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    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    If you would prefer to read this document in portable document format (PDF): download Life insurance companies taxation schedule-consolidated groups 2003 here (NAT 7334, PDF, 97KB).

    Life companies taxation schedule notes

    Introduction

    These notes are designed to assist in the preparation of the Life insurance companies taxation schedule 2003 - consolidated groups. They are not a guide to the income tax law.

    Statement of income - segregated exempt assets (SEA)

    Net investment income - SEA

    If a life company reconciles accounting income to taxable income, it must include at label A the total accounting net investment income for SEA. If a life company uses a taxation basis to determine income derived from SEA please supply the following details of ordinary and statutory income derived from SEA: all investment income from SEA less losses made from the disposal of SEA assets. Investment income includes gains made on the disposal of investments, interest income, dividend income, trust distributions, partnership distributions, net rental income and all other investment income.

    Show whether the company used an accounting basis or a taxation basis to determine net investment income derived from SEA by printing X in the Code box to the right of the amount shown at label A.

    Premiums - exempt life insurance policies

    Show at label B the total amount of gross premiums received from exempt life insurance policies.

    Statement of taxable income - assessable income

    Premiums from accident and disability and term policies

    Show at label C the total amount of gross premiums received from accident and disability and term policies. Term policies include assets (including money) having a total transfer value equal to 'risk riders' that are transferred from the virtual pooled superannuation trust (VPST) under section 320-195 of the Income Tax Assessment Act 1997 (ITAA 1997). Disability policies include continuous disability policies.

    Premiums - other life insurance policies

    Show at label D for the ordinary class, the total amount of gross premiums received from all life insurance policies for the ordinary class except for:

    • exempt life insurance policies
    • term policies (including riders)
    • accident and disability policies.

    Show at label E for the VPST the total amount of gross premiums received from VPST life insurance policies.

    Total assessable income - ordinary class

    Please see appendix 1. The assessable income to be included at this label includes transfers from the VPST as stated in Transfers from VPST and must be shown at label F.

    Total assessable income - complying superannuation class

    The total assessable income of the complying superannuation class is the total of the following amounts:

    • the sum of the amounts of the assessable income of the VPST under subsection 320-205(3) of ITAA 1997
    • the amount included in the assessable income of the specified roll-over component of the complying superannuation class under paragraph 320-15(j) and section 320-215 of ITAA 1997, and
    • if the life company is a retirement savings account (RSA) provider, the taxable contributions made to RSAs provided by the company, under paragraph 320-15(1) and subsection 320-155(1) of ITAA 1997.

    The total assessable income of the complying superannuation class includes transfers to the VPST as stated in Transfers to VPST and must be shown at label G.

    Statement of taxable income - allowable deductions/reductions

    Virtual pooled superannuation trust (VPST) tax losses claimed

    Show at label H the amount of carry-forward VPST tax losses claimed as a reduction under subsection 320-205(2) of ITAA 1997.

    Note:

    Do not show any amount in Part A of the Consolidated groups losses schedule 2003 for VPST tax losses but show VPST tax losses carried forward to later income years and VPST net capital losses carried forward to later income years in Part D of the Consolidated groups losses schedule 2003.

    Note: Other tax losses

    Show other tax losses in the Tax losses utilised labels in Part A of the Consolidated groups losses schedule 2003, and all other relevant labels in the Consolidated groups losses schedule 2003.

    Total allowable deductions/reductions - complying superannuation class

    The total allowable deductions/reductions of the complying superannuation class is the total of the following amounts:

    • the sum of the amounts of the reductions of the VPST referred to in subsection 320-205(4) of ITAA 1997, and
    • the total of all amounts debited from RSAs other than benefits paid to, or in respect of, the holders of the RSAs, under subsection 320-155(1) of ITAA 1997.

    Show at label I the total allowable deductions/reductions for the complying superannuation class.

    Note that where the sum of the amounts of the reductions of the VPST referred to in subsection 320-205(4) of ITAA 1997 exceeds the sum of the amounts of the assessable income of the VPST under subsection 320-205(3) of ITAA 1997 the sum of the amounts of the reductions of the VPST are the same amount as the sum of the amounts of the assessable income of the VPST.

    Transfers

    Transfers to VPST

    Show at label L the transfer value of assets (including money) transferred by the company to the VPST under subsections 320-180(2) and 320-185(1) of ITAA 1997.

    Transfers from VPST

    Show at label M the following amounts:

    • the transfer value of assets (including money) transferred by the company from the VPST under subsections 320-180(1) of ITAA 1997, and
    • assets transferred (including money) under subsection 320-195(3) of ITAA 1997 having a total transfer value equal to the following:
      • all fees from investment-linked policies
      • policy fees and administration fees from other than investment-linked policies
      • premium based fees from other than investment-linked policies.
       

    Do not include assets (including money) having a total transfer value equal to 'risk riders' that are transferred from the VPST under section 320-195 of ITAA 1997.

    Transfers to SEA

    Show at label N the transfer value of assets (including money) transferred to the company's segregated exempt assets under subsections 320-235(2) and 320-240(1) of ITAA 1997.

    Transfers from SEA

    Show at label O the following amounts:

    • the transfer value of assets (including money) transferred from the company's segregated exempt assets under subsection 320-235(1) of ITAA 1997 and
    • assets (including money) transferred under subsection 320-250(2) of ITAA 1997 having a total transfer value equal to the following:
      • all fees from investment-linked policies - that is, allocated pensions and annuities
      • policy fees and administration fees from other than investment-linked policies
      • premium based fees from other than investment-linked policies.
       

    Help in completing this schedule

    Should you require assistance in completing this schedule, please contact Daryl Montiford on (03) 9275 2579 of the Box Hill office of the Australian Taxation Office.

    Appendix 1: Further information required for label F

    Consolidated group where a life company is a subsidiary member

    For a life company with an income year ended 30 June 2003 that is a member of a consolidated group, the amount included at label F is the total assessable income of the head company less the assessable income of the complying superannuation class less the remaining statutory income that is included in the assessable income of the head company for the income year.

    For a life company with an income year ended 31 December 2002 that is an early balancer and is a member of a consolidated group, the amount included at label F is the total assessable income of the head company less the assessable income of the complying superannuation class for the income year.

    For a life company with an income year ended 30 September 2003 that is a late balancer and is a member of a consolidated group, the amount included at label F is the total assessable income of the head company less the assessable income of the complying superannuation class less the remaining statutory income that is included in the assessable income of the head company for the income year.

    For a life company with an income year ended 31 December 2003 that is a late balancer and is a member of a consolidated group, the amount included at label F is the total assessable income of the head company less the assessable income of the complying superannuation class less the remaining statutory income that is included in the assessable income of the head company for the income year.

    Note:

    The information outlined above assumes that companies affected by the changes to the definition of instalment income for life insurance companies do not want the change to take effect from the first instalment quarter of their first income year starting on or after 1 July 2003.

    Last modified: 07 Sep 2010QC 17233