Insuance payout - Insurance company doesn't pay the 10% GST we were charged

Discussion in 'Legal Issues' started by thesuperman, 24th Feb, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. thesuperman

    thesuperman Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    460
    Location:
    Australia
    If you own a commercial property and claim from your insurance company for work done by certain tradies, why is it that an insurance company doesn't pay you the full amount of all those invoices claimed? They deduct the 10% GST from the payment amount and also their excess fee. Why is this? is this correct?
     
    thesuperman, 24th Feb, 2020
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,001
    Location:
    Australia wide
    whats your contract with the insurance company say?

    Could you not claim the GST?
     
    Terry_w, 24th Feb, 2020
    #2
    Marg4000 likes this.
  3. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,598
    Location:
    Melbourne
    Sounds like they have assumed you can claim the gst as commercial.
    Their payout is ex-gst. Ie the net result.
    Insurers often do this with our work insurance claims (cars etc).
    Best to check with your insurer.
     
    craigc, 29th Feb, 2020
    #3
    Marg4000 likes this.
  4. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,421
    Location:
    Qld
    You have paid the gst - don’t you claim credit for this on your tax forms?
    If so, the insurance company won’t let you profit by paying it to you again.
     
    Marg4000, 29th Feb, 2020
    #4
    Perp, Propertunity and Terry_w like this.