Private ruling: Foreign assurance policy – surrender value
Date of advice: 22 August 2018
Published: October 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Is the lump sum payment you received representing the surrender value of a foreign life assurance policy included in your assessable income? | A1: No. The lump sum payment is not ordinary income or statutory income and as such is not included in your assessable income.

Relevant facts and circumstances: You are an Australian resident for tax purposes. You opened a foreign managed pension fund account. You are the original owner of the policy. You owned the policy for more than 10 years. You received a lump sum payment representing the surrender value of the policy.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 26AH | Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 118-300