History
S 320-107(3) amended by No 70 of 2015.
S 320-107(3) amended by No 45 of 2008.
S 320-107 repealed by No 81 of 2016, s 3 and Sch 9 item 3, effective 1 January 2017 and applicable in relation to a lump sum that is:
(a) paid because of the death of a person that occurred on or after 1 July 2017; or
(b) paid on or after 1 July 2019.
Note: For paragraph (b), it does not matter when the person, in relation to whom the lump sum is payable, died.
S 320-107 formerly read:
SECTION 320-107 Deductions for increased amount of lump sum death benefit
320-107(1)
A *life insurance company can deduct an amount under this section if:
(a)
it pays a lump sum because of the death of a person to the trustee of the deceased
'
s estate or an individual who was a *spouse, former spouse or *child of the deceased at the time of death or payment; and
(b)
the payment is in relation to the commutation of, or is of the capital amount payable on the termination of, an *exempt life insurance policy or a life insurance policy covered by subparagraph (b)(i) of the definition of
complying superannuation life insurance policy
in subsection 995-1(1) while the policy was held by the deceased by reason that the deceased would have been entitled to receive the *annuity concerned; and
(c)
it increases the lump sum by an amount (the
tax saving amount
) so that the amount of the lump sum is the amount that the company could have paid if no tax were payable on amounts included in its assessable income under Subdivision 320-B.
History
S 320-107(1) amended by No 70 of 2015, s 3 and Sch 1 item 192, by substituting
"
superannuation
"
for
"
superannuation/FHSA
"
in para (b), effective 1 July 2015.
S 320-107(1) amended by No 45 of 2008, s 3 and Sch 7 item 11, by substituting
"
complying superannuation/FHSA life insurance policy
"
for
"
virtual PST life insurance policy
"
in para (b), effective 26 June 2008.
320-107(2)
The company can deduct the amount for the income year in which the lump sum is paid.
320-107(3)
The amount the company can deduct is:
| |
Tax saving amount |
|
| |
Complying superannuation class rate |
|
where:
complying superannuation class rate
is the rate of tax imposed on the *complying superannuation class of the company
'
s taxable income for the income year.
History
S 320-107(3) amended by No 70 of 2015, s 3 and Sch 1 items 101, 102 and 189, by inserting the definition of
"
complying superannuation class rate
"
, repealing the definition of
"
complying superannuation/FHSA class rate
"
and substituting
"
superannuation
"
for
"
superannuation/FHSA
"
in the formula, effective 1 July 2015. The definition formerly read:
complying superannuation/FHSA class rate
is the rate of tax imposed on the *complying superannuation/FHSA class of the company
'
s taxable income for the income year.
S 320-107(3) amended by No 45 of 2008, s 3 and Sch 7 items 12, 13 and 14, by substituting the formula, repealing the definition of
"
complying superannuation class rate
"
and inserting the definition of
"
complying superannuation/FHSA class rate
"
, effective 26 June 2008. The formula and the definition formerly read:
| |
"
Tax saving amount |
|
| |
Complying superannuation class rate |
|
complying superannuation class rate
is the rate of tax imposed on the *complying superannuation class of the company
'
s taxable income for the income year.
"
320-107(4)
The amount the company can deduct for a sum paid because of the death of a person to the trustee of the deceased
'
s estate is so much of the subsection (3) amount as is appropriate having regard to the extent to which individuals referred to in paragraph (1)(a) can reasonably be expected to benefit from the estate.
S 320-107 inserted by
No 9 of 2007
, s 3 and Sch 1 item 15, applicable to the 2007-2008 income year and later years.
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