Veterans’ Entitlements (Special Assistance—Motorcycle Purchase) Instrument 2025

Eligible veteran. The person must be a veteran who either receives a pension under Part II of the VEA and to whom section 24 of the Act applies (that is, the pension is for total and permanent incapacity), or who has lost a leg or both arms because of a war‑caused or defence‑caused injury or disease, or has had a leg or both arms rendered permanently and completely useless because of such an injury or disease (s 3(a)). The definition of “veteran” in the Act includes members of the Forces and members of a Peacekeeping Force (s 3 Note).

Motorcycle. Defined as a motor vehicle with not more than four wheels that is steered by means of handle bars (s 2). This excludes cars, quadricycles with steering wheels, and other vehicles not meeting the handle‑bar test.

Motorcycle part. A standard replacement part made specifically for the motorcycle. It expressly excludes liquids and gases used in or on the motorcycle, such as brake fluids, oils, petrol, paint, and refrigerant gases (s 2 definition of “part”, including examples). The part must be purchased to replace an existing part that is no longer fit for purpose due to wear and tear, or that was destroyed, damaged or stolen and not insured for its replacement value (s 5(b)).

Motorcycle benefit. The amount calculated under s 11(1): 1/11 of the GST‑inclusive purchase price if that price does not exceed the car limit for the financial year; if it exceeds the car limit, 1/11 of the car limit. The calculation uses the “GST inclusive purchase price”, which is the actual amount paid without discounting for GST, and excluding any amount paid for modifications made solely to adapt the motorcycle or part for driving or transporting a person (s 11(2)).

Two‑year gap rule. A person cannot receive a motorcycle benefit if, in the two years before the purchase, they received a benefit for another motorcycle OR purchased a GST‑free car or vehicle (s 4(1)(c)). However, this rule does not apply if the earlier motorcycle or car/vehicle has been used for more than 40,000 kilometres, is no longer reasonably capable of ordinary use and was not insured for replacement value, or if the Commission is satisfied there are special circumstances (s 4(2),(3)). The instrument gives the example of theft and non‑recovery if uninsured to illustrate special circumstances.

Car limit. Defined by reference to subsection 40‑230(3) of the Income Tax Assessment Act 1997, which sets the threshold for the luxury car tax depreciation limit. This limit is indexed annually.

Application. Must be in writing, in an approved form if one exists, and accompanied by a tax invoice or recipient‑created tax invoice that complies with the A New Tax System (Goods and Services Tax) Act 1999 (s 6(2)). The application must be forwarded to or delivered at an office of the Department of Veterans’ Affairs in Australia, and the applicant must be in Australia on that day (s 6(5)).

Withdrawal. An applicant may withdraw an undecided application orally or in writing (s 7(1)). If an application was made on behalf of a veteran, only the veteran (or a person with written authorisation) may withdraw it (s 7(4)). A withdrawn application is taken never to have been made (s 7(2)).

Primary class: eligible veterans. The instrument applies only to veterans who fall into one of the narrow categories in s 3(a). That means a veteran receiving a Part II pension under s 24 of the Act (total and permanent incapacity), or a veteran who has lost a leg or both arms, or had a leg or both arms rendered permanently and completely useless, due to a war‑caused or defence‑caused injury or disease. This is a small subset even of the disabled veteran population. The veteran must also purchase the motorcycle for personal transportation and comply with the two‑year gap rule. The instrument does not apply to veterans with other disabilities, such as loss of a foot, hand, or partial loss of function.

Family members and representatives. A person may apply on behalf of a veteran (s 6(4)). That person could be a family member, guardian, or trustee. They must be able to produce the necessary documents and ensure the veteran is eligible. The representative may also withdraw the application, but only with written authorisation if the veteran did not make the application themselves (s 7(4)).

The Repatriation Commission. The Commission is the decision‑maker on applications and on internal reviews (ss 9, 14). It must approve an application if satisfied the person is eligible (s 9(2)). It also is responsible for paying the benefit (s 9(3)). The Commission may delegate its powers, but a delegate must not review a decision they made (s 14(4)).

The Secretary of the Department of Veterans’ Affairs. The Secretary must investigate each application and provide the Commission with the application, evidence, and any relevant documents from the Department (s 8).

Administrative Review Tribunal. The ART has jurisdiction to review Commission decisions made under s 14 on internal review. An application must be made within three months after the person is given written notice of the decision (s 16(2)). This differs from the standard ART time limits, so practitioners must be careful. The transitional provisions also preserve the right to apply to the AAT for matters arising before 14 October 2024 and save proceedings not finalised before that date (s 17 Notes).

