Financial Services

Insurance

The University pays insurance premiums and receives settlements from insurance companies.

The settlement of a claim by an insurance company is not a taxable supply and therefore no GST will apply, provided you have advised that insurance company of your entitlement to claim input tax credits at the time of commencing the policy. Only the GST-exclusive amount must be requested from the insurance company when making a claim.

Premiums

  • General insurance premiums are subject to GST.
  • Health insurance premiums are GST-free.
  • Life insurance premiums are input-taxed.
  • Compulsory Third Party motor vehicle insurance premiums are subject to GST.

Overseas health insurance

As the University is merely an agent between the insurance company and the student, no GST will be accountable by the University when:

  • collecting premiums on behalf of the health insurance company from the students
  • paying premiums on behalf of the student to the health insurance company.

Payments of commissions and health insurance premiums to agents may or may not be subject to GST depending on:

  • the GST status of the agent
  • whether the agent is operating as a collecting agent or principal.

If GST is charged on a tax invoice then it may be claimed as an input tax credit.

If GST is not charged then no input tax credit is available.