Commonwealth Consolidated Acts

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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 80.20

Managing operator's payments or supplies

  (1)   For the purposes of Divisions   78 and 79, a * managing operator's payment or supply is treated as follows.

  (2)   If the * managing operator is a party to the * insurance policy settlement sharing arrangement because it issued only one * insurance policy, the * managing operator's payment or supply is treated as a payment or supply, made by the managing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy.

  (3)   If the * managing operator is a party to the * insurance policy settlement sharing arrangement because it issued 2 or more * insurance policies, the * managing operator's payment or supply is treated as a payment or supply made by the managing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions.

Example:   3 vehicles are involved in an accident, 2 of which are covered by insurance policies issued by the managing operator and the other by a policy issued by a contributing operator. The managing operator makes a payment in settlement of a claim by an insured person in respect of the accident.

  For the purposes of Division   78 or 79, half of the payment will be treated as being made under each of the policies issued by the managing operator.


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