Motorcycle dealers and part suppliers. They are indirectly affected because the benefit effectively reduces the net cost to the veteran. However, the benefit is paid to the veteran after purchase, not as a point‑of‑sale discount. The tax invoice must be issued in the name of the veteran (or applicant) and meet GST requirements.

Duty of the Secretary to investigate. Section 8 imposes a mandatory duty: the Secretary must investigate an application made in accordance with s 6, and must give to the Commission the application, any evidence submitted, and any relevant documents under Departmental control. This includes evidence obtained during the investigation. There is no discretion to skip the investigation.

Duty of the Commission to decide. Upon receiving the Secretary’s material, the Commission must either approve or refuse the application (s 9(1)). If satisfied the applicant is eligible, it must approve the application (s 9(2)). Once approved, the Commission must pay the benefit (s 9(3)). The Commission also has a duty to give written notice of its decision stating the decision, the reasons, the effective date, and the right to request review (s 10).

Right to apply for a motorcycle benefit. The right is vested in any person who meets the eligibility criteria in ss 3-5, or in a person acting on behalf of such a veteran (s 6(4)). The application must be made in Australia on the day it is lodged (s 6(5)).

Right to withdraw an application. An applicant may withdraw an undecided application orally or in writing (s 7(1)). If withdrawn, the application is deemed never made (s 7(2)), which means the applicant can later make a fresh application. This right does not apply after the decision is made.

Right to request internal review. An applicant dissatisfied with the Commission’s initial decision under s 9, or another person on the applicant’s behalf, may ask the Commission to review the decision (s 13(1)). The request must be in writing, state the grounds, and be lodged within three months of receiving the written notice of the decision (s 13(2)). The Commission must review the decision within three months of the request, or longer if agreed in writing (s 14(1)).

Right to seek external review by the ART. After the Commission has reviewed its decision under s 14, a person whose interests are affected may apply to the ART for review (s 16(1)). The application period is three months from the date the person is given written notice of the reviewed decision (s 16(2)). The ART can decide to extend time under ART Act s 19, which is preserved by s 16(3).

Right to reasons. Both the initial decision notice (s 10(c)) and the review decision notice (s 15(2)(b)) must include a statement of reasons. The review decision notice must also state the right to apply to the ART (s 15(2)(d)).

The instrument itself does not create any criminal offences or civil penalties. However, several enforcement mechanisms operate through the Veterans’ Entitlements Act and general law.

Recovery of overpayments. Section 122 of the VEA deals with payment of benefits, and subsection 122(4) provides that benefits are payable in the way the Commission determines. Section 205 of the VEA allows the Commonwealth to recover overpayments. The note to s 12 explicitly warns that a motorcycle benefit paid to a person may be recovered under s 205 of the Act. If a veteran receives a benefit for which they were not eligible,for example, because the two‑year waiting period was not satisfied or the motorcycle was not used for personal transportation,the amount can be recovered as a debt due to the Commonwealth. This could be enforced by garnishment, offset against other Veterans’ Entitlements payments, or legal action.

False statements and fraud. Making a false or misleading statement in support of an application could attract criminal liability under the Criminal Code Act 1995 (Cth) for obtaining a financial advantage by deception, or under s 137.1 of the Criminal Code for giving false or misleading information to a Commonwealth entity. Additionally, the VEA contains its own offences for providing false statements to obtain a pension or benefit. Even though this instrument is separate, the Commission’s decision‑making relies on truthful information; deliberate misrepresentation would likely result in withdrawal of the benefit and recovery.

Administrative sanctions. The Commission can refuse an application if it is not satisfied of eligibility (s 9(2)). There is no power to impose a fine or penalty under the instrument. The main sanction is losing the benefit or having to repay it.

Impact of internal and external review. If a decision to refuse an application is found to be wrong on review, the Commission must pay the benefit. Conversely, if an approval was given in error, the Commission can set aside that decision on internal review or the ART can do so on application by a person whose interests are affected (including the Commission itself, though not stated, the ART Act allows parties). However, there is no express provision for the Commission to reopen a decision that has already been paid without the veteran’s fault; recovery would be through s 205.

No criminal penalties in this instrument. This is notable because some similar instruments (e.g., for motor vehicle assistance) do contain offence provisions. The drafter has opted to rely on the parent Act and general law.

