A New Tax System (Goods and Services Tax) Act 1999
78‑18 Increasing adjustments for payment78‑18 Increasing adjustments for payments of excess under insurance policies
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78‑18 Increasing adjustments for payments of excess under insurance policies
(1) An insurer has an increasing adjustment if: (a) there is a payment of an excess to the insurer under an *insurance policy; and (b) the insurer makes, or has made, payments or supplies in settlement of a claim under the policy; and (c) the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim. (2) The amount of the increasing adjustment is 1/11 of the amount that represents the extent to which the payment of excess relates to *creditable acquisitions and *creditable importations made by the insurer directly for the purpose of settling the claim. (3) An insurer has an increasing adjustment if: (a) there is a payment of an excess to the insurer under an *insurance policy; and (b) the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim; and (c) the insurer has not made any payments or supplies in settlement of the claim. The amount of the increasing adjustment is 1/11 of the amount of the payment of the excess.