Protocol Guidelines
7. MOTOR VEHICLES
7.1 Privileged purchase of motor vehicles - overview
7.2 Official vehicles: numbers of vehicles
7.2.1 Official vehicles: directly imported
7.2.2 Official vehicles: purchased from bond
7.2.3 Official vehicles: purchase of locally manufactured vehicles7.3.1 Personal vehicles: directly imported
7.3.1.1 Motor Cycles
7.3.2 Personal vehicles: purchased from bond
7.3.3 Personal vehicles: purchase of locally manufactured vehicles7.4 Applications
7.5 Summary of vehicle entitlements
7.6 The Importation of Motor Vehicles and Australian Safety Standards
7.7 Stamp duty
7.8 Registration and number plates
7.9 Insurance
7.10 Disposal of motor vehicles
Within the subsequent paragraphs the following abbreviations are used:
· ITCS = Indirect Taxation Concession Scheme
· GST = Goods and Services Tax
· LCT = Luxury Car Tax
· ATO = Australian Tax Office
For the purposes of this Section, privileged officers and staff are:
Heads of Mission, diplomatic staff, members of the administrative and technical staff, and heads of consular posts, consular officers and consular employees. No exemptions from taxes and duties are available, however, to any person who is a citizen or permanent resident of Australia.
Service staff, private staff, honorary consuls and members of the locally engaged staff have no entitlement to vehicle exemption from taxes and duties for motor vehicles.
Please note that concessions in relation to duties and taxes are never available for imported vehicles purchased from a show room or car dealers' yards.
Administrative and technical staff and consular employees must import or purchase their entitlement of one motor vehicle within the first six months of their arrival in Australia.
Diplomatic missions and consular posts should pay particular attention to the rules surrounding the purchase and disposal of motor vehicles. In cases where permission is sought to dispose of vehicles before the three year period (see section 7.10 below), the Department will require that the owner of the vehicle substantiate a claim of very exceptional and unforeseeable circumstances.
The Department encourages Heads of Missions and Posts to request their staff to be careful before entering into financial commitments that could prove beyond their means.
7.1 Privileged purchase of motor vehicles - overview
(a) Vehicles directly imported (that is, not purchased from an Australian car dealer) by a diplomatic mission or consular post (other than a post headed by an honorary consul), or by a privileged person, will be free of customs duty and GST/LCT
The vehicle must have been previously purchased overseas and be imported as property of the diplomatic mission or consular post, or as part of the privileged person’s personal effects to be free of customs duty and GST/LCT.
The privileged importer must have title to the vehicle prior to it being landed in Australia at the first port of call in order to qualify for customs duty and tax concessions.
(b) Where a locally manufactured vehicle is purchased, GST/LCT must be paid but the GST and LCT are refundable on application to the ATO.
(c) Where an imported vehicle is acquired from an Australian car dealer, GST/LCT must be paid. Some countries have a reciprocal agreement with Australia whereby, in this situation, the GST/LCT may be refunded through application to the ATO.
Regardless of entitlements, where a mission or privileged person chooses to purchase an imported vehicle that has already been released from bond (ie a vehicle from the show-room floor at a price which includes duty), the duty cannot be refunded and GST/LCT must be paid. Under these circumstances the GST/LCT cannot be refunded.
These provisions apply with respect to the acquisition of either official or personal vehicles. Where customs duty/GST/LCT is not paid, or is refunded, and the vehicle is sold within three years of the date of importation or purchase, a pro rata amount of customs duty/GST/LCT must be paid upon sale.
7.2 Official vehicles: numbers of vehicles
Diplomatic missions and consular posts (but not those headed by an honorary consul) are permitted to import or purchase a reasonable number of official vehicles under privilege according to the size and needs of the mission or post. The guidelines are one vehicle for the Head of Mission or Post and one vehicle for each two diplomatic or consular officers (that is, excluding administrative and technical staff and consular employees) at the mission or post. Protocol Branch can provide clarification on what would be considered a reasonable number of official vehicles. Missions should seek the agreement of Protocol Branch before ordering additional official vehicles.
7.2.1 Official vehicles: directly imported
Diplomatic missions, and consular posts (other than posts headed by an honorary consular officer) may import vehicles free of customs duty or GST/ LCT on condition that the vehicles are directly imported (not purchased from an Australian car dealer).
