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Do you need advice on GST, Insurance Excesses & how this affects your BAS?

Is GST redeemable on an insurance excess?

Can a client claim a GST credit for an excess payment?

ATO's advices below - they directed us to the following website which has this within it 2/3 down the webpage:

Payment of an excess to an insurer

If you pay an excess to your insurer, you cannot claim GST credits on that excess. Do not report the amount of the excess at G11 (non-capital purchases).

Do not report any GST credits at 1B (GST on purchases).

Payment of an excess to someone other than an insurer (eg repairer)

If you pay an excess to someone other than your insurer, you can claim a GST credit for the GST you pay in the price of the excess if:

  • the party you pay is not acting as an agent for your insurer
  • there is GST included in the amount you pay
  • you receive a tax invoice. collapse

Therefore – your excess payable to the insurer will NOT have GST redeemable.