About these instructions
These instructions will help you complete the Life insurance companies taxation schedule 2023. They are not a guide to income tax law.
Complete this schedule if you derived income from the complying superannuation asset and or segregated exempt asset classes as:
- a life insurance company, or
- the head company of a consolidated group that includes at least one member that is a life insurance company.
For a consolidated group, the single entity rule is to be disregarded for certain purposes when working out the amounts that are shown on this schedule. See section 713-510A of the Income Tax Assessment Act 1997 (ITAA 1997) for more information.
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Download Life insurance companies taxation schedule 2023 (NAT 7334, PDF 152KB)This link will download a file.
1 Income – segregated exempt assets (SEA)
Complete the following at item 1:
Ordinary and statutory income (other than premiums)
If the life insurance company or the head company of a consolidated group derived income from SEA, write at label A the total of all ordinary and statutory income, less the premium income that is included at label B.
Premiums – exempt life insurance policies
Write at label B the total amount of gross premiums received from exempt life insurance policies.
2 Assessable income
Complete the following at item 2:
- Premiums from accident and disability and term policies
- Premiums – other life insurance policies
- Total ordinary income – ordinary class
- Total assessable income – complying superannuation class
- TOFA gains
Premiums from accident and disability and term policies
Write at label C the total amount of gross premiums received from:
- accident and disability policies (including continuous disability policies)
- term policies
- the value of assets (including money) relating to the ‘risk rider’ component of life insurance premiums transferred from the complying superannuation asset pool under subsections 320-180(1) and 320-195(3) of the ITAA 1997.
Premiums – other life insurance policies
Write at label D the total amount of gross premiums received from all life insurance policies for the ordinary class except for the amounts included at labels B, C and E.
Write at label E the total amount of gross premiums received from complying superannuation life insurance policies.
Total ordinary income – ordinary class
Write at label F the assessable income of the ordinary class that is income according to ordinary concepts. This includes premiums included at labels C and D.
For a consolidated group, the head company includes at label F the assessable income that is income according to ordinary concepts for all members of the consolidated group, except for the ordinary income of the complying superannuation class of any life insurance company which is a member of the consolidated group.
Total assessable income – complying superannuation class
Write at label G the assessable income that is allocated to the complying superannuation class under subsection 320-137(2) of the ITAA 1997. The total assessable income at label G includes both income according to ordinary concepts and statutory income.
The total assessable income of the complying superannuation class at label G also includes transfers to the complying superannuation asset pool, as stated in Transfers to complying superannuation asset pool.
TOFA gains
If the life insurance company had financial arrangements which resulted in assessable TOFA gains, then:
- write at label U the amount of assessable TOFA gains of the ordinary class that are income according to ordinary concepts included at label F; for a consolidated group, the head company includes the amount for all members of the consolidated group that are included at label F
- write at label T the amount of assessable TOFA gains of the complying superannuation class included at label G.
3 Allowable deductions
Complete the following at item 3:
- Tax losses claimed – ordinary class
- Tax losses claimed – complying superannuation class
- Total allowable deductions – ordinary class
- Total allowable deductions – complying superannuation class
Tax losses claimed – ordinary class
Write at label I the amount of tax losses of the ordinary class claimed as a deduction under subdivision 36-A of the ITAA 1997.
For a consolidated group, the head company includes at I the amount of tax losses of the ordinary class claimed as a deduction under subdivision 36-A of the ITAA 1997 by the consolidated group.
If the life insurance company is not a member of a consolidated group, it may need to complete a Losses schedule 2023 (NAT 3425) showing tax losses of the ordinary class and all other relevant items. For more information, see Losses schedule instructions 2023.
For a consolidated group, the head company may need to complete a Consolidated groups losses schedule 2023 (NAT 7888) showing tax losses of the ordinary class at item 3 Tax losses deducted in part A and all other relevant items. For more information, see Consolidated group losses schedule instructions 2023.
