Income Tax Regulations 1936 (Repealed)

Pt 3A repealed by SLI No 89 of 2007, reg 3 and Sch 1 item 3, effective 1 July 2007.

Pt 3A, comprising reg 14A - 14D, inserted by SR No 347 of 1990.

Reg 14D repealed by SLI No 89 of 2007, reg 3 and Sch 1 item 3, effective 1 July 2007. Reg 14D formerly read:

REGULATION 14D RISK COMPONENT: OTHER LIFE ASSURANCE POLICIES  
14D(1)
The risk component of a premium received under a life assurance policy, other than one referred to in regulation 14B or 14C , is the amount worked out in accordance with the following steps:

Step 1:	Find out the calculated liability for the policy by multiplying the valuation of liability by the adjustment factor according to the rate of compound interest used in the last actuarial valuation of liabilities made in respect of the life assurance company or registered organisation, on the basis of the following table:
	Rate of interest	Adjustment factor
	4% or more .	100%
	3.5% to less than 4% .	95%
	3% to less than 3.5% .	90%
	less than 3% .	85%
Step 2:	Find out the sum at risk under the policy as follows:
		(a) deduct from the sum payable on death any amount reinsured; and
		(b) deduct the calculated liability from the amount worked out under paragraph (a);
	each of these amounts being worked out as at:
		(c) the end of the year of income; or
		(d) immediately before the policy ceased, if the policy ceased in the year of income.
Step 3:	If a premium received relates to a period of less than a year, adjust the sum at risk (Step 2) by multiplying it by the fraction of the year to which the premium relates.
Step 4:	Work out the mortality factor on the basis of the formula:
	1.2 q   +   .0006;
	where q is the ultimate mortality rate in IA1964-70, worked out by reference to the age or ages of the life or lives insured.
Step 5:	Multiply the sum at risk (Step 2) or the adjusted sum at risk (Step 3), as the case requires, by the mortality factor.
Step 6:	Add the total worked out under Step 5 to that part of the premium, if any, paid to reinsure the mortality risk under the policy.

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History

Reg 14D(1) amended by SR No 152 of 1995.

14D(2)
If premiums are not contracted to be payable in each year of the policy, the risk component includes an amount determined by the authorised actuary for the period for which the policy can reasonably be expected to remain in force after premiums have ceased.

14D(3)
In making a determination under subregulation (2), the authorised actuary must have regard to the bases set out in subregulation (1).

14D(4)
In this Regulation:

"IA1964-70"
means the Australian Insured Lives Mortality Table 1964-1970, published by the Institute of Actuaries of Australia and New Zealand;

"valuation of liability"
means the amount that would be enough to pay in full at maturity, according to the rates of mortality assumed in the company's last actuarial valuation, all liability (other than any liability reinsured) under the policy in force on the date for which the valuation is made, if:

(a) the amount were accumulated at the rate of interest assumed in that last actuarial valuation; and

(b) the future premiums (other than any reinsurance premiums), were accumulated at that rate.

Reg 14D inserted by SR No 347 of 1990.