Income Tax Assessment Act 1997

s 310-75 — Further consequences for roll ‑ overs involving life insurance companies

(1) Section 320 ‑ 200 (about consequences of transferring assets to or from a complying superannuation asset pool) does not apply for a transfer event for the roll ‑ over if either the transferring entity or the receiving entity is a * life insurance company. (2) If the receiving entity for the roll ‑ over is a * life insurance company, each received asset of that entity is taken: (a) to be a * complying superannuation asset of that entity; and (b) not to be, in whole or in part, a * life insurance premium.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-85 — Choices

(1) A choice under this Division must be made: (a) by the day the transferring entity’s * income tax return is lodged for the transfer year for the entity; or (b) within a further time allowed by the Commissioner. (2) The way the transferring entity’s * income tax return is prepared is sufficient evidence of the making of the choice.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13)

s 312-1 — What this Division is about

This Division deals with amounts transferred between KiwiSaver schemes and complying superannuation funds. This Division also deals with amounts paid by the Commissioner to KiwiSaver schemes.

Amendment history: Inserted by No 181 of 2012, effective Sch 1 (items 1–8, 12): 1 July 2013 (s 2(1) item 2) | Amended by No 118 of 2020, effective Sch 1: 12 Dec 2020 (s 2(1) item 2) Sch 2 (items 1–6): 11 Dec 2021 (s 2(1) item 3) Sch 3: 1 Jan 2021 (s 2(1) item 5)

s 312-5 — Division implements Arrangement with New Zealand

This Division, together with the Superannuation (Unclaimed Money and Lost Members) Act 1999 and regulations made under the Superannuation Industry (Supervision) Act 1993 , implement the Arrangement between the Government of Australia and the Government of New Zealand on Trans ‑ Tasman Retirement Savings Portability, signed at Brisbane on 16 July 2009.

Amendment history: Inserted by No 181 of 2012, effective Sch 1 (items 1–8, 12): 1 July 2013 (s 2(1) item 2) | Amended by No 118 of 2020, effective Sch 1: 12 Dec 2020 (s 2(1) item 2) Sch 2 (items 1–6): 11 Dec 2021 (s 2(1) item 3) Sch 3: 1 Jan 2021 (s 2(1) item 5)

s 312-10 — Amounts contributed to complying superannuation funds from KiwiSaver schemes

Treat amount as a contribution (1) An amount transferred from a * KiwiSaver scheme to a * complying superannuation fund in relation to you is treated as being a contribution you made to the complying superannuation fund for the purpose of providing * superannuation benefits for yourself. Note 1: The contribution will not be included in the assessable income of the trustee of the complying superannuation fund: see Division 295. Note 2: The contribution is not included in your concessional contributions: see section 291 ‑ 25. Some of the contribution may be included in your non ‑ concessional contributions: see subsection (3) of this section. (2) Division 290 (Contributions to superannuation funds), section 295 ‑ 200 (Transfers from foreign superannuation funds) and Subdivision 305 ‑ B (Superannuation benefits from foreign superannuation funds) do not apply to the contribution. Australian ‑ sourced amount and returning New Zealand ‑ sourced amount not non ‑ concessional (3) For the purposes of Subdivision 292 ‑ C (Excess non ‑ concessional contributions tax), disregard so much of the contribution as you or the * KiwiSaver scheme provider informs, in accordance with the regulations mentioned in section 312 ‑ 5, the trustee of the * complying superannuation fund is: (a) an * Australian ‑ sourced amount; or (b) a * returning New Zealand ‑ sourced amount. Note: The effect of subsection (3) is that the amounts mentioned in paragraphs (3)(a) and (b) are not included in your non ‑ concessional contributions. The rest of the contribution is included in your non ‑ concessional contributions: see subsection 292 ‑ 90(2). Assessable income and capital gains (4) The contribution is not assessable income of yours and is not * exempt income of yours. (5) Section 118 ‑ 305 (capital gain or capital loss disregarded) applies in relation to the amount transferred as if the * KiwiSaver scheme were a * superannuation fund. Tax free and taxable components of superannuation interest (6) Section 307 ‑ 220 (Contributions segment) only applies to so much (if any) of the contribution as you or the * KiwiSaver scheme provider inform, in accordance with the regulations mentioned in section 312 ‑ 5, the trustee of the * complying superannuation fund is: (a) a * New Zealand ‑ sourced amount; or (b) the * tax free component of an * Australian ‑ sourced amount. Note: So much of the value of an interest in the fund as consists of the amounts mentioned in paragraphs (6)(a) and (b) is included in the contributions segment and tax free component of the interest. So much of the value of that interest as consists of the rest of the contribution is not included in the contributions segment of the interest and is included in the taxable component of the interest. (The value of the interest may also consist of amounts other than the contribution.)

