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-C - Third parties  

78-65   Payments etc. to third parties by insurers  

(1)    

The making of any payment by an insurer to an entity is not treated as * consideration for a supply to the insurer by the entity, to the extent that:

(a) the payment is made in settlement of a claim under an * insurance policy under which the entity is not insured; and

(b) the payment is to discharge a liability owed to that entity by the entity insured.

(2)    

The making of any supply by an insurer to an entity:

(a) is not to be treated as a * taxable supply by the insurer; and

(b) is not to be treated as * consideration for a supply to the insurer by the entity, or any other entity;

to the extent that:

(c) the supply is made in settlement of a claim under an * insurance policy under which the entity is not insured; and

(d) the supply is to discharge a liability owed to that entity by the entity insured.

(3)    
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-15 (which is about consideration).