Document ID: chunk:federal_register_of_legislation:C2025C00126:section:4:p32
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 4 (pt 32/42)
Character Range: 503003–505952

1 July 2000.

Division 80—Settlement sharing arrangements

80‑1  What this Division is about
      A series of adjustments arise if, under an arrangement, an operator of a compulsory third party scheme settles a claim, arising from one or more accidents or other incidents, covered by the arrangement and other operators are obliged to contribute payments to that operator in respect of the settlement.

Table of Subdivisions
80‑A Insurance policy settlement sharing arrangements
80‑B Nominal defendant settlement sharing arrangements
80‑C Hybrid settlement sharing arrangements

Subdivision 80‑A—Insurance policy settlement sharing arrangements

80‑5  Meaning of insurance policy settlement sharing arrangement etc.

Meaning of insurance policy settlement sharing arrangement
 (1) An insurance policy settlement sharing arrangement is an arrangement:
 (a) that relates to an accident or other incident or 2 or more related accidents or other incidents; and
 (b) to which the parties are the *operators of a *compulsory third party scheme or schemes who have issued *insurance policies to persons involved in the accidents or incidents; and
 (c) under which:
 (i) one party (the managing operator) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme or one of the compulsory third party schemes, relating to the accidents or incidents; and
 (ii) each other party (a contributing operator) is to make a payment to the *managing operator in respect of that operator settling the claim.

Meaning of managing operator's payment or supply
 (2) If a payment or supply mentioned in subparagraph (1)(c)(i) is not a *CTP ancillary payment or supply, it is a managing operator's payment or supply.

Meaning of contributing operator's payment
 (3) A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the *managing operator for managing the process of making settlements under the arrangement, is a contributing operator's payment.

80‑10  Effect of becoming parties to industry deeds or entering into settlement sharing arrangements
 (1) An *operator of a *compulsory third party scheme does not make a *taxable supply by:
 (a) entering into, or becoming a party to, an *insurance policy settlement sharing arrangement; or
 (b) becoming a party to a deed created by or under a *State law or a *Territory law establishing a *compulsory third party scheme, that provides for an insurance policy settlement sharing arrangement.
 (2) This section has effect despite section 9‑5 (which is about what are taxable supplies).

80‑15  Effect of contributing operator's payment
 (1) A *contributing operator's payment is not treated as *consideration for a supply by the *managing operator, or for an acquisition by the *contributing operator.
 (2) This section has effect despite section 9‑15 (which is about consideration) and section 11‑5 (which is about what is a creditable