Loading
sammo433(Newbie)Newbie
26 Aug 2024

Hi,


I had an accident in which my car was written off(total loss). I used that car for Ride-share and I did claim about 93% Income Tax Credits under my ABN. Now the insurance company asking to provide the % ITCE and they also mentioned they will deduct the amount from the payout. Initially they agreed to payout $35600 and then they said they will deduct $384 for CTP and registration. And now they stating that they also deduct around $3700 as I claimed 93%. So can I claim back that amount through Tax? Are they entitled to deduct the amount from the payout. I have to pay to my financial service as my car was financed. Can you please explain?

3,179 views
3 replies
3,179 views
3 replies

Most helpful response

Most helpful reply

TobyJDodd(Devotee)Registered Tax Professional
26 Aug 2024

HI @sammo433


You were eligible to claim the ITC back when you purchased the car.


Therefore, it would be double dipping for the insurance company to have to pay you the GST credit.


Toby



All replies

Most helpful reply

TobyJDodd(Devotee)Registered Tax Professional
26 Aug 2024

HI @sammo433


You were eligible to claim the ITC back when you purchased the car.


Therefore, it would be double dipping for the insurance company to have to pay you the GST credit.


Toby



Liked by sammo433
sammo433(Newbie)Newbie
26 Aug 2024

@TobyJDodd

hi Toby,


thank you for the update but I’m still confused here. So I can ask the insurance company not to deduct ITC amount ? Or I’m entitled to pay that amount? Can I claim back?


sorry for the inconvenience. Thank you

Matt_ATO(Community Support)Community Support
27 Aug 2024

Howdy @samm0433,


The amount deducted by the insurance company ($3,700) is related to the GST credits you previously claimed. You can't claim this amount back through your tax return. Because it reflects the GST credits you already benefited from.


When you claimed GST credits on the car’s expenses. You effectively reduced your GST liability. The insurance payout adjustment ensures you don’t receive a double benefit.


Compensation and insurance payments

Featured articles

Setting up an ATO payment plan

5 Nov 2025 · 6 min read time

Tax tips for social media influencers and content creators

22 Apr 2024 · 3 min read time

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    327 likes

  2. PayrollDeanne

    (Taxicorn)

    318 likes

  3. Bruce4Tax

    (Taxicorn)

    192 likes

  4. YellowPotato

    (Taxicorn)

    145 likes

  5. Peter_Clyne

    (Superuser)

    101 likes

Top contributors

  1. PayrollDeanne

    (Taxicorn)

    1328contributions

  2. Taxduck

    (Taxicorn)

    1311contributions

  3. YellowPotato

    (Taxicorn)

    580contributions

  4. Bruce4Tax

    (Taxicorn)

    526contributions

  5. YEP

    (Devotee)

    280contributions

Loading
Income Tax Credits for written off car | ATO Community