Determining the amount of FIF income to include in your assessable income



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

End of attention

There are three methods for working out taxation for an interest in a FIF and two methods for an interest in a FLP, depending on your access to certain information on the FIF or FLP.

Interest in a FIF - read Chapter 4: Methods of FIF taxation

  • Most taxpayers liable to tax under the FIF measures will use the market value method.
  • Use the deemed rate of return method if you are unable to establish a market value for your FIF interest and you have not elected to use the calculation method.
  • Use the calculation method if you have access to the financial accounts of the FIF and you are able to determine the FIF's calculated profit or calculated loss.

Interest in a FLP - read Chapter 5: Foreign life assurance policies (FLPs)

If you have invested in a FLP, you can use:

  • the deemed rate of return method, or
  • the cash surrender method.
Last modified: 01 Jul 2006QC 18507