Part 4Payment of motorcycle benefit

Part 4 Payment of motorcycle benefit

11 Amount of motorcycle benefit

(1) The motorcycle benefit for a motorcycle or motorcycle part is:

(a) if its GST inclusive purchase price does not exceed the car limit for the financial year in which the motorcycle or part was purchased—an amount equal to 1/11 of the value; or

(b) if its GST inclusive purchase price exceeds the car limit for the financial year in which the motorcycle or part was purchased—an amount equal to 1/11 of the car limit.

(2) In this section:

car limit—see subsection 40‑230(3) of the Income Tax Assessment Act 1997.

GST inclusive purchase price, for a motorcycle or part, means the amount of money paid by a veteran to purchase the motorcycle or part:

without discounting for an amount of GST; and

excluding the amount of money paid for any modifications made solely for the purpose of adapting the motorcycle or part for driving or for transporting a person.

Note 1 A payment under this instrument is exempt from income tax—see sections 52‑65 and 52‑75 of the Income Tax Assessment Act 1997.

Note 2 A payment received by a person under this instrument is determined to be an exempt lump sum under paragraph 5H(12)(c) of the Act, and is therefore not part of the person’s ordinary income for the Act—see subsection 5H(1) of the Act, definition of ordinary income.

12 Payment into bank account

A motorcycle benefit may be paid to the credit of a bank account, nominated and kept by a person, that is kept by the person alone, or jointly or in common with another person.

Note 1 A pecuniary benefit that is payable to a person under the Act:

Note: (a) is payable in the way the Commission determines—see subsection 122(4) of the Act; and

Note: (b) may, on request by the person, be paid to another person if the Commission approves the payment to the other person—see the Act, subsection 122(2).

Note 2 A motorcycle benefit paid to a person may be recovered under section 205 of the Act.