[Modena]

Adam, in very basic terms, yes you have it right. In reality, no club is going to approve the type of vehicle you describe. Under this scheme it is effectively the club who is accepting responsibility for warranting that the car is safe (in writing), "roadworthy", not rediculous, and otherwise suitable to drive on the road. As Dave points out, if the club does the wrong thing then VicRoads can pull the permit scheme from the club, at which time all club permits issued by tha club would become void.

Vehicle acceptance under the scheme is obviously at the discretion of the club.