Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX TRANSITION) ACT 1999 - SECT 22

             (1)  The settlement of an insurance claim does not give rise to any adjustment, and is not a taxable supply, under Division 78 of the GST Act to the extent that the event giving rise to the claim happened before 1 July 2000.

             (2)  However, if:

                     (a)  the claim relates to an insurance policy covering a period that started before 1 July 2000 and ends after that day; and

                     (b)  it cannot be ascertained whether the event giving rise to the claim happened before 1 July 2000;

subsection (1) does not apply, and the settlement does not give rise to any adjustment, and is not a taxable supply, under Division 78 of the GST Act if the claim was made before 1 July 2000.

             (3)  The settlement of a claim for compensation does not give rise to any adjustment, and is not a taxable supply, under Division 79 or 80 of the GST Act to the extent that the event giving rise to the claim happened before 1 July 2000.

             (4)  However, if:

                     (a)  the claim is one mentioned in section 79‑25 of the GST Act and the insurance policy concerned covers a period that started before 1 July 2000 and ends after that day; and

                     (b)  it cannot be ascertained whether the event giving rise to the claim happened before 1 July 2000;

subsection (3) does not apply and the settlement does not give rise to any adjustment, and is not a taxable supply, under Division 79 or 80 of the GST Act if the claim was made before 1 July 2000.