Document ID: chunk:federal_register_of_legislation:C2025C00126:section:4:p10
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 4 (pt 10/42)
Character Range: 449068–451821

about the requirement to issue tax invoices).

75‑35  Approved valuations
 (1) The Commissioner may, by legislative instrument, determine in writing requirements for making valuations for the purposes of this Division.
 (2) A valuation made in accordance with those requirements is an approved valuation.

Division 78—Insurance

78‑1  What this Division is about
      Stamp duty is not included in working out the GST on insurance premiums. Insurers have decreasing adjustments which enable the net GST on insurance to reflect correctly their margins after settlements of claims are taken into account.
Note: Payments and supplies under compulsory third party schemes are dealt with in some cases under this Division and in others under Division 79 or 80.

Table of Subdivisions
78‑A Insurers
78‑B Insured entities etc.
78‑C Third parties
78‑D Insured entities that are not registered etc.
78‑E Statutory compensation schemes
78‑F Miscellaneous

Subdivision 78‑A—Insurers

78‑5  GST on insurance premiums is exclusive of stamp duty
 (1) The *value of a *taxable supply of an *insurance policy is worked out as if the *price of the supply were reduced by the amount of any stamp duty payable under a *State law or *Territory law in respect of the supply.
 (2) This section has effect despite section 9‑75 (which is about the value of taxable supplies).

78‑10  Decreasing adjustments for settlements of insurance claims
 (1) An insurer has a decreasing adjustment if, in settlement of a claim under an *insurance policy, the insurer makes one or more of the following:
 (a) a payment of *money;
 (b) a payment of *digital currency;
 (c) a supply.
 (2) However, this section only applies if:
 (a) the supply of the *insurance policy by the insurer was solely or partly a *taxable supply; and
 (b) either:
 (i) there was no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened; or
 (ii) there was an entitlement to such an input tax credit, but the amount of the input tax credit was less than the GST payable by the insurer for the taxable supply; and
 (c) the insurer settles the claim for a *creditable purpose; and
 (d) the insurer is *registered, or *required to be registered; and
 (e) the settlement does not relate solely to one or more *non‑creditable insurance events.
 (2A) In working out the amount of an input tax credit for the purposes of subparagraph (2)(b)(ii), disregard sections 131‑40 and 131‑50 (which are about amounts of input tax credits under the annual apportionment rules).
 (3) An event is a non‑creditable insurance event if the supply of an *insurance policy would not be a *taxable supply if it were only an insurance policy against loss,