Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 78.70

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

                     (a)  the payment is to discharge a liability of the entity to that other entity; and

                     (b)  the payment is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability.

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

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

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

to the extent that:

                     (c)  the supply is to discharge a liability of the entity to that other entity; and

                     (d)  the supply is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability.

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