Amendment history: Inserted by No 181 of 2012, effective Sch 1 (items 1–8, 12): 1 July 2013 (s 2(1) item 2) | Amended by No 118 of 2013, effective Sch 1 (items 1, 4–11, 16–26, 38–79, 88–96, 110): 29 June 2013 (s 2(1) items 2–5, 11) Sch 1 (item 97): 1 July 2013 (s 2(1) item 6)

s 312-15 — Superannuation benefits paid from complying superannuation funds to KiwiSaver schemes

A * superannuation benefit paid to a * KiwiSaver scheme provider by the trustee of a * complying superannuation fund in respect of you is not assessable income of yours and is not * exempt income of yours.

Amendment history: Inserted by No 181 of 2012, effective Sch 1 (items 1–8, 12): 1 July 2013 (s 2(1) item 2) | Amended by No 118 of 2020, effective Sch 1: 12 Dec 2020 (s 2(1) item 2) Sch 2 (items 1–6): 11 Dec 2021 (s 2(1) item 3) Sch 3: 1 Jan 2021 (s 2(1) item 5)

s 312-20 — Superannuation benefits paid by Commissioner to KiwiSaver schemes

An * unclaimed money payment that you are taken to receive under section 307 ‑ 15 because it is paid to a KiwiSaver scheme provider by the Commissioner in accordance with the Superannuation (Unclaimed Money and Lost Members) Act 1999 is not assessable income and is not * exempt income.

Amendment history: Inserted by No 118 of 2020, effective Sch 1: 12 Dec 2020 (s 2(1) item 2) Sch 2 (items 1–6): 11 Dec 2021 (s 2(1) item 3) Sch 3: 1 Jan 2021 (s 2(1) item 5)

s 313-1 — What this Division is about

If an amount is released from your superannuation interests under the first home super saver scheme, an amount may be included in your assessable income and you may become entitled to a tax offset. You also have a limited period within which to enter into a contract to purchase or construct a residential premises or re ‑ contribute an amount to your superannuation. If you do not notify the Commissioner that you have done one of those things, you become liable for tax.

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-5 — Object of this Division

The object of this Division is to provide an individual with concessional tax treatment for amounts released from superannuation for the purposes of purchasing or constructing the individual’s first home.

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-10 — Application of this Division

This Division applies to you for one or more amounts (the FHSS released amounts ) if: (a) those amounts are paid in response to a release authority issued under Division 131 in Schedule 1 to the Taxation Administration Act 1953 in relation to a * first home super saver determination made in relation to you; and (b) your entitlements under section 131 ‑ 65 in that Schedule to credits relating to those amounts have not ceased under subsection 131 ‑ 30(4) or 138 ‑ 13(3) in that Schedule.

