Income Tax Assessment Act 1997



Division 320 - Life insurance companies  

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

Operative provisions

SECTION 320-250   Transfer of assets and payment of amounts from segregated exempt assets otherwise than as a result of a valuation under section 320-230  



(a) a *life insurance policy issued by a *life insurance company becomes a policy referred to in subsection 320-190(1) ; and

(b) immediately before the policy became a policy referred to in subsection 320-190(1) , the policy was an *exempt life insurance policy;

the company can transfer from its *segregated exempt assets, to a *complying superannuation asset pool, assets of any kind whose total *transfer value does not exceed the company ' s liabilities in respect of the policy.

A *life insurance company can at any time transfer an asset from its*segregated exempt assets in exchange for an amount of money equal to the *transfer value of the asset at the time of the transfer.

If a *life insurance company:

(a) imposes any fees or charges in respect of *segregated exempt assets; or

(b) imposes any fees or charges in respect of *exempt life insurance policies where the liabilities under the policies are to be discharged out of the company's segregated exempt assets; or

(c) determines, at a time other than a *valuation time, that the total *transfer value of the company's segregated exempt assets as at that time exceeds the amount of the company's *exempt life insurance policy liabilities as at that time;

the company must, when the fees or charges are imposed or the excess is determined, as the case may be, transfer from the segregated exempt assets, assets having a total transfer value equal to the fees, charges or excess, as the case may be.


(a) any liabilities arise for the discharge of which a *life insurance company has *segregated exempt assets; or

(b) any expenses are incurred by a life insurance company directly in respect of segregated exempt assets in relation to a period during which the assets are segregated exempt assets;

the life insurance company must pay from the segregated exempt assets any amounts required to discharge the liabilities or amounts equal to the expenses, as the case may be.

(Repealed by No 83 of 2004)

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