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 79 - Compulsory third party schemes  

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79-1   What this Division is about  

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Operators of compulsory third party schemes have adjustments which enable the net GST on the schemes to reflect correctly their margins after settlements of claims and other payments and supplies under the schemes are taken into account.

The normal application of Division 78 to some insurance policy payments and supplies under the schemes is modified (see Subdivision 79-A ). That Division is also extended so that it applies in a modified form to payments and supplies connected with, but not under, insurance policies (see Subdivision 79-B ). For other settlements, and payments, provisions similar to Division 78 apply (see Subdivision 79-C ). Certain adjustments are worked out using an " applicable average input tax credit fraction " (see Subdivision 79-D ).

Note:

Division 80 deals with use of settlement sharing arrangements by the operators of compulsory third party schemes.

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History

S 79-1 inserted by No 67 of 2003, s 3 and Sch 11 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.

Table of Subdivisions

79-A	Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies
79-B	Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies
79-C	Other payments and supplies under compulsory third party schemes
79-D	Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction

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