7.2.2 Official vehicles: purchased from bond
Where an imported motor vehicle is acquired in the name of the mission through a car dealer who removes the vehicle from a Customs bonded warehouse, GST/LCT must be paid. A refund of GST/LCT may, however, be sought if the sending State has a reciprocal arrangement with Australia covering such purchases under the Indirect Tax Concession Scheme (ITCS). Countries that do not have a reciprocal arrangement with Australia will not be entitled to a refund of the GST/LCT for purchases of cars made from bond stores.
7.2.3 Official vehicles: purchase of locally manufactured vehicles
GST/LCT must be paid where a locally manufactured vehicle is purchased but, on application to the ATO, the GST/LCT is refundable under the ITCS.
7.3 Personal vehicles
Accredited diplomatic staff and consular officers may import or purchase under privilege one vehicle for their personal use. A diplomatic or consular officer who is accompanied by one or more dependent family members may import or purchase a second vehicle under privilege if the dependant is a licensed driver.
Administrative and technical staff and consular employees are permitted to import or purchase one vehicle under privilege, provided this is done within the first six months of arrival in Australia.
In circumstances where administrative and technical staff and consular employees have a subsequent posting to Australia, a period of at least three years outside Australia between postings must elapse before an entitlement to import or purchase another vehicle under privilege will be considered.
Where an officer and his/her spouseare both posted to Australia as diplomatic staff, consular officers, administrative and technical staff or consular employees, or any combination thereof, the Department will advise on their joint and individual entitlements in respect of the importation or purchase of a motor vehicle under privilege. Missions and posts are strongly advised to seek such clarification before any commitment to import or purchase a vehicle is made.
7.3.1 Personal vehicles: directly imported
Accredited diplomatic staff and consular officers may directly import a vehicle (two if the diplomatic/consular officer is accompanied) free of customs duty and GST/LCT.
Administrative and technical staff and consular employees are permitted to import directly (not through bond) one vehicle under privilege, provided this is done within the first six months of arrival in Australia.
Vehicles imported by privileged persons must be owned by the privileged importer before arrival at the first port of call in Australia.
7.3.1.1 Motor Cycles
Motor cycles may be imported into Australia under privilege free of customs duty and GST, however a motor cycle is regarded as a vehicle for the purposes of Sections 7.2 and 7.3 of the Protocol Guidelines. Before importing a motor cycle into Australia it is essential to ascertain that it will meet the Australian Design Rules; otherwise it cannot be registered for use on Australian public roads and must be garaged, re-exported or scrapped. (See also Section 7.6)
7.3.2 Personal vehicles: purchased from bond
Where an imported motor vehicle is acquired through a car dealer who removes the vehicle from a Customs bonded warehouse, GST/LCT must be paid. A refund of GST and LCT may, however, be sought if the sending State has a reciprocal arrangement with Australia covering such purchases under the Indirect Tax Concession Scheme (ITCS). Privileged officers of missions or posts of countries that do not have a reciprocal arrangement with Australia will not be entitled to a refund of the GST/LCT for purchases of vehicles made from bond stores.
7.3.3 Personal vehicles: purchase of locally manufactured vehicles
GST/LCT must be paid where a locally manufactured vehicle is purchased but, on application to the Australian Tax Office, the GST/LCT is refundable under the ITCS.
7.4 Applications
Applications by diplomatic staff and consular officers for the purchase of motor vehicles under privilege are made using an Australian Customs Service form (NAT10098) and forwarded directly to Protocol Branch, DFAT, Canberra. The application must be signed by the head of mission or person in the mission who is authorised to approve the application. Details of make, model, chassis and engine number of the vehicle should be included on the application form.
7.5 Summary of vehicle entitlements
Claims for tax concessions of customsduty on imported vehiclesare to be submitted, well in advance of the vehicle's importation, through the Protocol Branch using the Australian Customs Serviceform NAT10098(blue form) to enable customs clearance or delivery from bondof the vehicle. Vehicles that are purchased directly from overseas must be owned by the mission/individual before the vehicle is landed in Australia. Vehicles that are paid for after delivery in Australia will be subject to GST and LCT if applicable. Claims for refunds of GSTor LCT, where allowable, are to be submitted direct to the Australian Taxation Officein Canberra on the appropriate form. The claim can be submitted immediately following payment for the vehicle. The claim must be accompanied by a copy of the form and the original tax invoice for the vehicle.
