The purpose of this Handbook is to explain how the Goods and Services Tax (GST) rules impact on the insurance industry - insurers and the insured - in Australia. In some cases, the discussion is about the standard GST rules as they apply to the insurance industry. In other cases, the Handbook discusses some special GST rules which have a particular impact on the industry. Ideally, this Handbook should be read in conjunction with the GST Compliance Handbook, by the same author and published by Information Exchange Corporation Pty Ltd.

The purpose of that Handbook is to explain the main rules which determine how businesses which are within the GST net must comply with their obligations under the tax. It therefore complements the more specific commentary in this Handbook. Both this Handbook and the GST Compliance Handbook are components in a series of Handbooks published by Information Exchange Corporation Pty Ltd, each dealing with the impact of the GST on a particular industry, profession or economic grouping.

This publication is, in essence, a lightly-edited reprint of extracts from The GST Industries Manual (Information Exchange Corporation Pty Ltd, Sydney, June 2003). This publication reflects all developments known to the author as at 22 November 2005.

A note of caution

This publication deals with the Goods and Services Tax as it impacts upon the industry industry in Australia.

It must always be kept in mind that there are other taxes and duties which also apply to business transactions of every kind, including income tax, and state stamp duties and land taxes. There is no scope in this book for more than the occasional hint about the possible impact of other imposts, but readers should remain alert to the possibility.

In real life, the effect of all of the relevant taxes and duties should be factored into every business transaction.

B.J.Egan
Sirius Information Services
November 2005.