| Revenue Ruling Public Ruling
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| Chapter 8 of the Duties Act 2001 ("the Act") provides for the imposition of duty on an application to register a motor vehicle under the Vehicle and Traffic Act 1999. Duty on an application to register a motor vehicle is calculated by reference to the dutiable value. The dutiable value of a new motor vehicle is defined at section 198(1A) of the Act as the consideration in money or money's worth given for the acquisition of the motor vehicle, if the Commissioner is satisfied that the consideration is adequate in relation to the value of that motor vehicle. Section 197 of the Act provides the rates of duty applied to an application to register a motor vehicle. Section 197(3A) of the Act provides a separate rate of duty for a new motor vehicle for which a manufacturer's fleet discount has been provided. This Ruling explains the definition of a manufacturer's fleet discount and provides dealers in new motor vehicles certainty when calculating the dutiable value of a new motor vehicle. It replaces Revenue Ruling No PUB-DT-2002-2 which issued on 15 February 2002. Ruling Discounts provided on production of an ABN: Discounts are provided to persons by vehicle manufacturers on the criterion that they hold an Australian Business Number (ABN). The ABN discount is made available to the general public by manufacturers on the basis they meet the criterion of holding a current ABN. Accordingly, as the ABN discount is available to the general public it does not meet the definition of a "Manufacturer's Fleet Discount" as defined in section 197 of the Act and the normal rate of duty (not the fleet discount rate of 3.5%) applies to motor vehicles purchased subject only to an ABN/ "business owner" discount. It is understood that some manufacturers require dealers to obtain a client's ABN as part of the process of granting a fleet discount to members of peak bodies (for example, the National Farmer's Federation or the Master Builders Association). In these instances, it is considered that the manufacturer's fleet discount has been provided on the basis of the arrangement between the manufacturer and the peak body, not merely because the purchaser is able to provide an ABN. Accordingly, the fleet discount rate of 3.5% applies. Vehicles purchased by Government A vehicle purchased pursuant to a Government contract price meets the definition of a manufacturer's fleet discount and accordingly, attracts the fleet discount rate of 3.5% (unless exempt from duty). Manufacturer discounts offered to staff On occasions, manufacturers offer discounts to staff of dealerships on various makes and models of motor vehicles. A vehicle purchased pursuant to such a discount that is not available to the general public is considered by the Commissioner to meet the definition of a manufacturers fleet discount and accordingly, attracts the fleet discount rate of 3.5%. Note, the fleet discount rate does not apply in the event that a staff discount is made available to staff by a dealer rather than the manufacturer. General The definition of a manufacturer’s fleet discount refers to a discount “that is given to the purchaser of the vehicle by the manufacturer (emphasis added) of the vehicle”. It is understood that in the majority of cases, the eligibility of a purchaser to qualify for a fleet discount is assessed by the motor vehicle dealer, the reduced price agreed with the purchaser, and a claim lodged by the motor vehicle dealer with the manufacturer for reimbursement. It is also understood that the amount of fleet discount reimbursed to the motor vehicle dealer may be less than the discount provided to the purchaser. In these instances it is considered that the fleet discount has been provided to the purchaser of the vehicle by the manufacturer. This is despite the discount being calculated by motor vehicle dealers with reimbursement claimed from manufacturers at a later time and also, the fact that the amount reimbursed by the manufacturer to the dealer may be less than the discount provided to the purchaser. The fleet discount rate of duty (3.5%) applies in these circumstances. Note, as provided in Public Ruling PUB-DT-2001-4, where the consideration for the purchase of a motor vehicle includes a payment by the purchaser to the vendor amounting to the equivalent of GST payable by the Vendor, the dutiable value is the GST inclusive price. Enquiries in relation to this Revenue Ruling should be directed to the Revenue Advice and Audit Section on telephone (03) 6233 5437 or e-mail at audithelp@treasury.tas.gov.au. Copies of this ruling may be obtained from the State Revenue Office Web site at www.treasury.tas.gov.au/tax and follow the "Revenue Rulings" link. All rulings must be read subject to Revenue Ruling PUB-GEN-2001-1 Peter Coe COMMISSIONER OF STATE REVENUE |
