Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-H - Segregation of assets to discharge exempt life insurance policy liabilities  

Operative provisions

SECTION 320-247   Policy split into an exempt life insurance policy and another life insurance policy  

When is a part of a policy taken to be an exempt life insurance policy?

320-247(1)  
A part of a *life insurance policy (the original policy ) is taken to be an *exempt life insurance policy for the purposes of this Act if:

(a) the part provides solely for the discharge of the liabilities (contingent or not) in respect of *superannuation income stream benefits that are currently *RP superannuation income stream benefits of a *complying superannuation fund; and

(b) the trustee of the fund holds the original policy.

320-247(2)  
A part of a *life insurance policy (the original policy ) is taken to be an exempt life insurance policy for the purposes of this Act if:

(a) the part provides solely for the discharge of liabilities that are attributable to the liabilities (contingent or not) in respect of *superannuation income stream benefits that are currently *RP superannuation income stream benefits of *complying superannuation funds; and

(b) the trustee of a *pooled superannuation trust holds the original policy; and

(c) the funds are unit holders of the trust.

What happens to the rest of the policy?

320-247(3)  
If a part of a policy (the original policy ) is taken to be an *exempt life insurance policy under subsection (1) or (2), the rest of the original policy is taken to be another *life insurance policy for the purposes of this Act.