Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.75

  (1)   This section applies to a * life insurance company in respect of * ordinary investment policies issued by the company.

  (2)   The company can deduct, in respect of * life insurance premiums received in the income year for those policies:

  (a)   the sum of the * net premiums;

less:

  (b)   so much of the net premiums as an * actuary determines to be attributable to fees and charges charged in that income year.

  (3)   In making a determination under subsection   (2), an * actuary is to have regard to:

  (a)   the changes over the income year in the sum of the * net current termination values of the policies; and

  (b)   the movements in those values during the income year.

  (4)   In addition, if an * actuary determines that:

  (a)   there has been a reduction in the income year (the current year ) of exit fees that were imposed in respect of those policies in a previous income year; and

  (b)   the reduction (or a part of it) has not been taken into account in a determination under subsection   (2) for the current year;

the company can deduct so much of that reduction as has not been so taken into account.