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3) | Repealed and substituted by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11)

s 313-15 — What this Subdivision is about

An amount is included in your assessable income, and you are entitled to a tax offset, if: (a) an amount is paid in response to a release authority issued in respect of you; and (b) your entitlement to a credit relating to that amount has not ceased. The amount included in your assessable income relates to the concessional contributions and total associated earnings that are stated in the relevant first home super saver determination. Table of sections Operative provisions 313 ‑ 20 Amount included in assessable income 313 ‑ 25 Amount of the tax offset

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11)

s 313-20 — Amount included in assessable income

(1) Your assessable income, for the income year that corresponds to the * financial year for which you requested the release authority, includes an amount that is equal to the sum of the following amounts stated in the * first home super saver determination: (a) your * concessional contributions; (b) your associated earnings. (2) However, if the sum of the * FHSS released amounts is less than the * FHSS maximum release amount stated in the determination, the amount included in your assessable income for the income year is: (a) the amount worked out under subsection (1); less (b) the difference between the FHSS maximum release amount and the sum of the FHSS released amounts. (3) If the amount worked out under subsection (2) is negative, the amount included in your assessable income for the income year is nil. Note 1: The release authorities are issued under Division 131 in Schedule 1 to the Taxation Administration Act 1953 . Note 2: Any amounts paid in response to the release authorities are non ‑ assessable non ‑ exempt income (see section 303 ‑ 15).

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-25 — Amount of the tax offset

You are entitled, for the income year mentioned in section 313 ‑ 20, to a * tax offset that is equal to 30% of your * assessable FHSS released amount for the income year. Note: This offset cannot be refunded, transferred or carried forward (see item 20 of the table in subsection 63 ‑ 10(1)).

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-30 — What this Subdivision is about

If an amount is released from your superannuation interests under the first home super saver scheme, and you enter into a contract within a particular period to purchase or construct a residential premises, you must notify the Commissioner of that contract. Table of sections Operative provisions 313 ‑ 35 Purchasing or constructing a residential premises 313 ‑ 40 Notifying Commissioner

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-35 — Purchasing or constructing a residential premises

(1) Section 313 ‑ 40 applies to you if: (a) a * first home super saver determination is made in relation to you; and (b) you make a valid request (the current request ) under section 131 ‑ 5 in Schedule 1 to the Taxation Administration Act 1953 for a release authority in relation to that determination; and (ba) that current request is your first such request, or one of the following subparagraphs applies for each of your previous valid requests for such a release authority: (i) you have withdrawn the request; (ii) the Commissioner has revoked the release authority issued in relation to the request (whether or not the release authority had previously been varied); (iii) after one or more amendments of the request, you have withdrawn the latest of those amended requests; (iv) the Commissioner has revoked the release authority issued in relation to the latest of one or more amendments of the request (whether or not the release authority had previously been varied); and (c) you enter into a contract to purchase or construct a * CGT asset that is a * residential premises in Australia within the period: (i) beginning 90 days before the day you make the first of the valid requests referred to in paragraph (ba); and (ii) ending 12 months (or if extended under subsection (2), that longer period) after the day you make the current request; and (d) the price for the purchase or construction of the premises is at least equal to the total amount to be released that is stated in the current request; and (e) you have occupied the premises, or intend to occupy the premises as soon as practicable; and (f) you intend to occupy the premises for at least 6 months of the first 12 months after it is practicable to occupy the premises. (2) The Commissioner may extend the period for entering into a contract by up to 12 months. Note: If you request an extension of the period, you may object against a decision of the Commissioner under this section (see section 313 ‑ 85).

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 49 of 2019, effective Sch 3 (item 1) and Sch 4 (items 71–94, 111): 1 July 2019 (s 2(1) items 10, 12) | Amended by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11)

s 313-40 — Notifying Commissioner

(1) You must notify the Commissioner in the * approved form of the matters set out in paragraphs 313 ‑ 35(1)(a) to (f). (2) The notification must be made within the 90 ‑ day period, or such longer period as the Commissioner allows, after the day you enter into the contract to purchase or construct the * residential premises. Note: If you request an extension of the period, you may object against a decision of the Commissioner under this subsection (see section 313 ‑ 85). (3) Subsection (1) does not limit the information that the * approved form may require the notification to contain.

