A New Tax System (Goods and Services Tax) Act 1999
Note:Division 78 - Insurance Subdivision 78-C - Third parties 78-70 Payments etc. to third parties by insured entities (1)
The making of any payment by an entity to another entity is not to be treated as * consideration for a supply to the entity by that other entity, to the extent that:
(a) the payment is to discharge a liability of the entity to that other entity; and
(b) the payment is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability. (2)
The making of any supply by an entity to another entity:
(a) is not to be treated as a * taxable supply by the entity; and
(b) is not to be treated as * consideration for a supply to the entity by that other, or any other, entity;
to the extent that:
(c) the supply is to discharge a liability of the entity to that other entity; and
(d) the supply is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability. (3)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-15 (which is about consideration).
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