Taxation Laws Amendment Act (No. 6) 2003 (67 of 2003)

Schedule 11   GST amendments relating to compulsory third party schemes

A New Tax System (Goods and Services Tax Transition) Act 1999

42   At the end of section 22

Add:

(3) The settlement of a claim for compensation does not give rise to any adjustment, and is not a taxable supply, under Division 79 or 80 of the GST Act to the extent that the event giving rise to the claim happened before 1 July 2000.

(4) However, if:

(a) the claim is one mentioned in section 79-25 of the GST Act and the insurance policy concerned covers a period that started before 1 July 2000 and ends after that day; and

(b) it cannot be ascertained whether the event giving rise to the claim happened before 1 July 2000;

subsection (3) does not apply and the settlement does not give rise to any adjustment, and is not a taxable supply, under Division 79 or 80 of the GST Act if the claim was made before 1 July 2000.

Note: The heading to section 22 is replaced by the heading " Event before 1 July 2000 giving rise to claim ".