Claims for concessions under the ITCSfrom the GST, and LCTwhere applicable, on Australian built and second hand motor vehiclesare to be submitted to Protocol Branchfollowing delivery of the vehicle, using the appropriate Australian Taxation OfficeITCSclaim form and the "Motor Vehicles-Entitlement to Purchase Under Privilege" form. Confirmation of eligibility for the concession should, however, be sought from the Department prior to purchase of the vehicle.
Information on entitlements to exemption from taxes and duties on motor vehicles are based on broad reciprocity.
Staff of missions or posts intending to purchase a motor vehicle duty free should check first with the ATO, which administers these arrangements, to confirm entitlements. The ATO can be contacted by telephoning (07) 3853 4760. The relevant ATO web-site is www.ato.gov.au/itcs. Advice on these entitlements may also be obtained from the Department of Foreign Affairs and Trade by telephoning (02) 6261 2915 or (02) 6261 2273.
7.6 The Importation of Motor Vehicles and Australian Safety Standards
Any new or used vehicle imported for use in Australia must meet Australian safety and emission standards (Australian Design Rules or ADRs) and have fitted a compliance plate indicating that the vehicle meets these requirements. Officers planning to import cars into Australia may need to contact vehicle manufacturers regarding any modifications required before import and obtain their certification that vehicles meet Australian standards. Imported vehicles sold through authorised motor vehicle dealers should be fitted with a compliance plate.
Compliance plates can be fitted only with the approval of the Federal Office of Road Safety, Department of Transport and Regional Services (telephone: (02) 6274 7506, web-site: www.dotars.gov.au). A vehicle cannot be registered and used on public roads in Australia without a proper compliance plate. Vehicles must also comply with State or Territory registration requirements.
Before importing a vehicle into Australia it is essential to ascertain that the vehicle will meet these requirements; otherwise the vehicle cannot be registered and used on Australian roads and must be garaged, re-exported or scrapped. Any person contemplating directly importing a motor vehicle into Australia, whether new or used, is strongly advised to check with the Federal Office of Road Safety whether the vehicle would comply with ADRs; otherwise they could be faced with considerable financial costs. The Federal Office of Road Safety can provide further information and should be contacted before organising shipment of any motor vehicle to Australia. Left hand drive vehicles are not permitted to be registered for use on public roads in Australia.
Vehicles more than fifteen years old on arrival in Australia may be imported without restriction (but must still conform to State or Territory registration requirements applicable to an Australian car of the same age).
7.6.1 Considerations before Importing
Overseas vehicles are usually built to different specifications to those required for the Australian market. It should not be assumed that a vehicle that seems to be identical to a model already available in Australia meets the required Australian Design Rules. Most vehicles coming into Australia, if not specifically built to Australian standards, must be modified before registration.
Usually vehicles for use on public roads in Australia are required to be right hand drive. Officers considering importing a left hand drive vehicle should contact the relevant State or Territory registration authority for information on whether or not a particular left hand drive vehicle will be accepted for registration.
7.7 Stamp duty
The requirement to pay stamp duty on sales is a matter which is dealt with by respective state or territory governments. Prior to purchasing a vehicle the arrangements applying should be checked with the respective state/territory.
7.8 Registration and number plates
All motor vehicles to be used in a public place in Australia are required to be registered. Those owned by Diplomatic missions and Consular posts, by their respective staff members and by dependent members of their household must be registered with the local registration authority and are required to carry diplomatic or consular plates unless the Department's approval has been given to use standard registration plates. (This approval is given only in exceptional circumstances. If any mission or post believes such exceptional circumstances exist, it should report these circumstances to the Department and seek special approval to use standard plates.)
Diplomatic number plates display the letters DC or DX followed by four numbers: the first two designate the mission with which the vehicle is associated and the last two identify the owner.
Official vehicles and those owned by diplomatic staff and their eligible dependent family members carry DC number plates. Those owned by administrative and technical staff and their eligible dependent family members carry DX plates. This includes all vehicles, irrespective of whether bought under privilege or not.
Requests for the issue of DC and DX number plates are made to Protocol Branch, showing the owner's name, the make and model of the vehicle, year of manufacture, chassis number and the engine number. Protocol Branch will allocate the registration number and arrange for the Motor Registry to issue the number plates.
DC and DX number plates are not transferable when a motor vehicle bearing them is sold. The plates should be returned immediately to the Motor Registry at Dickson or Woden.
Diplomatic and consular vehicles are not exempt from the requirements of the Motor Vehicles Standards Act, which relates to vehicle safety standards. Registration must be renewed every 12 months.
