Document ID: chunk:federal_register_of_legislation:C2010C00575:clause:1_19b:p1
Version: federal_register_of_legislation:C2010C00575
Segment Type: clause
Provision Reference: sch 1 cl 19B (pt 1/3)
Character Range: 6126–8512

19B  Sales etc. of cars held on 1 July 2000 for the purpose of rental

Entitlement to special credit

 (1) If, in relation to a supply of a car, all of the following conditions are met, the entity referred to in subsection (6) is entitled to a special credit under this section in relation to the supply:
 (a) the supply takes place, or took place:
 (i) on or after 1 July 2000; and
 (ii) before 1 July 2002;
 (b) the entity held the car at the start of 1 July 2000;
 (c) the supply is, or was, the first sale of the car on or after 1 July 2000;
 (d) during the entire period at the start of 1 July 2000 until the entity ceases to hold the car:
 (i) the entity held the car, for the purposes of supply by way of rental, in the course or furtherance of an enterprise; and
 (ii) the car was covered by the appropriate compulsory third party insurance under subsection (4);
 (e) the car has been the subject of sales tax.

 (2) For the purposes of paragraph (1)(c), a sale of the car to the entity at the end of a period during which the entity was the lessee of the car is not treated as a sale of the car.

 (3) For the purposes of subsection (1), a supply of the car to an insurer in settlement of a claim under an insurance policy is treated as a sale of the car.

 (4) For the purposes of subparagraph (1)(d)(ii), the appropriate compulsory third party insurance for the car is:
 (a) in any case—compulsory third party insurance for which the premium was calculated on the basis that the car was for supply by the entity by way of rental in the course or furtherance of the enterprise referred to in subparagraph (1)(d)(i); or
 (b) if:
 (i) the car is not required, by the law of the State or Territory in which it is registered, to be covered by compulsory third party insurance of that kind; but
 (ii) there is another State or Territory in which it would be required to be covered by compulsory third party insurance of that kind if it were registered in that State or Territory;
  the kind of compulsory third party insurance by which the car is required, by the law of the State or Territory in which it is registered, to be covered.

 (5) This section does not apply to a supply in relation to which any entity is entitled to a special credit under section 19A.

Who is entitled to the special credit

 (6) The entity entitled to the special credit is the entity that held the