Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 78.70

  (1)   The making of any payment by an entity to another entity is not to be treated as * consideration for a supply to the entity by that other entity, to the extent that:

  (a)   the payment is to discharge a liability of the entity to that other entity; and

  (b)   the payment is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability.

  (2)   The making of any supply by an entity to another entity:

  (a)   is not to be treated as a * taxable supply by the entity; and

  (b)   is not to be treated as * consideration for a supply to the entity by that other, or any other, entity;

to the extent that:

  (c)   the supply is to discharge a liability of the entity to that other entity; and

  (d)   the supply is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability.

  (3)   This section has effect despite section   9 - 5 (which is about what are taxable supplies) and section   9 - 15 (which is about consideration).