| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012976276201
Date of advice: 25 February 2016
Ruling
Subject: GST and extension of a compulsory third party insurance scheme to cover no fault claims.
Question
Will extending an at fault Compulsory Third Party scheme to cover no fault claims be treated as a Compulsory Third Party (CTP) scheme for Goods and Services Tax (GST) purposes, as per the definition of a CTP scheme in section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act).
Answer
Yes
Based on the information you provided, such an extension is a compulsory third party scheme or arrangement, established by an Australian law and of a kind specified in the regulations made for the purposes of the definition in section 195-1 of the GST Act.
This ruling applies for the following periods:
1 July 2016 until revoked.
The scheme commences on:
1 July 2016
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
Where a government agency provides a compulsory third party scheme specified in schedule 11 of regulation 195-1.01 of A New Tax System (Goods and Services Tax) Regulations 1999 (the GST Regulations). And where:
• it is proposed to extend the scheme to cover cases where fault against driver of a particular state has not been established where the person has been catastrophically injured.in a road accident and
• It will be funded through increased compulsory third party insurance premiums.
Relevant legislative provisions
Sections 78-95 to 78-115, Division 79, Section 195-1 of the GST Act and Regulation 195-1.01 (schedule 11) of the GST Regulations.
Reasons for decision
The proposed extension to the existing compulsory third party scheme to cover no fault claims is a scheme or arrangement:
(a) that is established by an *Australian law; and
(b) is of a kind specified in the regulations.