Commonwealth Consolidated Acts

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).