Taxation Laws Amendment Act (No. 2) 1996 (76 of 1996)
Schedule 1 Amendment of the Income Tax Assessment Act 1936: various measures
Part 2 Complying funds: expenses of investing in pooled superannuation trusts or life assurance policies
31 After section 289
289A Expenses of investing in pooled superannuation trusts or life assurance policies
(1) This section applies if a complying ADF incurs expenditure in acquiring, holding or disposing of, or otherwise in relation to, an investment consisting of:
(a) units in a PST; or
(b) life assurance policies issued by a life assurance company or a registered organisation; or
(c) an interest in a trust whose assets consist wholly of life assurance policies issued by a life assurance company or a registered organisation.
(2) In determining whether a deduction is allowable from the assessable income for the expenditure, it is to be assumed that:
(a) any profit or gain of a capital nature that the fund would derive in respect of the investment would instead be of an income nature; and
(b) paragraph 26AH(7)(b) and section 291A (which deal with excluding bonuses from assessable income) had not been enacted.