270   Exemptions for motor dealers

(1) Trading stock—used motor vehicles
Duty under this Chapter is not chargeable on an application by a motor dealer, being the holder of a dealer’s licence or a wholesaler’s licence issued under the Motor Dealers Act 1974, or the holder of a similar licence under the corresponding provisions of a law of another State or Territory, to register a motor vehicle that is trading stock.

(2) Demonstrator motor vehicles—new motor vehicles
The Chief Commissioner may approve arrangements for the issue to motor dealers of exemption authorities to be used in connection with the registration of demonstrator motor vehicles of the dealer.

(3)  Duty under this Chapter is not chargeable on an application by a motor dealer to register a motor vehicle if the motor vehicle is a demonstrator motor vehicle and, at the time the application for registration is made, the dealer produces an exemption authority that has been completed by the dealer.

(4)  A motor dealer must not produce an exemption authority in connection with the registration of a motor vehicle that is not a demonstrator motor vehicle.

Maximum penalty: 100 penalty units.

Note. An offence against subsection (4) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121 of the Taxation Administration Act 1996.

(5)  If a motor dealer produces an exemption authority in connection with the registration of a motor vehicle that is not a demonstrator motor vehicle, the Chief Commissioner may recover any duty that would have been chargeable on the application for registration, together with any interest and penalty tax payable.

(6) Definitions
In this section:

demonstrator motor vehicle means a new motor vehicle used solely or primarily for the sale of another new motor vehicle of the same class.

exemption authority means an exemption authority issued in accordance with arrangements approved by the Chief Commissioner.

trading stock means a used vehicle offered or exposed for sale by a motor dealer in the course of a dealer’s business, other than a vehicle used:

(a)  solely or principally by the dealer or a member of the dealer’s staff or family, or

(b)  for the general purposes of the dealer’s business.