Tax losses claimed – complying superannuation class
Write at label H the amount of tax losses of the complying superannuation class claimed as a deduction in accordance with section 320-141 of the ITAA 1997.
The life insurance company may need to complete a Losses schedule 2023 (NAT 3425), or if it is a member of a consolidated group, the head company may need to complete a Consolidated groups losses schedule 2023 (NAT 7888).
In either schedule:
- do not show any tax losses claimed in the complying superannuation class
- show the following in part D of the losses schedule
- complying superannuation class tax losses carried forward to later income years
- complying superannuation class net capital losses carried forward to later income years.
Total allowable deductions – ordinary class
Write at label J the total allowable deductions for the ordinary class. For a consolidated group, the head company includes at label J the total allowable deductions for the ordinary class for all members of the consolidated group.
This label is the total allowable deductions of the life insurance company or the consolidated group, less the total allowable deductions of the complying superannuation class.
The total allowable deductions of the ordinary class also includes transfers to the complying superannuation asset pool and SEA as stated in:
Total allowable deductions – complying superannuation class
Write at label K the total allowable deductions for the complying superannuation class. This includes:
- deducted tax losses of the complying superannuation class determined in accordance with section 320-141 of the ITAA 1997
- deductions other than tax losses determined in accordance with subsection 320-137(4) of the ITAA 1997.
4 Taxable income or loss
Complete the following at item 4, Taxable income or loss.
Taxable income or loss
Write at label L the taxable income or loss in the ordinary class. For a consolidated group, this is the taxable income or loss in the ordinary class for all members of the consolidated group.
If the life insurance company has a tax loss in the ordinary class, print X in the box at label L.
Write at label M the taxable income or loss in the complying superannuation class (that is, label G less label K).
If the life insurance company has a tax loss in the complying superannuation class, print X in the box at label M.
5 Transfers
Complete the following at item 5:
- Transfers to complying superannuation asset pool
- Transfers from complying superannuation asset pool
- Transfers to SEA
- Transfers from SEA
Transfers to complying superannuation asset pool
Write at label N the transfer value of assets (including money) transferred by the life insurance company to the complying superannuation asset pool under subsections 320-180(3) and 320-185(1) of the ITAA 1997.
Transfers from complying superannuation asset pool
Write at label O the following amounts:
- the transfer value of assets (including money) transferred by the life insurance company from the complying superannuation asset pool under subsection 320-180(1) of the ITAA 1997
- assets transferred (including money) under subsection 320-195(3) of the ITAA 1997 having a total transfer value equal to the following
- all fees from investment-linked policies
- policy fees and administration fees from other than investment-linked policies
- premium-based fees from other than investment-linked policies.
Do not include the value of assets (including money) relating to the ‘risk rider’ component of life insurance premiums transferred from the complying superannuation asset pool under subsections 320-180(1) or 320-195(3) of the ITAA 1997.
Transfers to SEA
Write at label P the transfer value of assets (including money) transferred to the life insurance company’s SEA under subsections 320-235(3) and 320-240(1) of the ITAA 1997.
Transfers from SEA
Write at label Q the following amounts:
- the transfer value of assets (including money) transferred from the life insurance company’s SEA under subsection 320-235(1) of the ITAA 1997
- assets (including money) transferred under subsection 320-250(2) of the ITAA 1997 having a total transfer value equal to the following
- all fees from investment-linked policies
- policy fees and administration fees from other than investment-linked policies
- premium-based fees from other than investment-linked policies.
6 Exploration credit tax offset
Write at label R the total exploration credit tax offsets allowance under section 418-15 of the ITAA 1997.
Taxpayer’s declaration
If you do not lodge this schedule with your tax return, you must sign and date the schedule.
Include in the declaration a signature, date, name and telephone number for the public officer.
Help in completing this schedule
If you need help to complete this schedule, contact the ATO Large Service Team on (02) 9685 8735.
Use these instructions to help you complete the life insurance companies taxation schedule.