Taxation Laws Amendment Act (No. 2) 1996 (76 of 1996)

Schedule 1   Amendment of the Income Tax Assessment Act 1936: various measures

Part 2   Complying funds: expenses of investing in pooled superannuation trusts or life assurance policies

30   After section 279D

Insert:

279E Expenses of investing in pooled superannuation trusts or life assurance policies

(1) This section applies if a complying superannuation fund incurs expenditure in acquiring, holding or disposing of, or otherwise in relation to, an investment consisting of:

(a) units in a PST; or

(b) life assurance policies issued by a life assurance company or a registered organisation; or

(c) an interest in a trust whose assets consist wholly of life assurance policies issued by a life assurance company or a registered organisation.

(2) In determining whether a deduction is allowable from the assessable income for the expenditure, it is to be assumed that:

(a) any profit or gain of a capital nature that the fund would derive in respect of the investment would instead be of an income nature; and

(b) paragraph 26AH(7)(b) and section 282A (which deal with excluding bonuses from assessable income) had not been enacted.