GST issues registers

Insurance industry partnership

15 Excesses

Issue

If an excess is paid to an insurer before the claims settlement is made, is it still included in the calculation of the settlement amount under section 78-15 once a claims settlement is made?

Non-interpretative - straight application of the law.

ATO view

Yes. The method statement in section 78-15 is not limited to excesses paid after or at the same time as the claims settlement.

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