Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 80.5

Meaning of insurance policy settlement sharing arrangement

             (1)  An insurance policy settlement sharing arrangement is an arrangement:

                     (a)  that relates to an accident or other incident or 2 or more related accidents or other incidents; and

                     (b)  to which the parties are the * operators of a * compulsory third party scheme or schemes who have issued * insurance policies to persons involved in the accidents or incidents; and

                     (c)  under which:

                              (i)  one party (the managing operator ) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme or one of the compulsory third party schemes, relating to the accidents or incidents; and

                             (ii)  each other party (a contributing operator ) is to make a payment to the * managing operator in respect of that operator settling the claim.

Meaning of managing operator's payment or supply

             (2)  If a payment or supply mentioned in subparagraph (1)(c)(i) is not a * CTP ancillary payment or supply, it is a managing operator's payment or supply .

Meaning of contributing operator's payment

             (3)  A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the * managing operator for managing the process of making settlements under the arrangement, is a contributing operator's payment .