Private ruling: GST
Date of advice: 17 October 2018
Published: December 2018

Ruling: Q1: Is the payment of excess by a protection holder to Entity A, in connection with a claim being settled under a protection issued by Entity A, consideration for a taxable supply by Entity A? | A1: No, the payment of excess by a member is not consideration for a taxable supply made by Entity A. This includes where Entity A debits the member’s account for the amount of the excess, or the member pays a third party (e.g. a repairer) the excess at Entity A’s direction. It also includes when the member does not pay the excess, but bears the first part of the relevant loss, for example, when the excess is deducted by Entity A in calculating the cash settlement paid to the member.


Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-15(1)(a) | A New Tax System (Goods and Services Tax) Act 1999 Division 78 | A New Tax System (Goods and Services Tax) Regulations 1999 subregulation 40-5.09(3)


Subject: GST: The Commissioner has ruled on the following question: