Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:11_18:p13
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 11 cl 18 (pt 13/18)
Character Range: 133929–136763

(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 acquisition).

80‑20  Managing operator's payments or supplies

 (1) For the purposes of Divisions 78 and 79, a *managing operator's payment or supply is treated as follows.

 (2) If the *managing operator is a party to the *insurance policy settlement sharing arrangement because it issued only one *insurance policy, the *managing operator's payment or supply is treated as a payment or supply, made by the managing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy.

 (3) If the *managing operator is a party to the *insurance policy settlement sharing arrangement because it issued 2 or more *insurance policies, the *managing operator's payment or supply is treated as a payment or supply made by the managing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions.

Example: 3 vehicles are involved in an accident, 2 of which are covered by insurance policies issued by the managing operator and the other by a policy issued by a contributing operator. The managing operator makes a payment in settlement of a claim by an insured person in respect of the accident.

 For the purposes of Division 78 or 79, half of the payment will be treated as being made under each of the policies issued by the managing operator.

80‑25  Contributing operator's payment

 (1) For the purposes of Divisions 78 and 79, a *contributing operator's payment is treated as follows.

 (2) If the *contributing operator is a party to the *insurance policy settlement sharing arrangement because it issued only