Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An insurer has a decreasing adjustment if, in settlement of a claim under an * insurance policy, the insurer makes one or more of the following:
(a) a payment of * money;
(b) a payment of * digital currency;
(c) a supply.
(2) However, this section only applies if:
(a) the supply of the * insurance policy by the insurer was solely or partly a * taxable supply; and
(b) either:
(i) there was no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened; or
(ii) there was an entitlement to such an input tax credit, but the amount of the input tax credit was less than the GST payable by the insurer for the taxable supply; and
(c) the insurer settles the claim for a * creditable purpose; and
(d) the insurer is * registered, or * required to be registered; and
(e) the settlement does not relate solely to one or more * non - creditable insurance events.
(2A) In working out the amount of an input tax credit for the purposes of subparagraph (2)(b)(ii), disregard sections 131 - 40 and 131 - 50 (which are about amounts of input tax credits under the annual apportionment rules).
(3) An event is a non - creditable insurance event if the supply of an * insurance policy would not be a * taxable supply if it were only an insurance policy against loss, damage, injury or risk that relates to that event happening.