Commonwealth Consolidated Acts

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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 72.5

Taxable supplies without consideration

  (1)   The fact that a supply to your * associate is without * consideration, does not stop the supply being a * taxable supply if:

  (a)   your associate is not * registered or * required to be registered; or

  (b)   your associate acquires the thing supplied otherwise than solely for a * creditable purpose.

  (2)   This section has effect despite paragraphs 9 - 5(a) and 84 - 5(1)(a) (which would otherwise require a taxable supply to be for consideration).

  (3)   However, this section does not apply to any supply that is constituted by an insured entity settling a claim under an * insurance policy or by an entity (other than an * operator) settling a claim under a * compulsory third party scheme.



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