Income Tax Assessment Act 1997
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.
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;
(b) so much of those amounts as relate to the company ' s liability to pay amounts on the death or disability of a person.
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.
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