A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 78 - Insurance  

Subdivision 78-A - Insurers  

78-18   Increasing adjustments for payments of excess under insurance policies  

(1)    
An insurer has an increasing adjustment if:

(a) there is a payment of an excess to the insurer under an * insurance policy ; and

(b) the insurer makes, or has made, payments or supplies in settlement of a claim under the policy; and

(c) the insurer makes, or has made, * creditable acquisitions or * creditable importations directly for the purpose of settling the claim.

(2)    
The amount of the increasing adjustment is 1/11 of the amount that represents the extent to which the payment of excess relates to * creditable acquisitions and * creditable importations made by the insurer directly for the purpose of settling the claim.

(3)    
An insurer has an increasing adjustment if:

(a) there is a payment of an excess to the insurer under an *insurance policy; and

(b) the insurer makes, or has made, * creditable acquisitions or * creditable importations directly for the purpose of settling the claim; and

(c) the insurer has not made any payments or supplies in settlement of the claim.

The amount of the increasing adjustment is 1/11 of the amount of the payment of the excess.