A New Tax System (Goods and Services Tax) Act 1999
Note:Division 79 - Compulsory third party schemes Subdivision 79-A - Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies 79-15 Application of sections 78-10 and 78-15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement (1)
This section applies to a payment or supply if:
(a) it is a payment or supply made under a * compulsory third party scheme ; and
(b) the payment or supply is made in settlement of a claim under an * insurance policy ; and
(c) there is only one * operator who issues insurance policies under the scheme; and
(d) assuming the requirements of paragraph 78-10(2)(b) were satisfied, the operator would have a * decreasing adjustment under section 78-10 in respect of the payment or supply; and
(e) an election under subsection (4) is in force during the * financial year in which the payment or supply is made. (2)
For the purposes of section 78-10 , the * operator has a * decreasing adjustment under that section in relation to the payment or supply. (3)
Section 78-15 does not apply to the * decreasing adjustment , but its amount is instead worked out using the applicable * average input tax credit fraction ( see section 79-95 ). (4)
The * operator may, in writing, elect that, from the start of a specified * financial year , any * decreasing adjustment in relation to all payments or supplies:
(a) that are made during the financial year; and
(b) to which paragraphs (1)(a), (b), (c) and (d) apply;
are to be worked out using the applicable * average input tax credit fraction .
Subject to subsection (6), the election must be made before the start of the specified * financial year . (6)
Subsection (5) does not apply if the election specifies the * financial year beginning on 1 July 2003 and is made before the end of 30 days after the day on which this section commences. (7)
The election is in force during the specified * financial year and every later financial year, other than one that begins after a financial year in which the election is revoked.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.