Tax and Superannuation Laws Amendment (2012 Measures No.1) Act 2012 received royal assent on 27 June 2012

Summary

• In the 2011-12 Budget the Government announced that it would amend the GST to ensure that certain supplies made to health insurers in the course of settling health insurance claims are GST-free.  The measure is in response to the decision of the Full Federal Court in Commissioner of Taxation v Secretary to the Department of Transport (Victoria) [2010] FCAFC 84.
• The proposed amendment is intended to restore the underlying policy intention of the GST law by treating certain supplies by a health are provider to an insurer in settlement of an insurance claims GST-free.  It will also clarify that supplies made under a compulsory third party scheme or to an Australian government agency are GST-free supplies, where there underlying supply of health related goods or services to the individual are GST-free
• The measure takes effect from 1 July 2010

Links to documents

Legislation

• Tax and Superannuation Laws Amendment (2012 Measures No.1) Act 2012
• Explanatory Memorandum

Exposure Draft legislation

• Exposure Draft Bill – 21 November 2011
• Explanatory Memorandum to exposure draft

Consultation process

• Consultation Paper – GST and Certain Supplies to Health Insurers – 7 June 2011