GST and CTP
Compulsory Third Party (CTP) insurance is provided by licensed insurers and the applicable CTP insurance premium for your vehicle is listed on your renewal notice. This premium includes the Goods and Services Tax (GST).
For policies commencing on or after 1 July 2003, you may be entitled to claim an input tax credit on the GST component of your CTP premium, if you are GST registered.
The Commonwealth Government introduced GST transitional provisions into legislation from 1 July 2000, to operate for a period of three years. These provisions had the effect of preventing those persons who were registered for GST purposes from claiming an input tax credit on GST paid on their CTP premiums. The GST transitional provisions ceased to have effect for CTP policies with a commencement date from 1 July 2003. From this date those persons registered for GST purposes are now entitled to claim an input tax credit on GST paid on their CTP premium.
Premiums are priced differently depending on the GST registered status of the insured and are higher for those persons with an entitlement to claim an input tax credit. This is due to the increase in claims costs for CTP insurers on GST registered vehicles as a result of changes to the GST legislation.
If you require further information about the effect of the GST transitional rules on your CTP insurance, contact the Australian Taxation Office, Tax Reform Information Line on 13 24 78, or your tax adviser.
For general information about your CTP insurance, contact the CTP insurer shown on your Certificate of Registration.
For a list of the current licensed CTP insurers and their contact details, go to Licensed Insurers.
Click here for more information on GSTLast reviewed 19 April 2012
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