Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 1   Life insurance companies

Part 1   Amendments commencing on 30 June 2000

Income Tax Assessment Act 1997

22   Subsection 320-55(3)

Repeal the subsection, substitute:

(3) For the purposes of subsection (2) only, the amount of a *life insurance premium that relates to the company's liability to pay amounts on the death or disability of a person is:

(a) if the policy provides for *participating benefits or *discretionary benefits - nil; or

(b) if paragraph (a) does not apply and the policy states that the whole or a specified part of the premium is payable in respect of such a liability - the whole or that part of the premium, as appropriate; or

(c) if neither paragraph (a) nor (b) applies:

(i) if the policy is an *endowment policy - 10% of the premium; or

(ii) if the policy is a *whole of life policy - 30% of the premium; or

(iii) otherwise - so much of the premium as an *actuary determines to be attributable to such a liability.