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

Schedule 3   Friendly society investment products

Part 2   Deductions for friendly societies

Income Tax Assessment Act 1997

5   After section 320-110

Insert:

320-111 Deduction for funeral policy payout

(1) A *life insurance company that is a *friendly society can deduct the amount of a benefit provided in the income year by the company under a *funeral policy issued after 31 December 2002, reduced by so much of the sum of the amounts deducted or deductible by the company under section 320-75 for any income year as is reasonably related to the benefit.

(2) This section has effect despite subsection 320-80(3).

320-112 Deduction for scholarship plan payout

(1) A *life insurance company that is a *friendly society can deduct the amount of a benefit it provides in the income year and on or after 1 January 2003:

(a) under a *scholarship plan covered by subsection (2) or (3); and

(b) to, or on behalf of, a person nominated in the plan as a beneficiary whose education is to be helped by the benefit;

reduced by so much of the sum of the amounts deducted or deductible by the company under section 320-75 for any income year as is reasonably related to 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) This section has effect despite subsection 320-80(3).