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  

80-25   Contributing operator ' s payment  

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

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

Example:

Assume the same facts as in the example in section 80-20 . The contributing operator who issued 1 of the 3 policies covering the vehicles in the accident makes a payment to the managing operator.

For the purposes of Division 78 or 79 , the payment (except to the extent that it represents a managing operator ' s fee) will be treated as being made by the contributing operator under the insurance policy that it issued.

(3)    
If the * contributing operator is a party to the * insurance policy settlement sharing arrangement because it issued 2 or more * insurance policies , the * contributing operator ' s payment is treated as a payment or supply, made by the contributing 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.