A T O home
Legal Database
Access the database 
Browse database
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version

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  


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    View history reference

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

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

 View history reference


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.


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


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).


 View history reference
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.


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


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.


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.


This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page