Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 (52 of 2024)

Schedule 6   Income tax amendments for updates to accounting standards for general insurance contracts

Part 2   Other amendments

Income Tax Assessment Act 1997

22   Subsection 713-725(4)

Repeal the subsection, substitute:

(4) The things are the *general insurance company's:

(a) *assets for insurance acquisition cash flows to the extent that they are used to measure the company's adjusted *liability for remaining coverage; and

(b) deferred reinsurance expenses to the extent that they are used to measure the company's adjusted liability for remaining coverage; and

(c) recoveries receivable, or potential recoveries, measured under the *applicable insurance contracts standard to the extent that they relate to insurance contracts or reinsurance contracts; and

(d) claims handling costs that are neither attached to, nor directly attributable to, a particular claim, to the extent that these costs are used to measure the company's adjusted *liability for incurred claims; and

(e) loss components and loss-recovery components of onerous contracts to the extent that they are used to measure the company's adjusted liability for remaining coverage.