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.