Registration for GST affects your CTP green slip price
CTP green slip prices are more expensive if you want to claim an input tax credit for GST.
Insurers are allowed to charge a loading on green slip prices where the policyholder is entitled to claim an input tax credit for the GST component of the green slip price.
The loading applies to any individual or organisation registered for GST.
The loading charged by insurers must be the same percentage for each vehicle type and geographic area and cannot be varied based on individual risk factors.
Clause 1.42 of Motor Accident Guidelines 2017 (for policies with a commencement date on or after 1 December 2017) dictates the loading charged by insurers must be between 6.5% and 7.5% of the corresponding green slip quote or green slip price where there is no entitlement to claim an input tax credit for GST.
State Insurance Regulatory Authority (SIRA) allows insurers to charge the loading on green slip prices because insurance companies do not receive a tax credit when they pay claims and because SIRA accepts there are additional administrative costs for insurers to deal with the GST.
If you are registered for GST you are required to acknowledge that fact when you purchase a CTP green slip in NSW. If your circumstance changes in respect of GST you are also required to notify your CTP green slip insurer.
The greenslips.com.au Calculator on this site provides greenslip prices for each of the six greenslip insurers (as of 1 December 2020). They allow for cases where you seek an input tax credit for GST.