Document ID: chunk:federal_register_of_legislation:C2025C00126:section:4:p12
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 4 (pt 12/42)
Character Range: 454077–456795

the insurer makes, or has made, payments or supplies in settlement of a claim under the policy; and
 (c) the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim.
 (2) The amount of the increasing adjustment is 1/11 of the amount that represents the extent to which the payment of excess relates to *creditable acquisitions and *creditable importations made by the insurer directly for the purpose of settling the claim.
 (3) An insurer has an increasing adjustment if:
 (a) there is a payment of an excess to the insurer under an *insurance policy; and
 (b) the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim; and
 (c) the insurer has not made any payments or supplies in settlement of the claim.
The amount of the increasing adjustment is 1/11 of the amount of the payment of the excess.

78‑20  Settlements of insurance claims do not give rise to creditable acquisitions
 (1) If, in settlement of a claim under an *insurance policy, an insurer makes one or more of the following:
 (a) a payment of *money;
 (b) a payment of *digital currency;
 (c) a supply;
the payment or supply is not treated as *consideration for an acquisition made by the insurer.
 (2) This section has effect despite section 11‑5 (which is about what is a creditable acquisition).

78‑25  Supplies in settlement of claims are not taxable supplies
 (1) A supply that an insurer makes in settlement of a claim under an *insurance policy is not a *taxable supply.
 (2) This section has effect despite section 9‑5 (which is about what are taxable supplies).

78‑30  Acquisitions by insurers in the course of settling claims under non‑taxable policies
 (1) An acquisition is not a *creditable acquisition if:
 (a) the insurer makes the acquisition:
 (i) to the extent that the acquisition is an acquisition of goods—solely for the purpose of supplying the goods in the course of settling a claim under an *insurance policy; or
 (ii) otherwise—solely for a purpose directly related to settling a particular claim under an *insurance policy; and
 (b) the supply of the insurance policy by the insurer was *GST‑free.
 (2) This section has effect despite section 11‑5 (which is about what is a creditable acquisition).

78‑35  Taxable supplies relating to rights of subrogation
 (1) If, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of an *insurance policy, an entity that is not insured under the policy makes one or more of the following:
 (a) a payment of *money;
 (b) a payment of *digital currency;
 (c) a supply;
the payment or