In the Australian Capital Territory motor vehicle registrations and the issue of number plates are the responsibility of the ACT Government. These functions are carried out at the Dickson Motor Registry and the ACT Government Shopfront Office at Woden. In other states or the Northern Territory application for consular registration plates should be made to the local government authorities.
Motor vehicle registrations in the ACT are provided free of charge to missions, to their diplomatic and administrative and technical staff, and to dependent members of their households. The cost of registration in other states and territories is a matter for the respective state or territory government authorities.
7.9 Insurance
Third party insurance cover must be paid in all states and territories. Acquisition of third party insurance forms a part of the motor vehicle registration process. Not only is it an offence to drive a vehicle without third party insurance but, in the event of an accident where someone was injured or killed, there could be serious financial implications resulting from legal claims for compensation against the uninsured driver.
In addition, it is strongly recommended that all motor vehicles purchased under privilege carry comprehensive insurance cover to the full market value (i.e. including duty/taxes) of the vehicle in Australia. The insurance value will then include the duty which must be paid if a privileged vehicle is stolen or damaged beyond repair (Section 7.12).
Insurance cover, other than compulsory third party, may be difficult to obtain for non-standard and used imported vehicles.
7.10 Disposal of motor vehicles
Vehicles purchased under privilege may be sold without payment of Customs Duty or GST/LCT three years after the date of entry to Australia (where the vehicle is directly imported into Australia) or, three years from the date of delivery in the case of a locally manufactured vehicle.
Where the officer concerned is transferred from Australia before the three-year period expires, approval for the sale of his or her personal vehicle may be given, but a pro rata Customs Duty or GST/LCT will be charged if the vehicle was purchased under privilege.
Apart from cases where the officer is being transferred from Australia, the Department will not approve the early - that is, inside three years - disposal of a motor vehicle except in very exceptional and unforeseeable circumstances. The circumstances must be fully explained and endorsed by the head of post.
Where permission for an early sale of a vehicle is given, and it is intended to purchase a replacement vehicle, it will be necessary to provide reasons for the proposed change of vehicle and demonstrate that no excessive profit will be made on the early sale of the original vehicle. The 18 month rule (Section 7.12) would apply.
Where approval is given for the early disposal of a vehicle, a pro-rata reduction will be allowed on the customs duty and GST/LCT which would have been payable at the date of purchase. This is referred to as the residual duty and is calculated by deducting 1/36th from the duty and/or GST/LCT for each completed month of ownership. For the purpose of calculating the residual duty, whichever should occur first of the following dates is regarded as the disposal date:
- the date of the vehicle's sale, or
- the date of completion of posting (including retirement), or
- departure of an owner from Australia.
Applications for the disposal of motor vehicles, whether purchased under privilege or not, should be lodged with the Protocol Branch of the Department, using Australian Customs Service form B791. The proposed method of disposal, the reason for disposal and the proposed date of disposal should be indicated.
Where an official or personal vehicle is sold or exported from Australia, the mission or post should ensure that the registration on the vehicle is cancelled before the vehicle leaves the ACT or the State or Territory where it is registered, and the number plates are returned to the relevant motor registry. Once the registration is cancelled, a temporary licence may be obtained to allow the vehicle to be taken to the intended place of sale. The vehicle should not be sold or transported interstate with the number plates still on the vehicle.
7.11 Transfer of motor vehicles
Vehicles may be transferred between eligible privileged persons without payment of customs duty and/or GST/LCT. The new owner may dispose of the vehicle free of duty and GST/LCT three years from its original date of entry or delivery.
7.12 Replacement of motor vehicles
Where a diplomatic staff member or consular officer has been in possession of a vehicle purchased under privilege for three years, approval may be sought from the Department to replace that vehicle with another vehicle purchased under privilege. Any application for such a replacement needs to be made before the sale of the vehicle that is to be replaced, and accompanied by a statement from the Head of Mission or Post that the officer is expected to remain in Australia for at least a further 18 months.
This facility is available to diplomatic staff and consular officers only. It is not available to administrative and technical staff or consular employees who have first entry privileges only.
Where a vehicle purchased under privilege has been stolen or damaged beyond repair, or returned as defective, concessional disposal may be approved, in which case the appropriate duty must be paid. (See Section 7.9 on the need to have full comprehensive insurance to cover this possibility.) When this duty has been paid, the purchase of another privileged vehicle will be allowed and the rules as noted in Section 7.11 will apply.
related links: Australian Customs Service, Australian Tax Office