The Australian Taxation Office (ATO) issued a draft, on 10 May, 2024, for public consultation of the legislation A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Motor Vehicle Incentive Payment Made to Motor Vehicle Dealer) Determination 2024 (LI 2024/D6).

This legislation proposes to exempt, under specific conditions, the recipient of a motor vehicle supply from possessing a tax invoice before attributing the relevant input tax credit to a tax period.

If passed, the draft regulation will be applicable when a buyer acquires a motor vehicle from a dealer, and besides the payment made by the buyer, the dealer will also receive, or is entitled to receive, a third-party consideration in the form of an incentive payment.

The deadline for feedback on the consultation is set for 6 June, 2024.