Section 214 of the Principal Act is repealed and the following section is substituted:

214.     Applicable exemptions

(1)  An exemption certificate may only be used to obtain exemption from payment of duty in respect of the registration or transfer of a specified motor vehicle if –

(a) in the case of a new motor vehicle, it is acquired and used solely for the purpose of demonstration to prospective purchasers; or

(b) in the case of a used motor vehicle, it is acquired and used solely for resale in the ordinary course of business and for no other intermediate purpose; or

(c) in the case of a holder who is a wholesaler, the motor vehicle is acquired and used solely for sale to other holders of exemption certificates or motor dealers in other States –

and if the holder of the exemption certificate records the unique identifying number of the exemption certificate on the application to register the motor vehicle.

(2)  If a motor dealer acquires a motor vehicle for a purpose mentioned in subsection (1) and then loans the motor vehicle to a charity that uses it for charitable purposes, that loan does not disqualify the motor dealer from using the exemption certificate as specified in that subsection so as to receive under section 204 an exemption from payment of duty under this Chapter.

(3)  In subsection (2)  –

charitable purpose means any purpose that in the opinion of the Commissioner is charitable;

charity means an institution that is a religious, scientific, charitable or public educational institution exempted by section 23 of the Income Tax Assessment Act 1936 of the Commonwealth from the payment of income tax under that Act.