There are three items that comprise your greenslip premium: base premium, MCIS Levies, and GST.
When purchasing a greenslip, insurers ask you whether you or your business is registered for GST. If you are uncertain of your GST status or entitlement to claim ITC’s, you should make a point to discuss with your accountant, financial advisor or tax agent.
When you purchase a CTP Green Slip Policy, you will be asked “Is anyone entitled to claim an Input Tax Credit on this Green Slip”. If you are registered for GST and you are entitled to claim an ITC you must answer ‘Yes’ to this question whether or not you will actually claim the ITC.
If you or your business is registered for GST and you wish to claim an input tax credit (ITC) on the GST component of your CTP insurance premium, you may have to pay extra for your greenslips. This is because insurers are allowed to charge a loading on greenslip prices where the policy holder is entitled to claim ITC. The same percentage applies for the loading charged by insurers for each vehicle type and geographic area and are not based on individual risk factors.
Greenslip insurers do not receive a tax credit for claims paid. The Motor Accidents Authority also acknowledges that they are additional administrative costs for insurers to manage the GST item. Because of these, the MAA allow greenslip insurers to charge the loading on greenslip prices.
If you are looking to compare greenslip prices for a common light vehicle registered under your name or your business name, the MAA Greenslip calculator allows you to make a comparison so you can find the cheapest greenslip for your vehicle. One of the questions asked in the calculator is your GST entitlement. If you are claiming for GST, make sure you choose the correct option to get accurate prices.
If you are looking to compare greenslip prices for other vehicles such as taxis, rental cars, hire cars, trucks, and buses, you may have to ring up each insurer or their agents to get prices.