Veterans’ Entitlements Act 1986. This instrument is made under s 106 of Part VI of the VEA. The VEA provides the statutory framework for veterans’ pensions, allowances, and benefits. The instrument operates within that framework, and many terms (such as “veteran”, “Commission”, “Secretary”, “war‑caused injury”, “defence‑caused disease”) are defined in the VEA and have the same meaning here (s 2 Note). Importantly, the benefit is determined to be an exempt lump sum under paragraph 5H(12)(c) of the VEA, so it does not count as ordinary income for pension means testing (s 11 Note 2). The payment is also exempt from income tax under sections 52‑65 and 52‑75 of the Income Tax Assessment Act 1997 (s 11 Note 1). The VEA also governs the recovery of overpayments (s 205) and the manner of payment (s 122).

A New Tax System (Goods and Services Tax) Act 1999. The instrument relies on the GST Act to define the tax invoice requirements (s 6(2)(c)) and GST, GST‑free and related terms (s 2). The benefit amount is calculated as 1/11 of the purchase price, which matches the GST rate applied to the supply. This effectively makes the benefit a refund of the GST paid, though it is not structured as a formal input tax credit but as a direct payment.

Income Tax Assessment Act 1997. The “car limit” used to cap the benefit is drawn from s 40‑230(3) (s 11(2)). The Act defines “car” (s 2 references s 995‑1 of the ITAA 1997). The benefit is exempt from income tax.

Administrative Review Tribunal Act 2024. The instrument transitions review from the AAT to the ART. Section 16 gives a right to apply to the ART, and s 16(2) modifies the standard time limit (three months after notification of the decision, not the usual 28 days). Section 16(3) preserves the ART Act’s provisions on extension of time (s 19) and delegate review restrictions. Section 15(2) requires the Commission to have regard to rules made under ART Act s 295 when giving written notice. The instrument also defines “person whose interests are affected” by reference to ART Act s 4.

Veterans' Entitlements (Special Assistance,Motorcycle Purchase) Regulations 2001. Those old regulations are repealed by s 1B. However, transitional provisions in s 17 treat pending applications under the old instrument as if made under this new instrument. The note to s 1B explains that regulations in force under s 106(1) immediately before commencement take effect as a legislative instrument made by the Commission, by virtue of the Veterans’ Affairs Legislation Amendment (Miscellaneous Measures) Act 2014. This means the old regulations had already undergone a change in legal character. The new instrument cleans up the legislative architecture.

Veterans’ Affairs Legislation Amendment (Miscellaneous Measures) Act 2014. This amending Act is cited in the Note to s 1B. It provides that regulations made under s 106(1) of the VEA before that Act’s commencement (including the 2001 Regulations) have effect as if they were a legislative instrument made by the Commission. This is relevant for understanding why the old regulations were treated as a Commission instrument and why a new Commission instrument is now being made.

Administrative Review Tribunal (Consequential and Transitional Provisions No. 1) Act 2024. The Notes to s 17 refer to items 20 and 24 of Schedule 16, which deal with the continuation of AAT application rights and proceedings that existed before 14 October 2024. This ensures that veterans who had already applied to the AAT before the transition do not lose their review rights.

The instrument is new, with no amendment history of its own. However, its predecessor, the Veterans' Entitlements (Special Assistance,Motorcycle Purchase) Regulations 2001, was subject to some changes over its 24‑year lifespan. Those regulations commenced on 22 June 2001 and were last amended by the Veterans' Affairs Legislation Amendment (Miscellaneous Measures) Act 2014 which effectively re‑characterised them as a legislative instrument of the Commission. The current instrument repeals and replaces those regulations (s 1B). The instrument itself was made under subsection 106(1) of the VEA by the Repatriation Commission. It is a legislative instrument and is subject to disallowance by either House of Parliament. The commencement date is tied to the Administrative Review Tribunal (Miscellaneous Measures) Act 2025, which is scheduled to commence on a single date to be proclaimed.

The key structural change from the 2001 Regulations is the substitution of the ART for the AAT. The 2001 Regulations referred to the AAT and the Administrative Appeals Tribunal Act 1975; the new instrument replaces all references with the ART and the ART Act, and includes transitional provisions for pending applications and proceedings. There are also minor re‑wordings of eligibility criteria and the definition of “motorcycle”, but the substance of the benefit formula (1/11 of price, capped at car limit) and the two‑year gap rule remain unchanged.

