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

21   Subsection 320-40(7)

Repeal the subsection, substitute:

(7) The applicable amount for other policies is:

(a) the sum of:

(i) the *life insurance premiums received in respect of the policies in the income year; and

(ii) any amounts that the company includes in its assessable income in respect of the policies under paragraph 320-15(1)(k) for the income year;

less:

(b) so much of the sum of:

(i) the amounts that the company can deduct under section 320-75 in respect of the policies in the income year; and

(ii) the *risk components of claims paid under the policies in the income year;

as does not exceed the sum of the amounts mentioned in paragraph (a).