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  

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78-35   Taxable supplies relating to rights of subrogation  

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(1)    

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If, in settlement of a claim made by an insurer in the insurer ' s exercising of rights of subrogation in respect of an *insurance policy, an entity that is not insured under the policy makes one or more of the following:

(a) a payment of *money;

(b) a payment of *digital currency;

(c) a supply;

the payment or supply is not treated as *consideration for a supply made by the insurer (whether or not the payment or supply is made to the insurer) or by the entity insured.

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History

S 78-35(1) substituted by No 118 of 2017, s 3 and Sch 1 item 8, effective 1 July 2017. For application provision, see note under the definition of " digital currency " in s 195-1 . S 78-35(1) formerly read:

(1)
If, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of an *insurance policy, an entity that is not insured under the policy:

(a) makes a payment of *money; or

(b) makes a supply; or

(c) makes both a payment of money and a supply;

the payment or supply is not treated as *consideration for a supply made by the insurer (whether or not the payment or supply is made to the insurer) or by the entity insured.

(2)    
This section has effect despite section 9-15 (which is about consideration).

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History

S 78-35 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-35 formerly read:

78-35 Payments of excess under insurance policies are not consideration for supplies  
(1)
The making of any payment by an entity is not treated as *consideration for a supply, to the entity or any other entity, to the extent that the payment is the payment of an excess under an *insurance policy.

(2)
This section has effect despite section 9-15 (which is about consideration).

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