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 72 - Associates  

Subdivision 72-A - Supplies without consideration  

72-5   Taxable supplies without consideration  

(1)    
The fact that a supply to your * associate is without * consideration , does not stop the supply being a * taxable supply if:

(a) your associate is not * registered or * required to be registered ; or

(b) your associate acquires the thing supplied otherwise than solely for a * creditable purpose .

(2)    

This section has effect despite paragraphs 9-5(a) and 84-5(1)(a) (which would otherwise require a taxable supply to be for consideration).

(3)    

However, this section does not apply to any supply that is constituted by an insured entity settling a claim under an * insurance policy or by an entity (other than an * operator ) settling a claim under a * compulsory third party scheme .