A New Tax System (Goods and Services Tax) Act 1999
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-E - Statutory compensation schemes
View history note
Hide history noteSubsection 38-60(1) and this Division apply in relation to a payment or supply made in settlement of a claim for compensation under a * statutory compensation scheme in the same way that they apply to a payment or supply made in settlement of a claim under an * insurance policy .
Note:
Subsection 38-60(1) provides that certain supplies to insurers are GST-free.
(2)
For the purposes of the application of subsection 38-60(1) and this Division in relation to such a payment or supply:
(a) the claim for compensation under the scheme is treated as a claim under an * insurance policy ; and
(b) the entity operating the scheme is treated as the insurer; and
(c) an entity is treated as the entity insured if:
(i) the entity ' s payment of premiums, contributions or similar payments under the scheme, or payment of levy in connection with the scheme; or
enabled the claim for compensation to arise; and
(ii) the entity ' s liability to pay premiums, contributions or similar payments under the scheme, or liability to pay levy in connection with the scheme;
(ca) those payments that that entity makes or is liable to make are treated as a premium it has paid; and
(d) the supply of membership of, or participation in, the scheme is treated as the supply of an * insurance policy .
(3)
However, if the entity treated as the entity insured:
(a) is liable to make payments referred to in paragraph (2)(c); and
(b) has not made all those payments;
for the purposes of sections 78-10 and 78-15 , the entity ' s entitlement to an input tax credit for the premium paid is taken to be what its entitlement would have been if it had made all those payments.
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