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:

Method statement

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).