Test the policy and policyholder
Deemed input tax requires an insured-event cash payment under a standard-rated policy with coverage beginning from 1 January 2007. The policyholder must meet a prescribed category, such as being unregistered at the policy’s effective date or having the specified regulatory block on premium input tax. Third-party claim recipients do not replace the policyholder test. Obtain the required policyholder declaration for affected policies from 1 October 2021.
Calculate and document the claim
Use the GST fraction at the rate applying to the relevant premium, even if payment occurs after a rate change. Calculate on actual cash paid after excess, retain policy and payment evidence and report eligible deemed input tax in Box 7 without a corresponding Box 5 purchase. Reverse claims for payments cancelled or recovered where required. Repairs contracted directly by the insurer require their separate input-tax conditions and supporting invoices.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
Read the official PDF ↗