificate from the HSA, however; if your the holder of a white card, or gold card that is not embossed with TPI, then you do need to apply through DVA, and gain a letter of temporary / permanent disability.

Now, after speaking with the ATO, it is ascertained that you may need to fill out the relevant form to provide the supplier of the part, for GST exemption, as they need to maintain paperwork to show the ATO. Whilst the ATO said it is up to the supplier of the vehicle / vehicle part, the form is provided here for you in case. Basically, the supplier could simply want to photocopy your gold card, or write your QSM number of the card down for their records, or they will want the declaration for their records. I know I don't want to be giving photocopies of my gold card out, so I will be simply giving them the form.

Take note of what you can and can't get GST exempt, in that:

• The value of the car up to the car depreciation limit ($55,134) will be GST-free.
• Car parts include items such as batteries, tyres, oil filters, petrol filters, fuel pumps, spark plugs, water pumps, radiator hoses, windscreens, and head and tail light globes.
• However, items such as oils, greases, paints, hydraulic fluids, radiator additives, refrigerant gases, petrol additives, brake fluids and petrol are not car parts and, therefore, GST will be payable on them.
• Labour for fitting parts is also not GST exempt.

Basically, it is the car itself as a whole, or parts for the car that actually form part of the car, not items that are not strictly fitted to the car as such. From what I take from my conversation with the ATO, if you where to have your engine rebuilt by a mechanic, then the cost of all the parts required would be GST exempt, except the parts not actually "fitted", such as oils and fluids, and you would also have to pay the GST on the labour to rebuild it and reinstall, including such labour as regrinding heads and so forth. Overall though, you would save a substantial amount of money in my honest opinion.

I think the big giveaway is this, if the part actually "fits" to the car, then it is exempt, compared to if the item is "loose", being oils, additives, air cond gas, etc etc. I was confusing myself earlier thinking about consumables, but it is not that, as a spark plug is consumable, but it is GST exempt, as it "fits" to the car, and does not sit loosely.

I hope that clarifies this for some people... as it took a phone call to the ATO for me to fully understand it.