79‑15 Application of sections 78‑10 and

79‑15 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.