Document ID: chunk:federal_register_of_legislation:C2025C00126:section:4:p22
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 4 (pt 22/42)
Character Range: 478510–481375

(e) if one or more *increasing adjustments (each being a notional section 78‑40 increasing adjustment) would have arisen, before the decreasing adjustment under paragraph (d) arose, under Division 19 because of section 78‑40 applying in relation to the notional decreasing adjustment, the amount of the decreasing adjustment under paragraph (d) is reduced by the sum of the notional section 78‑40 increasing adjustments; and
 (f) for the purposes of applying section 78‑40 after the decreasing adjustment arises under this subsection, that decreasing adjustment is taken to arise under Division 78.

Increasing adjustment
 (2) If:
 (a) subsection 79‑5(4) applies to a payment or supply; and
 (b) as a result, the *operator has a *decreasing adjustment (the original decreasing adjustment); and
 (c) after the *premium selection test was satisfied, the operator became or becomes aware that there actually was an entitlement to an input tax credit for some or all of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened;
then:
 (d) the operator has an increasing adjustment whose amount is, subject to paragraph (e), equal to the original decreasing adjustment; and
 (e) if one or more *increasing adjustments (each being a section 78‑40 increasing adjustment) arose, before the increasing adjustment under paragraph (d) arose, under Division 19 because of section 78‑40 applying in relation to the original decreasing adjustment, the amount of the increasing adjustment under paragraph (d) is reduced by the sum of the section 78‑40 increasing adjustments; and
 (f) after the increasing adjustment arises under paragraph (d), no adjustment arises under Division 19 because of section 78‑40 applying in relation to the original decreasing adjustment.

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