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Edited version of your written advice
Authorisation Number: 1012897937429
Date of advice: 22 October 2015
Ruling
Subject: GST and insurance
Question
Is Entity X, through the Fund, providing an 'insurance policy' to the participants for the purposes of Division 78 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Summary of advice provided
Division 78 of the GST Act contains the special rules that operate in respect of insurance. In most cases, the provisions under this Division operate where the supply or consideration is in respect of an insurance policy. The term 'insurance policy' is defined in section 195-1 of the GST Act. It is our view that in order for an instrument to be an "insurance policy" pursuant to section 195-1 of the GST Act it must be a policy of insurance under a contract or a law. Based on the facts provided, we consider that Entity X is providing an 'insurance policy' to the participants, for the purposes of Division 78 the GST Act.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Division 78
A New Tax System (Goods and Services Tax) Act 1999 Division 149
A New Tax System (Goods and Services Tax) Act 1999 Section 195-1