A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 78.65 Payments etc. to third parties by insurers

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 78.65

  (1)   The making of any payment by an insurer to an entity is not treated as * consideration for a supply to the insurer by the entity, to the extent that:

  (a)   the payment is made in settlement of a claim under an * insurance policy under which the entity is not insured; and

  (b)   the payment is to discharge a liability owed to that entity by the entity insured.

  (2)   The making of any supply by an insurer to an entity:

  (a)   is not to be treated as a * taxable supply by the insurer; and

  (b)   is not to be treated as * consideration for a supply to the insurer by the entity, or any other entity;

to the extent that:

  (c)   the supply is made in settlement of a claim under an * insurance policy under which the entity is not insured; and

  (d)   the supply is to discharge a liability owed to that entity by the entity insured.

  (3)   This section has effect despite section   9 - 5 (which is about what are taxable supplies) and section   9 - 15 (which is about consideration).