If you have suffered an insurable loss and you have received an insurance claim payout, you will need to enter the claim payout amount in your cashbook.
If you have paid for a repair and have out of pocket expenses you need to claim, follow these instructions to enter the transactions in your cashbook in the normal manner.
Here is an example of the information you might receive from your insurance company when you receive a payout:
|
CLAIM # 123123 |
|
|
Claim Item: New side window for Landcruiser |
$294.50 |
|
Less GST component that you will be entitled to claim back from the ATO as an input tax credit |
- $26.77 |
|
Less Excess |
- $100.00 |
|
Payout amount |
$194.50 |
In the above situation, the GST of $26.77 refers to the GST you can claim from the ATO when you pay the supplier for the new window $294.50.
It is our understanding that the GST (input tax credits) cannot be claimed on insurance claims. *
To record the above claim, follow these instructions and record as below
Code GST Category Amount
Insurance Recovery GST Free $194.50
*Important: All matters pertaining to taxation advise are given subject to confirmation with a qualified accountant. Customer Service Officers cannot be held responsible for any advice given that has not been verified.
Comments