Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 26 - Some amounts you cannot deduct, or cannot deduct in full  

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History

Div 26 heading substituted by No 121 of 1997.

Operative provisions  

SECTION 26-85   Borrowing costs on loans to pay life insurance premiums  

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26-85(1)    
You can only deduct under this Act interest on, or other expenses associated with, money you borrow to pay a premium for a *life insurance policy if:

(a) the *risk component of the premium received by the insurer is the entire amount of the premium; and

(b) each amount the insurer is liable to pay under the policy would be included in your assessable income if it were paid.

26-85(2)    
The risk component of a premium for a *life insurance policy means the amount of the premium worked out on the basis specified in the regulations.

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History

S 26-85 substituted by No 15 of 2007, s 3 and Sch 1 item 179, applicable to the 2007-2008 income year and later years. S 26-85 formerly read:

SECTION 26-85 Amounts offset against superannuation guarantee charge  
You cannot deduct under this Act a contribution made for an employee of yours if you elect under subsection 23A(1) of the Superannuation Guarantee (Administration) Act 1992 that the contribution be offset against your liability to pay superannuation guarantee charge.

S 26-85 inserted by No 147 of 2005, s 3 and Sch 6 item 2, applicable to contributions made on or after 1 January 2006.

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