Taxation Laws Amendment Act (No. 8) 2000 (156 of 2000)

Schedule 6   Other amendments

A New Tax System (Goods and Services Tax) Act 1999

21   After section 78-15

Insert:

78-18 Increasing adjustments for payments of excess under insurance policies

(1) An insurer has an increasing adjustment if:

(a) there is a payment of an excess to the insurer under an*insurance policy; and

(b) the insurer makes, or has made, payments or supplies in settlement of a claim under the policy; and

(c) the insurer makes, or has made,*creditable acquisitions or*creditable importations directly for the purpose of settling the claim.

(2) The amount of the increasing adjustment is1/11 of the amount that represents the extent to which the payment of excess relates to*creditable acquisitions and*creditable importations made by the insurer directly for the purpose of settling the claim.

(3) An insurer has an increasing adjustment if:

(a) there is a payment of an excess to the insurer under an*insurance policy; and

(b) the insurer makes, or has made,*creditable acquisitions or*creditable importations directly for the purpose of settling the claim; and

(c) the insurer has not made any payments or supplies in settlement of the claim.

The amount of the increasing adjustment is1/11 of the amount of the payment of the excess.