Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-C - Deductions and capital losses  

Operative provisions

SECTION 320-55   Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from complying superannuation assets  

320-55(1)  


This section applies to a *life insurance company in respect of *life insurance policies where the company ' s liabilities under the policies are to be discharged out of *complying superannuation assets.

320-55(2)  
The company can deduct:


(a) the amounts of the *life insurance premiums received in respect of the policies that are transferred to its *complying superannuation assets in the income year;

less:


(b) so much of those amounts as relate to the company ' s liability to pay amounts on the death or disability of a person.

320-55(3)  


For the purposes of subsection (2) only, the amount of a *life insurance premium that relates to the company ' s liability to pay amounts on the death or disability of a person is:


(a) if the policy provides for *participating benefits or *discretionary benefits - nil; or


(b) if paragraph (a) does not apply and the policy states that the whole or a specified part of the premium is payable in respect of such a liability - the whole or that part of the premium, as appropriate; or


(c) if neither paragraph (a) nor (b) applies:


(i) if the policy is an *endowment policy - 10% of the premium; or

(ii) if the policy is a *whole of life policy - 30% of the premium; or

(iii) otherwise - so much of the premium as an *actuary determines to be attributable to such a liability.

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.