Are there special rules for the phasing in of input tax credits on motor vehicles?

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Are there special rules for the phasing in of input tax credits on motor vehicles?

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Section 20 of the GST Transition Act relates to the phasing in of input tax credits for new motor vehicles. In general it does not apply to new motor vehicles purchased by financiers for re-supply under hire purchase agreements, as they are holding the new motor vehicles as trading stock in accordance with subsection 20(4)(a) of the Transition Act. It also does not apply to second hand vehicles in accordance with subsection 20(4)(b) of the Transition Act. The phasing in of input tax credits for new motor vehicles will apply to purchasers, including those who purchase under hire purchase agreements. This means that purchasers generally: • will not be entitled to input tax credits for new motor vehicles acquired under hire purchase agreements entered into prior to 30 June 2001. • will be entitled to 50% input tax credit for new motor vehicles acquired under hire purchase agreements entered into between 1 July 2001 to 30 June 2002. • Will be entitled to 100% input tax credit for new motor

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