Taxation Laws Amendment Act (No. 1) 2003 (12 of 2003)

Schedule 3   Friendly society investment products

Part 3   Assessment of income from certain policies

Income Tax Assessment Act 1997

10   At the end of Division 15

Add:

15-55 Certain amounts paid under funeral policy

(1) Your assessable income includes the amount of a benefit provided to you by a *life insurance company under a *funeral policy issued after 31 December 2002 to pay for the funeral of the insured person, reduced by:

(a) the amount of the premium or premiums of the policy that is reasonably related to the benefit; and

(b) the amount of the fees and charges included in the company's assessable income for any income year under paragraph 320-15(k) that is reasonably related to the benefit.

(2) This section does not apply if the benefit is included in your assessable income as:

(a) *ordinary income under section 6-5; or

(b) *statutory income under a section of this Act other than this section.

15-60 Certain amounts paid under scholarship plan

(1) Your assessable income includes the amount of a benefit provided to you, or on your behalf, by a *life insurance company under a *scholarship plan covered by subsection (2) or (3), reduced by the amount worked out under subsection (4), if:

(a) the benefit is provided on or after 1 January 2003; and

(b) you are nominated in the plan as a beneficiary whose education is to be helped by the benefit.

(2) This subsection covers a *scholarship plan issued by the *life insurance company after 31 December 2002.

(3) This subsection covers a *scholarship plan if:

(a) the plan was issued by the *life insurance company before 1 January 2003; and

(b) no amount received by the company on or after 1 January 2003 and attributable to the plan is *exempt income of the company under paragraph 320-35(1)(f).

(4) The amount of the reduction is the sum of:

(a) the amount of the premium or premiums of the plan that is reasonably related to the benefit; and

(b) the amount of the fees and charges included in the company's assessable income for any income year under paragraph 320-15(k) that is reasonably related to the benefit.