Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 78.100

  (1)   Subsection   38 - 60(1) and this Division apply in relation to a payment or supply made in settlement of a claim for compensation under a * statutory compensation scheme in the same way that they apply to a payment or supply made in settlement of a claim under an * insurance policy.

Note:   Subsection   38 - 60(1) provides that certain supplies to insurers are GST - free.

  (2)   For the purposes of the application of subsection   38 - 60(1) and this Division in relation to such a payment or supply:

  (a)   the claim for compensation under the scheme is treated as a claim under an * insurance policy; and

  (b)   the entity operating the scheme is treated as the insurer; and

  (c)   an entity is treated as the entity insured if:

  (i)   the entity's payment of premiums, contributions or similar payments under the scheme, or payment of levy in connection with the scheme; or

  (ii)   the entity's liability to pay premiums, contributions or similar payments under the scheme, or liability to pay levy in connection with the scheme;

    enabled the claim for compensation to arise; and

  (ca)   those payments that that entity makes or is liable to make are treated as a premium it has paid; and

  (d)   the supply of membership of, or participation in, the scheme is treated as the supply of an * insurance policy.

  (3)   However, if the entity treated as the entity insured:

  (a)   is liable to make payments referred to in paragraph   (2)(c); and

  (b)   has not made all those payments;

for the purposes of sections   78 - 10 and 78 - 15, the entity's entitlement to an input tax credit for the premium paid is taken to be what its entitlement would have been if it had made all those payments.