Private ruling: GST and extension of a compulsory third party insurance scheme to cover no fault claims.
Date of advice: 25 February 2016
Published: April 2016
Ruling period: 1 July 2016 until revoked.
Date scheme commenced: 1 July 2016

Ruling: Q1: Will extending an at fault Compulsory Third Party scheme to cover no fault claims be treated as a Compulsory Third Party ( CTP ) scheme for Goods and Services Tax ( GST ) purposes, as per the definition of a CTP scheme in section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 ( the GST Act ). | A1: Yes Based on the information you provided, such an extension is a compulsory third party scheme or arrangement, established by an Australian law and of a kind specified in the regulations made for the purposes of the definition in section 195-1 of the GST Act.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. Where a government agency provides a compulsory third party scheme specified in schedule 11 of regulation 195-1.01 of A New Tax System (Goods and Services Tax) Regulations 1999 (the GST Regulations) . And where: • it is proposed to extend the scheme to cover cases where fault against driver of a particular state has not been established where the person has been catastrophically injured.in a road accident and • It will be funded through increased compulsory third party insurance premiums.

Relevant legislative provisions: Sections 78-95 to 78-115, Division 79, Section 195-1 of the GST Act and Regulation 195-1.01 (schedule 11) of the GST Regulations.

Reasons for decision: Summary: The proposed extension to the existing compulsory third party scheme to cover no fault claims is a scheme or arrangement: (a) that is established by an *Australian law; and (b) is of a kind specified in the regulations.