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 80 - Settlement sharing arrangements  

Subdivision 80-A - Insurance policy settlement sharing arrangements  

80-20   Managing operator ' s payments or supplies  

(1)    
For the purposes of Divisions 78 and 79 , a *managing operator ' s payment or supply is treated as follows.

(2)    
If the * managing operator is a party to the * insurance policy settlement sharing arrangement because it issued only one * insurance policy , the * managing operator ' s payment or supply is treated as a payment or supply, made by the managing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy.

(3)    
If the * managing operator is a party to the * insurance policy settlement sharing arrangement because it issued 2 or more * insurance policies , the * managing operator ' s payment or supply is treated as a payment or supply made by the managing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions.

Example:

3 vehicles are involved in an accident, 2 of which are covered by insurance policies issued by the managing operator and the other by a policy issued by a contributing operator. The managing operator makes a payment in settlement of a claim by an insured person in respect of the accident.

For the purposes of Division 78 or 79 , half of the payment will be treated as being made under each of the policies issued by the managing operator.



 

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