Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.55

  (1)   This section applies to a * life insurance company in respect of * life insurance policies where the company's liabilities under the policies are to be discharged out of * complying superannuation assets.

  (2)   The company can deduct:

  (a)   the amounts of the * life insurance premiums received in respect of the policies that are transferred to its * complying superannuation assets in the income year;

less:

  (b)   so much of those amounts as relate to the company's liability to pay amounts on the death or disability of a person.

  (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.