Income Tax Assessment Act 1997
This section applies to a *life insurance company for each of the following income years (each a relevant income year ):
(a) the income year in which 1 July 2000 occurs;
(b) the 4 following income years.
The effect of this section is modified when the life insurance business of a life insurance company is transferred to another life insurance company: see section 320-340 .
(a) the *value of the company ' s liabilities at the end of 30 June 2000 under its *continuous disability policies (being the value used by the company for the purposes of its *income tax return);
(b) the value of the company ' s liabilities at the end of 30 June 2000 under the *net risk components of its continuous disability policies as calculated under subsection 320-85(4) ;
the company ' s assessable income for each relevant income year includes an amount equal to one-fifth of the excess.
However, if a *life insurance company ceases in a relevant income year to carry on *life insurance business or to have any liabilities under the *net risk components of *continuous disability policies, subsection (2) does not apply for that income year or any future income years but the company ' s assessable income for that income year includes so much of the excess referred to in subsection (2) as has not been included in the company ' s assessable income for any previous relevant income years.