Document ID: chunk:federal_register_of_legislation:C2025C00126:section:4:p13
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 4 (pt 13/42)
Character Range: 456572–459274

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 supply is not treated as *consideration for a supply made by the insurer (whether or not the payment or supply is made to the insurer) or by the entity insured.
 (2) This section has effect despite section 9‑15 (which is about consideration).

78‑40  Adjustment events relating to decreasing adjustments under this Division
 (1) Division 19 applies in relation to a *decreasing adjustment that an insurer has under this Division as if:
 (a) the adjustment were an input tax credit; and
 (b) the settlement of the claim to which the adjustment relates were a *creditable acquisition that the insurer made; and
 (c) any payment or supply made by another entity, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of the *insurance policy in question, were a reduction in the *consideration for the acquisition.
 (2) Paragraph (1)(c) does not apply to a payment by another entity in relation to which an *increasing adjustment arises under section 80‑30 or 80‑70 (which are about settlement sharing arrangements).

78‑42  Adjustment events relating to increasing adjustments under section 78‑18
  Division 19 applies in relation to an *increasing adjustment that an insurer has under section 78‑18 as if:
 (a) payments of excess under an *insurance policy to which the adjustment relates were *consideration for a *taxable supply that the insurer made; and
 (b) the adjustment were the GST payable on the taxable supply; and
 (c) any refund of that payment of excess made by the insurer were a reduction in the consideration for the supply.

Subdivision 78‑B—Insured entities etc.

78‑45  Settlements of insurance claims do not give rise to taxable supplies
 (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 a supply made by the entity insured, or by any entity (other than the entity insured) that was entitled to an input tax credit for the premium paid for the insurance policy.
 (2) This section has effect despite section 9‑15 (which is about consideration).

78‑50  Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed
 (1) However, the payment or supply is treated as *consideration for a supply made by an entity if:
 (a) the entity paid all or a part of the