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TJH2(Newbie)Newbie
26 Mar 2025

A vehicle was deemed a total loss and the agreed sum insured was 27608.21

The insurer however deducted 2760.821 (10%) from the claim amount and settled at $24,847.38

  • Client is GST registered
  • Vehicle is 100 percent business use
  • SBTO was used at initial purchase of vehicle


How do we report this onto the quarterly BAS/tax return and can we claim back the amount deducted by the insurer?

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AriATO(Community Support)Community Support
8 Apr 2025

Hi @TJH2


Did you claim depreciation for the vehicle? You may need to do a balancing adjustment with the settlement amount your proceeds. Check out Disposing or ceasing to use a depreciating asset. The result will either be a deduction on income on your tax return.


The way GST and insurance settlements work is tricky. I recommend getting advice from our GST team. You can send a secure mail message via online services.

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