These questions provide guidance about your tax affairs if you held a life insurance policy with The National Mutual Life Association of Australasia Limited (NMLA) and it was transferred to AMP Life Limited (AMPL) on 1 January 2017 under a Federal Court approved transfer.
Do I need to include any amount in my tax return as a result of the transfer?
No. The transfer of your policy from NMLA to AMPL on 1 January 2017 itself does not give rise to any assessable income or capital gain.
What is the ‘eligible period’ and how does it apply to life policies?
If you hold your policy for the eligible period, being over 10 years, you may qualify for concessional tax treatment when your policy matures, is terminated, forfeited, or surrendered in full or in part. This means that no bonuses paid to you in these circumstances will be taxed.
Does the transfer of my life insurance policy affect the ‘eligible period’ for my policy?
No. The transfer itself does not reset the eligible period for your policy.
The transfer of your NMLA policy to AMPL is consistent with the circumstances covered by our Taxation Determinations TD 92/144 and TD 92/145. You can rely on the views expressed by us in these determinations.
For general information, or if you wish to discuss your circumstances, you can phone us on 13 28 61.
- TD 92/144 Income tax: insurance: does subsection 26AH(4) apply to an owner of a life assurance policy when, as a result of a Court approved merger or takeover, a replacement policy is issued by the merged or acquiring life assurance company?
- TD 92/145 Income tax: insurance: does the date of commencement of risk of a policy of life assurance recommence as a result of a Court approved merger or takeover of a life assurance company where the policy holder is issued with a replacement policy by the merged or acquiring life assurance company?