Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 1   Life insurance companies

Part 1   Amendments commencing on 30 June 2000

Income Tax Assessment Act 1997

24   Section 320-75

Repeal the section, substitute:

320-75 Deduction for ordinary investment policies

(1) This section applies to a *life insurance company in respect of *ordinary investment policies issued by the company.

(2) The company can deduct, in respect of *life insurance premiums received in the income year for those policies:

(a) the sum of the *net premiums;


(b) so much of the net premiums as an *actuary determines to be attributable to fees and charges charged in that income year.

(3) In making a determination under subsection (2), an *actuary is to have regard to:

(a) the changes over the income year in the sum of the *net current termination values of the policies; and

(b) the movements in those values during the income year.

(4) In addition, if an *actuary determines that:

(a) there has been a reduction in the income year (the current year ) of exit fees that were imposed in respect of those policies in a previous income year; and

(b) the reduction (or a part of it) has not been taken into account in a determination under subsection (2) for the current year;

the company can deduct so much of that reduction as has not been so taken into account.