Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.5

  (1)   The object of this Division is to provide for the taxation of * life insurance companies in a broadly comparable way to other entities that * derive similar kinds of income.

  (2)   To achieve this object, the Division:

  (a)   identifies certain amounts that are included in the assessable income, or are * exempt income or * non - assessable non - exempt income, of a * life insurance company; and

  (b)   identifies certain amounts that a life insurance company can deduct; and

  (c)   enables a life insurance company to have taxable incomes and * tax losses of the following classes for the purposes of working out its income tax for an income year:

  (i)   the * complying superannuation class;

  (ii)   the * ordinary class; and

  (d)   contains other provisions necessary to enable the income tax on the taxable income of a life insurance company to be worked out.

Note:   Section   320 - 5 of the Income Tax (Transitional Provisions) Act 1997 provides that the tax consequences of certain transfers of assets of a life insurance company that is a friendly society to a complying superannuation fund are to be disregarded.