Future amendments may occur when the car limit changes, but that is incorporated by reference. The instrument does not need amendment to update the cap; it automatically adjusts each year when the car limit under the ITAA 1997 changes.

There is no litigation history under this instrument because it has not yet commenced. However, the predecessor instrument generated a modest number of decisions by the Administrative Appeals Tribunal over the past two decades. While the source text does not name any cases, it is a matter of public record that the AAT occasionally dealt with disputes about whether a veteran met the injury requirement (e.g., what constitutes “permanently and completely useless” for a leg), whether the two‑year gap rule’s exceptions were satisfied, and what constitutes “special circumstances”. The instrument’s provisions on special circumstances (s 4(2)(c), (3)(c)) are a potential source of litigation because they give the Commission a broad discretion; tribunals have tended to require something out of the ordinary, not mere inconvenience or financial hardship.

The definition of “part” as excluding consumables could also be disputed: for example, whether a replacement oil filter is a “standard replacement part of equipment that is made specifically for the motorcycle” or a liquid‑containing component that falls within the exclusion of “liquids”. The AAT might have to draw a line. The requirement that the motorcycle be used for “personal transportation” could be contested if the veteran uses it also for recreation or occasional business.

Another likely area of dispute is the “no longer reasonably capable of being used” test in s 4(2)(b)(i) and (3)(b)(i). What degree of disrepair qualifies? The instrument requires that the motorcycle or car/vehicle is not insured for its replacement value as a condition of the exception; if it is insured, the exception does not apply, and the veteran must submit a claim. This creates an incentive to drop insurance after 40,000 km or if the vehicle is damaged, which is economically perverse.

Given the narrow cohort of eligible veterans, the total number of review applications is low. Most disputes are likely resolved at the internal review stage under s 14. External ART hearings will be case‑specific and fact‑dependent.

Must be in Australia on the day of application. Section 6(5) states: “An application is not valid unless the person is in Australia on the day the application is forwarded, or delivered, under subsection (2).” This is a strict rule. A veteran who is overseas even temporarily, or who posts the application from overseas, cannot make a valid claim. There is no provision for the Commission to waive this requirement. Practitioners should ensure the applicant is physically present in Australia when the application is lodged, even if a representative helps prepare it.

Two‑year restriction applies to the date of purchase, not the application. The restriction in s 4(1)(c) looks back two years from the day the purchase is made, not from the application date. If the veteran buys the motorcycle on 1 March 2025, they must not have received a benefit or purchased a GST‑free car/vehicle since 1 March 2023. If they lodged an application for a previous motorcycle on 1 March 2023 but the benefit was paid later, does that count? The provision says “had not received a motorcycle benefit for another motorcycle”. The critical date is receipt of the benefit, not application. There could be a gap if the benefit was paid after the two‑year window even though the application was within it.

The benefit is capped at the car limit, which changes annually. The car limit for the 2024‑25 financial year is $89,332 (approximately). The benefit for a motorcycle costing more than that is capped at 1/11 of the car limit (about $8,121), regardless of the actual price. The car limit is indexed annually, but veterans who buy expensive motorcycles may be surprised that only part of the GST is refunded.

Modifications excluded from purchase price. The “GST inclusive purchase price” excludes modifications made solely to adapt the motorcycle or part for driving or for transporting a person (s 11(2)). This means if the veteran has the motorcycle fitted with hand controls, a sidecar, or other adaptations, the cost of those modifications is not included in the purchase price for calculating the benefit. The veteran would need to pay the GST on those modifications without any offset. The instrument does not provide a standalone benefit for modifications.

Insurance condition for the “unfit vehicle” exception. If the veteran’s previous motorcycle or car/vehicle is no longer usable, the two‑year rule exception applies only if that vehicle is not insured for its replacement value (s 4(2)(b)(ii), (3)(b)(ii)). If it is insured, the exception does not apply even if the vehicle is a wreck; the veteran must wait two years or rely on the special circumstances discretion. This may trap veterans who prudently insure their vehicles.

Withdrawal deletes the application entirely. Withdrawing an application under s 7(2) means it is taken never to have been made. This is useful if the applicant made a mistake, but it also means the veteran cannot later argue that the application date should count for some purpose. The Commission cannot backdate a withdrawn application.

The application must be accompanied by a tax invoice that meets GST law requirements. Section 6(2)(c) requires a tax invoice that complies with subsection 29‑70(1) or a recipient‑created tax invoice under 29‑70(3) of the GST Act. If the dealer provides a quote or a pro forma invoice, it is not sufficient. The veteran must have actually purchased the motorcycle and received the proper document. Timing: the purchase must be on or after 1 July 2000 (s 4(1)(a), s 5(a)), but there is no other time limit from purchase to application. However, a delay might affect evidence.

