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.