Insurers guide to the business activity statement instructions

This information will help you complete the goods and services tax (GST) section of your business activity statement. It includes a series of examples illustrating how to treat an insured event occurring on or after 1 July 2000, and how to complete your business activity statement.

This information is designed to be used in conjunction with GST - completing your activity statement (NAT 7392).

Colour-coded flowcharts are used to show the transactions associated with each example. The flowcharts show:

• acquisitions in red
• settlements and decreasing adjustments in green
• policy premiums in blue
• excess payments in pink
• increasing adjustments in grey, and
• subrogation and recoveries in dark red.

The following abbreviations are used in this guide.

BAS	business activity statement
DA	decreasing adjustment
IA	increasing adjustment
FSL	fire service levy
GST	goods and services tax
ITC	input tax credits

All division and section references used in this guide are to A New Tax System (Goods and Services Tax) Act 1999.

It is assumed in the examples that where the insurer contracts with a supplier, the requirements of GSTR 2006/10 Goods and services tax: insurance settlements and entitlements to input tax credits are met.

For more information about how to complete the GST section of your business activity statement: refer to GST - completing your activity statement (NAT 7392), or phone us on 13 28 66.

Purchase of insurance policy and reinstatement to the insured

Sections within Purchase of insurance policy and reinstatement to the insured

• Insured entitled to full input tax credit - no excess
• Insured entitled to full input tax credit - excess paid directly to insurer
• Insured entitled to full input tax credit - excess paid to supplier
• Insured entitled to partial input tax credit - no excess
• Insured entitled to partial input tax credit - excess paid to insurer
• Insured entitled to partial input tax credit - excess paid to third party
• Insured not entitled to input tax credit - no excess
• Insured not entitled to input tax credit - excess paid to insurer
• Insured not entitled to input tax credit - excess paid to supplier