Life companies taxation schedule notes

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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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Introduction

These notes are designed to assist in the preparation of the Life companies taxation schedule. These notes 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 may 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. Indicate 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 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

The total assessable income of the ordinary class is the total assessable income of the life insurance company less the total assessable income of the complying superannuation class. The total assessable income of the ordinary class includes transfers from the VPST as stated in Transfers from VPST and should 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 an RSA provider - taxable contributions made to RSA's provided by the company - paragraph 320-15(l) 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 should be shown at label G.

Statement of taxable income - allowable deductions/reductions

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.

Other tax losses

Show at label I the amount of other tax losses (other than VPST losses) claimed as a deduction by the life company under Subdivision 36A of ITAA 1997.

Total allowable deductions - ordinary class

The total allowable deductions of the ordinary class of the company is the total allowable deductions of the company less the total allowable deductions/reductions of the complying superannuation class. The total allowable deductions of the ordinary class includes transfers to the VPST as stated in Transfers to VPST and should be shown at label J.

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 RSA's other than benefits paid to, or in respect of, the holders of the RSA's - subsection 320-155(1) of ITAA 1997.

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

Note: Where the sum of the amounts of the reductions of the VPST referred to in subsection 320-205(4) of ITAA 1997 exceed 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 N 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 O 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, and
  • premium based fees from other than investment-linked policies.

Note: 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 P 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 Q 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, and
  • premium based fees from other than investment-linked policies.