Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subsection 38 - 60(1) and this Division apply in relation to a payment or supply made in settlement of a claim for compensation under a * statutory compensation scheme in the same way that they apply to a payment or supply made in settlement of a claim under an * insurance policy.
Note: Subsection 38 - 60(1) provides that certain supplies to insurers are GST - free.
(2) For the purposes of the application of subsection 38 - 60(1) and this Division in relation to such a payment or supply:
(a) the claim for compensation under the scheme is treated as a claim under an * insurance policy; and
(b) the entity operating the scheme is treated as the insurer; and
(c) an entity is treated as the entity insured if:
(i) the entity's payment of premiums, contributions or similar payments under the scheme, or payment of levy in connection with the scheme; or
(ii) the entity's liability to pay premiums, contributions or similar payments under the scheme, or liability to pay levy in connection with the scheme;
enabled the claim for compensation to arise; and
(ca) those payments that that entity makes or is liable to make are treated as a premium it has paid; and
(d) the supply of membership of, or participation in, the scheme is treated as the supply of an * insurance policy.
(3) However, if the entity treated as the entity insured:
(a) is liable to make payments referred to in paragraph (2)(c); and
(b) has not made all those payments;
for the purposes of sections 78 - 10 and 78 - 15, the entity's entitlement to an input tax credit for the premium paid is taken to be what its entitlement would have been if it had made all those payments.