Income Tax Assessment Act 1936
(Repealed by No 79 of 2010 )
View history note
Hide history noteSch 2J repealed by No 79 of 2010 , s 3 and Sch 5 item 1, applicable to the first income year starting on or after 1 July 2010 and later income years. Sch 2J formerly read:
SCHEDULE 2J - GENERAL INSURANCE
Division 321 - General insurance companies
SECTION 321-1 WHAT THIS DIVISION IS ABOUTHistoryDiv 321 inserted by No 97 of 2002.
This Division deals with several disparate matters relating to the taxation of general insurance companies.
HistoryS 321-1 inserted by No 97 of 2002.
Subdivision 321-A - Provision for or payment of claims
SECTION 321-5 WHAT THIS SUBDIVISION IS ABOUTHistorySubdiv 321-A inserted by No 97 of 2002.
This Subdivision contains provisions relating to the assessment of general insurance companies in respect of provision for or payment of claims.
Operative provisionsHistoryS 321-5 inserted by No 97 of 2002.
SECTION 321-10 AMOUNT TO BE INCLUDED IN ASSESSABLE INCOME FOR OUTSTANDING CLAIMS LIABILITY
321-10
If the value, at the end of a year of income (the current year of income ), of the outstanding claims liability of a general insurance company under general insurance policies is less than the value, at the end of the previous year of income, of that liability, the company's assessable income of the current year of income includes an amount equal to the difference.SECTION 321-15 DEDUCTION FOR OUTSTANDING CLAIMS LIABILITYHistoryS 321-10 inserted by No 97 of 2002.
321-15
If the value, at the end of a year of income (the current year of income ), of the outstanding claims liability of a general insurance company under general insurance policies exceeds the value, at the end of the previous year of income, of that liability, the company can deduct for the current year of income an amount equal to the excess.SECTION 321-20 HOW VALUE OF OUTSTANDING CLAIMS LIABILITY IS WORKED OUTHistoryS 321-15 inserted by No 97 of 2002.
321-20
The value of the outstanding claims liability , at the end of a year of income, of a general insurance company under general insurance policies issued in the course of carrying on insurance business is:
(a) the sum of the amounts that, at that time, the company determines, based on proper and reasonable estimates, to be appropriate to set aside and invest in order to meet:
(i) liabilities for outstanding claims under those policies; and
(ii) direct settlement costs associated with those outstanding claims;less
(b) any part of that sum that at that time the company expects to recover under a policy of reinsurance or in any other way.SECTION 321-25 DEDUCTION FOR CLAIMS PAID DURING YEAR OF INCOMEHistoryS 321-20 inserted by No 97 of 2002.
321-25
A general insurance company can deduct amounts paid during the year of income in respect of claims under general insurance policies.SECTION 321-30 APPLICATION: INSURANCE BUSINESS OTHER THAN REINSURANCE BUSINESSHistoryS 321-25 inserted by No 97 of 2002.
321-30(1)
Subject to this section, this Subdivision applies, and is taken to have applied, to assessments in respect of insurance business other than reinsurance business, for the 1991-92 year of income and all later years of income.
321-30(2)
In determining whether an amount is to be included under section 321-10 in a general insurance company's assessable income for the 1991-92 year of income in respect of insurance business other than reinsurance business, the value of the company's outstanding claims liability under general insurance policies (other than policies of reinsurance) at the end of the previous year of income is taken to be the amount that would have been the value of that liability at that time if it had been worked out in accordance with section 321-20 .
321-30(3)
In determining whether a general insurance company can deduct an amount under section 321-15 for the 1991-92 year of income in respect of insurance business other than reinsurance business, the value of the company's outstanding claims liability under general insurance policies (other than policies of reinsurance) at the end of the previous year of income is taken to be the amount that would have been the value of that liability at that time if it had been worked out in accordance with section 321-20 .
SECTION 321-35 APPLICATION: REINSURANCE BUSINESSHistoryS 321-30 inserted by No 97 of 2002.
321-35(1)
Subject to this section, this Subdivision applies, and is taken to have applied, to assessments in respect of reinsurance business for the 1995-96 year of income and all later years of income.
321-35(2)
In determining whether an amount is to be included under section 321-10 in a general insurance company's assessable income for the 1995-96 year of income in respect of reinsurance business, the value of the company's outstanding claims liability under general insurance policies that are policies of reinsurance at the end of the previous year of income is taken to be the amount that would have been the value of that liability at that time if it had been worked out in accordance with section 321-20 .
321-35(3)
In determining whether a general insurance company can deduct an amount under section 321-15 for the 1995-96 year of income, the value of the company's outstanding claims liability under general insurance policies that are policies of reinsurance at the end of the previous year of income is taken to be the amount that would have been the value of that liability at that time if it had been worked out in accordance with section 321-20 .
HistoryS 321-35 inserted by No 97 of 2002.
Subdivision 321-B - Premium income
SECTION 321-40 WHAT THIS SUBDIVISION IS ABOUTHistorySubdiv 321-B inserted by No 97 of 2002.
This Subdivision contains provisions relating to the assessment of general insurance companies in respect of premium income.
Operative provisionsHistoryS 321-40 inserted by No 97 of 2002.
SECTION 321-45 ASSESSABLE INCOME TO INCLUDE GROSS PREMIUMS
321-45
The assessable income of a general insurance company for a year of income includes the gross premiums received or receivable by the company during the year of income in respect of general insurance policies.SECTION 321-50 AMOUNT TO BE INCLUDED IN ASSESSABLE INCOME FOR REDUCTION IN VALUE OF UNEARNED PREMIUM RESERVEHistoryS 321-45 inserted by No 97 of 2002.
