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 78 - Insurance  

Subdivision 78-A - Insurers  

78-40   Adjustment events relating to decreasing adjustments under this Division  

Division 19 applies in relation to a * decreasing adjustment that an insurer has under this Division as if:

(a) the adjustment were an input tax credit; and

(b) the settlement of the claim to which the adjustment relates were a * creditable acquisition that the insurer made; and

(c) any payment or supply made by another entity, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of the * insurance policy in question, were a reduction in the * consideration for the acquisition.


Paragraph (1)(c) does not apply to a payment by another entity in relation to which an * increasing adjustment arises under section 80-30 or 80-70 (which are about settlement sharing arrangements).

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