Indirect Tax Legislation Amendment Act 2000 (92 of 2000)
Schedule 8 Insurance
A New Tax System (Goods and Services Tax) Act 1999
2 Subsection 78-15(4) (method statement)
Repeal the method statement, substitute:
Step 1. Add together:
(a) the sum of the payments of *money (if any) made in settlement of the claim; and
(b) the *GST inclusive market value of the supplies (if any) made by the insurer in settlement of the claim (other than supplies that would have been *taxable supplies but for section 78-25).
Step 2. If any payments of excess were made to the insurer under the *insurance policy in question, subtract from the step 1 amount the sum of all those payments.
Step 3. Multiply the step 1 amount, or (if step 2 applies) the step 2 amount, by the following:
extent of input tax credit has the meaning given by subsection (2).