321-50
If the value, at the end of a year of income (the current year of income ), of the unearned premium reserve of a general insurance company under general insurance policies is less than the value, at the end of the previous year of income, of that reserve, the company's assessable income of the current year of income includes an amount equal to the difference.SECTION 321-55 DEDUCTION FOR INCREASE IN VALUE OF UNEARNED PREMIUM RESERVEHistoryS 321-50 inserted by No 97 of 2002.
321-55
If the value, at the end of a year of income (the current year of income ), of the unearned premium reserve of a general insurance company under general insurance policies exceeds the value, at the end of the previous year of income, of that reserve, the company can deduct for the current year of income an amount equal to the excess.SECTION 321-60 HOW VALUE OF UNEARNED PREMIUM RESERVE IS WORKED OUTHistoryS 321-55 inserted by No 97 of 2002.
321-60
The value of the unearned premium reserve , at the end of a year of income (the current year of income ), of a general insurance company under general insurance policies issued in the course of carrying on insurance business is so much of the sum of the net premiums received or receivable by the company in relation to those policies as the company determines, based on proper and reasonable estimates, to relate to risks covered by the policies in respect of later years of income where:apportionable issue costs
means so much of the costs incurred by the company in connection with the issue of the relevant policies as relate to the gross premiums and, without limiting the generality of the above, includes the following:
(a) commission and brokerage fees;
(b) administration costs of processing insurance proposals and renewals;
(c) administration costs of collecting premiums;
(d) selling and underwriting costs;
(e) fire brigade charges;
(f) stamp duty;
(g) other charges, levies and contributions imposed by governments or governmental authorities that directly relate to general insurance policies.net premiums
means:
(a) the sum of:
(i) the gross premiums received or receivable by the company in relation to the relevant policies in the current year of income or an earlier year of income; and
(ii) any reinsurance commissions received or receivable by the company that relate to relevant reinsurance premiums;less
(b) the sum of:
(i) the apportionable issue costs; and
(ii) any relevant reinsurance premiums.relevant reinsurance premiums
means premiums paid by the company in the current year of income or an earlier year of income for the reinsurance of risks covered by the relevant policies, other than:
(a) reinsurance premiums that the company cannot deduct because of the application of subsection 148(1) ; and
(b) treaty non-proportional reinsurance premiums.treaty non-proportional reinsurance premiums
means reinsurance premiums that were paid in respect of a particular class of insurance business where, under the contract of reinsurance, the reinsurer agreed to pay, in respect of a loss incurred by the company that is covered by the relevant policy, some or all of the excess over an agreed amount.SECTION 321-65 APPLICATIONHistoryS 321-60 inserted by No 97 of 2002.
321-65
This Subdivision applies to assessments for the 1999-2000 year of income and all subsequent years of income.HistoryS 321-65 inserted by No 97 of 2002.
Division 323 - Companies that are not required by law to insure in respect of workers ' compensation liabilities
SECTION 323-1 WHAT THIS DIVISION IS ABOUTHistoryDiv 323 inserted by No 97 of 2002.
This Division deals with provision for and payment of outstanding claims for workers ' compensation liabilities against companies that are not required by law to insure, and do not insure, in respect of such liabilities.
HistoryDiv 323-1 inserted by No 97 of 2002.
Operative provisions
SECTION 323-5 AMOUNT TO BE INCLUDED IN ASSESSABLE INCOME FOR OUTSTANDING CLAIMS LIABILITY
323-5
If the value, at the end of a year of income (the current year of income ), of the outstanding claims liability for workers ' compensation claims of a company that is not required by law to insure, and does not insure, against liability for such claims is less than the value, at the end of the previous year of income, of that liability, the company's assessable income of the current year of income includes an amount equal to the difference.SECTION 323-10 DEDUCTION FOR OUTSTANDING CLAIMS LIABILITYHistoryS 323-5 inserted by No 97 of 2002.
323-10
If the value, at the end of a year of income (the current year of income ), of the outstanding claims liability for workers ' compensation claims of a company that is not required by law to insure, and does not insure, against liability for such claims exceeds the value, at the end of the previous year of income, of that liability, the company can deduct for the current year of income an amount equal to the excess.SECTION 323-15 HOW VALUE OF OUTSTANDING CLAIMS LIABILITY IS WORKED OUTHistoryS 323-10 inserted by No 97 of 2002.
323-15
The value of the outstanding claims liability , at the end of a year of income, of a company for workers ' compensation claims is the sum of the amounts that, at that time, the company determines, based on proper and reasonable estimates, to be appropriate to set aside and invest in order to meet:
(a) liabilities for those claims; and
(b) direct settlement costs associated with those claims.SECTION 323-20 DEDUCTIONS FOR CLAIMS PAID DURING YEAR OF INCOMEHistoryS 323-15 inserted by No 97 of 2002.
323-20
A company that is not required by law to insure, and does not insure, against liability for workers ' compensation claims can deduct amounts paid during the year of income in respect of such claims.SECTION 323-25 APPLICATIONHistoryS 323-20 inserted by No 97 of 2002.
323-25
This Division applies, and is taken to have applied, to assessments for the 1996-97 year of income and all later years of income.HistoryS 323-25 inserted by No 97 of 2002.
Sch 2J inserted by No 97 of 2002.
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