Guide to goods and services tax (GST)

Insurance settlements

You do not generally have to pay GST on an insurance settlement, provided you tell the insurer before making the claim what proportion of the premium you can claim GST credits for. (You can claim GST credits on the part of the premium that relates to business purposes.)

If you do not tell your insurer before making the claim, you may have to pay GST when your claim is settled and you lodge a BAS.

The insurer will generally expect to cover you only for the actual loss - that is, the loss minus the amount of GST credits you can claim on the repair or replacement cost of the item insured.

Find out more: Insurance and GST.

Goods and services tax (GST) - home

Sections within When to charge GST (and when not to)

• Taxable sales
• GST-free sales
• Input-taxed sales
• Grants and sponsorship
• Insurance settlements