You must use the form General insurers – election to spread AASB 17 changes (PDF, 255KB)Opens in a new window to make a valid choice to spread.
Section A of form
The choice must be made by the general insurance company.
If the general insurance company is a subsidiary member of a consolidated group or a MEC group, the choice must be made by the head company or the provisional head company of the group at the time the choice is made.
Section B of form
To calculate the transitional adjustment related to claims incurred, the value of OCL at the end of the 2023 income year is compared with the value of ALIC at the end of the 2023 income year.
- Where OCL is less than ALIC, the difference is deductible in equal amounts over the 2024 to 2028 income years.
- Where OCL is more than ALIC, the difference is assessable in equal amounts over the 2024 to 2028 income years.
To calculate the transitional adjustment relating to deferred premium income, the value of the UPR at the end of the 2023 income year is compared with the value of ALRC at the end of the 2023 income year.
- Where UPR is less than ALRC, the difference is deductible in equal amounts over the 2024 to 2028 income years.
- Where UPR is more than the ALRC, the difference is assessable in equal amounts over the 2024 to 2028 income years.