Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-B - What is included in a life insurance company ' s assessable income  

Operative provisions

SECTION 320-15   Assessable income - various amounts  

320-15(1)    

A *life insurance company ' s assessable income includes:

(a) the total amount of the *life insurance premiums paid to the company in the income year; and

(b) amounts received or recovered under *contracts of reinsurance (except amounts that relate to a risk, or part of a risk, in relation to which subsection 148(1) of the Income Tax Assessment Act 1936 applies) to the extent to which they relate to the *risk components of claims paid under *life insurance policies; and

(c) any amount received or recovered that is a refund, or in the nature of a refund, of the life insurance premium paid under a contract of reinsurance (except any amount that relates to a risk, or part of a risk, in relation to which subsection 148(1) of the Income Tax Assessment Act 1936 applies); and

(ca) any reinsurance commission received or recovered by the company in respect of a contract of reinsurance (except any commission that relates to a risk, or part of a risk, in relation to which subsection 148(1) of the Income Tax Assessment Act 1936 applies); and

(d) any amount received under a profit-sharing arrangement contained in, or entered into in relation to, a contract of reinsurance; and

(da) the *transfer values of assets transferred by the company from a *complying superannuation asset pool under subsection 320-180(1) or 320-195(3) ; and

(db) the transfer values of assets transferred by the company to a complying superannuation asset pool under subsection 320-180(3) or 320-185(1) ; and

(e) if an asset (other than money) is transferred from or to a complying superannuation asset pool under subsection 320-180(1) or (3), to a complying superannuation asset pool under section 320-185 or from a complying superannuation asset pool under subsection 320-195(2) or (3) - the amount (if any) that is included in the company ' s assessable income of the income year in which the asset was transferred because of section 320-200 ; and

(f) the transfer values of assets transferred by the company from the company ' s *segregated exempt assets under subsection 320-235(1) or 320-250(2) ; and

(g) if an asset (other than money) is transferred to the company ' s segregated exempt assets under subsection 320-235(3) or section 320-240 - the amount (if any) that is included in the company ' s assessable income because of section 320-255 ; and

(h) subject to subsection (2), if the *value, at the end of the income year, of the company ' s liabilities under the *net risk components of life insurance policies is less than the value, at the end of the previous income year, of those liabilities - an amount equal to the difference; and

Note:

Where the value at the end of the income year exceeds the value at the end of the previous income year, the excess can be deducted: see section 320-85 .

(i) amounts specified in agreements under section 295-260 ; and

(j) *specified roll-over amounts paid to the company; and

(ja) amounts imposed by the company in respect of risk riders for *ordinary investment policies in an income year in which the company did not receive any life insurance premiums for those policies; and

(k) fees and charges (not otherwise included in, or taken into account in working out, the company ' s assessable income) imposed by the company in respect of life insurance policies; and

(l) if the company is an *RSA provider - contributions made to *RSAs provided by the company that would be included in the company ' s assessable income under Subdivision 295-C if that Subdivision applied to the company.

320-15(2)    

Paragraph (1)(h) does not cover any liabilities under:

(a) a *life insurance policy that provides for *participating benefits or *discretionary benefits; or

(b) an *exempt life insurance policy; or

(c) a *funeral policy.

320-15(3)    

An amount included in assessable income under paragraph (1)(i) is included for the income year of the *life insurance company that includes the last day of the transferor ' s income year to which the agreement referred to in section 295-260 relates.