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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 78 - Insurance

Subdivision 78-A - Insurers

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78-18  Increasing adjustments for payments of excess under insurance policies

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(1)

An insurer has an increasing adjustment if:

(a) there is a payment of an excess to the insurer under an *insurance policy; and

(b) the insurer makes, or has made, payments or supplies in settlement of a claim under the policy; and

(c) the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim.

(2)

The amount of the increasing adjustment is 1/11 of the amount that represents the extent to which the payment of excess relates to *creditable acquisitions and *creditable importations made by the insurer directly for the purpose of settling the claim.

(3)

An insurer has an increasing adjustment if:

(a) there is a payment of an excess to the insurer under an *insurance policy; and

(b) the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim; and

(c) the insurer has not made any payments or supplies in settlement of the claim.

The amount of the increasing adjustment is 1/11 of the amount of the payment of the excess.

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History S 78-18 inserted by No 156 of 2000, s 3 and Sch 6 item 21, applicable in relation to net amounts for tax periods starting on or after 17 August 2000.