78‑100 Settlements of claims for compens78‑100 Settlements of claims for compensation under statutory compensation schemes

78‑100 Settlements of claims for compensation under statutory compensation schemes

(1) Subsection 38‑60(1) and this Division apply in relation to a payment or supply made in settlement of a claim for compensation under a *statutory compensation scheme in the same way that they apply to a payment or supply made in settlement of a claim under an *insurance policy.

Note: Subsection 38‑60(1) provides that certain supplies to insurers are GST‑free.

(2) For the purposes of the application of subsection 38‑60(1) and this Division in relation to such a payment or supply: (a) the claim for compensation under the scheme is treated as a claim under an *insurance policy; and (b) the entity operating the scheme is treated as the insurer; and (c) an entity is treated as the entity insured if: (i) the entity’s payment of premiums, contributions or similar payments under the scheme, or payment of levy in connection with the scheme; or (ii) the entity’s liability to pay premiums, contributions or similar payments under the scheme, or liability to pay levy in connection with the scheme; enabled the claim for compensation to arise; and (ca) those payments that that entity makes or is liable to make are treated as a premium it has paid; and (d) the supply of membership of, or participation in, the scheme is treated as the supply of an *insurance policy. (3) However, if the entity treated as the entity insured: (a) is liable to make payments referred to in paragraph (2)(c); and (b) has not made all those payments; for the purposes of sections 78‑10 and 78‑15, the entity’s entitlement to an input tax credit for the premium paid is taken to be what its entitlement would have been if it had made all those payments.