Motorcycle GST rebate scheme

Some veterans can claim a rebate on Goods and Services Tax (GST) when buying a motorcycle or motorcycle parts. Find out who can get it and how to apply.

What is a motorcycle

For the purpose of this scheme, ‘motorcycle’ means a motor vehicle with no more than 4 wheels that is steered using handlebars.

Who can claim the GST rebate

You need to:

• have served before 1 July 2004
• be covered by the Veterans’ Entitlements Act 1986 (VEA).

Find out who the VEA covers.

One of the following also needs to apply:

• You receive a Disability Compensation Payment at the special rate.
• You have lost a leg or both arms from a service-related injury or condition.
• You are permanently and completely unable to use a leg or both arms because of a service-related injury or condition.

If you pay GST when you buy the motorcycle or parts, we pay the rebate to you. If the seller covers the GST, we pay the rebate to them.

You need to have bought the motorcycle or parts after 1 July 2000.

How much you can get

The rebate amount is usually one eleventh of the market value of the motorcycle or motorcycle part. The market value includes GST.

For the 1 July 2024 - 30 June 2025 financial year, the maximum rebate you can get is $6,192. This is one eleventh of the car limit set by the Australian Taxation Office (ATO).

When you can claim the rebate on a motorcycle

If GST needs to be paid on a motorcycle that you buy for your own personal transport, you can claim the rebate. You can ride the motorcycle as a driver or a passenger.

There is a similar scheme for cars. The ATO runs a scheme for veterans called the Supply of cars or car parts GST-free. It has similar rules to the motorcycle GST rebate scheme about who can claim.

You can only use one scheme at a time. This means you can be exempt from paying GST on either a car or a motorcycle, but not both at once.

If you’ve used either of these schemes already and you want to buy a motorcycle with the GST rebate, you need to wait until either:

• 2 years have passed since you last bought a car or motorcycle through one of these schemes
• you have travelled more than 40,000 km with your last car or motorcycle
• your last car or motorcycle is no longer fit for its ordinary use and it is not insured for its replacement value
• we are satisfied that you need to buy a motorcycle because of special circumstances.

If you buy a car GST free and then claim the rebate on a motorcycle before one of those things has happened, you will need to pay the rebate back.

When you can claim the rebate on motorcycle parts

If you’ve bought a motorcycle and claimed the GST rebate, you can also claim the rebate on parts for that motorcycle. The original part must be either:

• no longer fit for purpose because of wear and tear
• destroyed, damaged or stolen and not insured for its replacement value.

The rebate only applies if GST is payable on the new part.

How to apply

You can complete this form to apply.

Send your completed form with a copy of your tax invoice to:

DVA Offsetting Team

GPO Box 9998

BRISBANE QLD 4001

You can also email it to compensation.claims [at] dva.gov.au (compensation[dot]claims[at]dva[dot]gov[dot]au), or take it in to your local VAN office.

We will let you know the outcome in writing. You can contact us if you have any questions.