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  

Subdivision 79-A - Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies  

79-15   Application of sections 78-10 and 78-15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement  

(1)    
This section applies to a payment or supply if:

(a) it is a payment or supply made under a * compulsory third party scheme ; and

(b) the payment or supply is made in settlement of a claim under an * insurance policy ; and

(c) there is only one * operator who issues insurance policies under the scheme; and

(d) assuming the requirements of paragraph 78-10(2)(b) were satisfied, the operator would have a * decreasing adjustment under section 78-10 in respect of the payment or supply; and

(e) an election under subsection (4) is in force during the * financial year in which the payment or supply is made.

(2)    
For the purposes of section 78-10 , the * operator has a * decreasing adjustment under that section in relation to the payment or supply.

(3)    
Section 78-15 does not apply to the * decreasing adjustment , but its amount is instead worked out using the applicable * average input tax credit fraction ( see section 79-95 ).

(4)    

The * operator may, in writing, elect that, from the start of a specified * financial year , any * decreasing adjustment in relation to all payments or supplies:

(a) that are made during the financial year; and

(b) to which paragraphs (1)(a), (b), (c) and (d) apply;

are to be worked out using the applicable * average input tax credit fraction .

(5)    
Subject to subsection (6), the election must be made before the start of the specified * financial year .

(6)    
Subsection (5) does not apply if the election specifies the * financial year beginning on 1 July 2003 and is made before the end of 30 days after the day on which this section commences.

(7)    
The election is in force during the specified * financial year and every later financial year, other than one that begins after a financial year in which the election is revoked.