Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)

Schedule 5   Consolidation

Part 19   Life insurance companies

1   Division 1 - Amendments applying before the introduction of first home saver accounts

Income Tax Assessment Act 1997

194   After section 713-510

Insert:

713-510A Disregard single entity rule in working out certain amounts in respect of life insurance company

(1) This section applies if a *life insurance company is a *member of a *consolidated group.

(2) However, if the *life insurance company is a *subsidiary member of the group, this section does not apply:

(a) for the purposes of working out the *tax cost setting amount of an asset of the life insurance company when it becomes a subsidiary member of the group; and

(b) for the purposes of working out the tax cost setting amount of a *membership interest in the life insurance company if it ceases to be a subsidiary member of the group.

(3) Disregard section 701-1 (the single entity rule) in working out any of the following for the purposes of Division 320 in relation to the *life insurance company:

(a) amounts of the *head company's ordinary income and statutory income derived from *segregated exempt assets that are not assessable income and are not *exempt income under paragraph 320-37(1)(a);

(b) the head company's taxable income of the *complying superannuation class (see section 320-137);

(c) the head company's *tax loss of the complying superannuation class (see section 320-141);

(d) the total *transfer value of the head company's *virtual PST assets (see paragraph 320-175(1)(a));

(e) the amount of the head company's virtual PST liabilities (see paragraph 320-175(1)(b));

(f) the total transfer value of the head company's segregated exempt assets (see paragraph 320-230(1)(a));

(g) the amount of the head company's *exempt life insurance policy liabilities (see paragraph 320-230(1)(b)).