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

Part 5 - Special transitional rules  

23   Input tax credits relating to compulsory third party schemes  

You are not entitled to an input tax credit for:

(a) a premium, contribution or similar payment made under, or a levy paid in connection with, a compulsory third party scheme, if the premium, contribution or similar payment relates to a period commencing before 1 July 2003; or

(b) a premium paid, in respect of a period of cover commencing before 1 July 2003, on an insurance policy issued under a compulsory third party scheme.


It does not matter, for the purposes of subsection (1), whether the payment occurred before, on or after 1 July 2003.


If, because of subsection (1), you are not entitled to an input tax credit for an acquisition you make, section 29-70 of the GST Act (which is about tax invoices) does not apply in relation to the supply to which the acquisition relates.

A compulsory third party scheme is:

(a) a statutory compensation scheme; or

(b) a scheme or arrangement, established by an Australian law, under which insurance policies are issued;

that is specified in the regulations, or that is of a kind specified in the regulations.

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