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Application of sections 78-10 and 78-15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement

             (1)  This section applies to a payment or supply if:

                     (a)  it is a payment or supply made under a * compulsory third party scheme; and

                     (b)  the payment or supply is made in settlement of a claim under an * insurance policy; and

                     (c)  there is only one * operator who issues insurance policies under the scheme; and

                     (d)  assuming the requirements of paragraph 78-10(2)(b) were satisfied, the operator would have a * decreasing adjustment under section 78-10 in respect of the payment or supply; and

                     (e)  an election under subsection (4) is in force during the * financial year in which the payment or supply is made.

             (2)  For the purposes of section 78-10, the * operator has a * decreasing adjustment under that section in relation to the payment or supply.

             (3)  Section 78-15 does not apply to the * decreasing adjustment, but its amount is instead worked out using the applicable * average input tax credit fraction (see section 79- 95).

             (4)  The * operator may, in writing, elect that, from the start of a specified * financial year, any * decreasing adjustment in relation to all payments or supplies:

                     (a)  that are made during the financial year; and

                     (b)  to which paragraphs (1)(a), (b), (c) and (d) apply;

are to be worked out using the applicable * average input tax credit fraction.

             (5)  Subject to subsection (6), the election must be made before the start of the specified * financial year.

             (6)  Subsection (5) does not apply if the election specifies the * financial year beginning on 1 July 2003 and is made before the end of 30 days after the day on which this section commences.

             (7)  The election is in force during the specified * financial year and every later financial year, other than one that begins after a financial year in which the election is revoked.

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