Review time limits are strict. The internal review request must be lodged within three months after the applicant receives written notice of the Commission’s decision (s 13(2)(c)). The ART application for review must be made within three months after the person is given written notice of the reviewed decision (s 16(2)). The ART can extend time under s 19 of the ART Act, but only if it would be reasonable and the application is made after the period. Practitioners should not assume extensions are easy.

Transitional note for pre‑14 October 2024 applications. Notes to s 17 indicate that item 20 of Schedule 16 to the Administrative Review Tribunal (Consequential and Transitional Provisions No. 1) Act 2024 preserves the right of a person who could have applied to the AAT before 14 October 2024 to still apply to the ART. This could create confusing time‑limit issues for applications that straddle the transition date.

Step 1: Confirm eligibility under s 3. The veteran must fall into one of the specific categories - either receiving a Part II pension under s 24 of the VEA (total and permanent incapacity), or having lost a leg or both arms (or rendered permanently and completely useless) due to a service‑related condition. Practitioners should obtain medical evidence confirming the diagnosis, the service nexus (war‑caused or defence‑caused), and the nature of the loss or uselessness. If the veteran is receiving the pension, a copy of the pension determination is advisable.

Step 2: Check the two‑year history. Before purchasing a motorcycle, the veteran should list any motorcycle benefits received in the previous two years and any GST‑free car or vehicle purchases in that period. If either exists, determine whether an exception applies: the vehicle has been used for more than 40,000 km; or the vehicle is no longer usable AND is not insured for replacement value; or the Commission may be asked to find special circumstances. Keep odometer records, repair estimates, and insurance documents.

Step 3: Purchase the motorcycle or part and obtain a compliant tax invoice. The purchase must be on or after 1 July 2000. The tax invoice must meet the requirements of GST Act s 29‑70(1) (or a recipient‑created tax invoice). Ensure the invoice is in the name of the veteran (or the applicant if acting on behalf). If the purchase price includes modifications for adaptation, ask the dealer to itemise them separately, because those costs are excluded from the benefit base.

Step 4: Prepare the application in writing. Use the approved form if one exists; if not, a clear letter stating the veteran’s details, the purchase, the intention to use the motorcycle for personal transportation, and enclosing the tax invoice and any supporting evidence (e.g., proof of the injury, pension details, evidence of mileage for an earlier vehicle if relying on the exception). The applicant must be in Australia on the date the application is forwarded or delivered. If a representative is making the application, they should also be in Australia, though the instrument only requires the applicant (the person who makes the application) to be in Australia - if the veteran is the applicant, the veteran must be in Australia even if a lawyer prepares the form.

Step 5: Lodge the application at an office of the Department of Veterans’ Affairs in Australia. Section 5T of the VEA (noted in s 6) deals with when an application is taken to be forwarded or delivered - likely by post or email. The safest approach is to hand‑deliver or send by registered post to a DVA office. Keep a receipt or proof of lodgement.

Step 6: Await the Commission’s decision. The Secretary investigates; the Commission decides. If approved, the benefit will be paid into a nominated bank account. If refused, the notice must state reasons and the right to request internal review. Note the three‑month timeline from receiving the notice.

Step 7: Request internal review if dissatisfied. Submit a written request to the Commission within three months, setting out the grounds. Request reasons if not already provided. The Commission must decide within three months (or longer if agreed). The decision will include reasons and the right to apply to the ART.

Step 8: Apply to the ART for external review. If still dissatisfied, a person whose interests are affected may apply to the ART within three months of receiving the Commission’s review decision. The application must comply with ART Act procedures. Retain all correspondence, invoices, and records of mileage and insurance for the earlier vehicle.

Step 9: Keep records after receiving the benefit. The veteran should retain the tax invoice and proof of purchase, as well as records demonstrating the motorcycle is used for personal transportation. If the motorcycle is sold or written off within the two‑year period, the veteran may need to show the new use if later applying for another benefit. Any subsequent claim will depend on the two‑year gap rule and exceptions.

Step 10: Monitor the car limit annually. The benefit cap changes each financial year. When planning a purchase, check the current car limit from the ATO or the ITAA 1997 to understand the maximum possible benefit. For expensive motorcycles, the effective refund is reduced proportionally.