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 49 of 2019, effective Sch 3 (item 1) and Sch 4 (items 71–94, 111): 1 July 2019 (s 2(1) items 10, 12) | Amended by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11)

s 313-45 — What this Subdivision is about

If an amount is released from your superannuation interests under the first home super saver scheme, and you do not enter into a contract within a particular period to purchase or construct a residential premises, you may make one or more non ‑ concessional contributions. If you do not notify the Commissioner that you have made the contributions, you may be liable for tax under Subdivision 313 ‑ E. Table of sections Operative provisions 313 ‑ 50 Contributing amounts to superannuation

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-50 — Contributing amounts to superannuation

(1) This section applies to you if: (a) you do not notify the Commissioner in accordance with section 313 ‑ 40 (about purchasing or constructing a * residential premises); and (b) you make one or more * non ‑ concessional contributions the sum of which is at least equal to: (i) your * assessable FHSS released amount for an income year; less (ii) the amount withheld by the Commissioner from your * FHSS released amounts under section 12 ‑ 460 in Schedule 1 to the Taxation Administration Act 1953 ; and (c) you make the contributions within the period mentioned in paragraph 313 ‑ 35(1)(c). Note: Paragraph 313 ‑ 35(1)(c) sets out the period in which you must have entered into a contract to purchase or construct a residential premises. (2) You may notify the Commissioner in the * approved form that you have made the contributions mentioned in paragraph (1)(b). Note 1: If you notify the Commissioner, you cannot deduct the contribution (see section 290 ‑ 168). Note 2: If you do not notify the Commissioner, you may be liable for tax (see Subdivision 313 ‑ E). (3) The notification must be made within the period mentioned in paragraph 313 ‑ 35(1)(c) or such longer period as the Commissioner allows under this subsection. Note: If you request an extension of the period, you may object against a decision of the Commissioner under this subsection (see section 313 ‑ 85). (4) Subsection (2) does not limit the information that the * approved form may require the notification to contain.

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 49 of 2019, effective Sch 3 (item 1) and Sch 4 (items 71–94, 111): 1 July 2019 (s 2(1) items 10, 12)

s 313-55 — What this Subdivision is about

If an amount is released from your superannuation interests under the first home super saver scheme, you are liable for tax if you do not, within a particular period, do either of the following: (a) enter into a contract to purchase or construct a residential premises, and notify the Commissioner of that contract; (b) make one or more non ‑ concessional contributions, and notify the Commissioner of the contributions. Table of sections Operative provisions 313 ‑ 60 First home super saver tax 313 ‑ 65 When tax is payable—original assessments 313 ‑ 70 When tax is payable—amended assessments 313 ‑ 75 General interest charge

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-60 — First home super saver tax

You are liable to pay * first home super saver tax if: (a) neither of section 313 ‑ 40 or 313 ‑ 50 applies to you; or (b) section 313 ‑ 40 applies to you and you do not notify the Commissioner in accordance with that section; or (c) section 313 ‑ 50 applies to you and you do not notify the Commissioner in accordance with that section. Note 1: The amount of the tax is set out in the First Home Super Saver Tax Act 2017 . Note 2: Section 313 ‑ 40 is about purchasing or constructing a residential premises. Section 313 ‑ 50 is about making one or more non ‑ concessional contributions.

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-65 — When tax is payable—original assessments

Your * assessed first home super saver tax is due and payable at the end of 21 days after the Commissioner gives you notice of the assessment of the amount of the * first home super saver tax. Note: For assessments of first home super saver tax, see Division 155 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-70 — When tax is payable—amended assessments

If the Commissioner amends your assessment, any extra * assessed first home super saver tax resulting from the amendment is due and payable 21 days after the day the Commissioner gives you notice of the amended assessment.

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-75 — General interest charge

If an amount of * assessed first home super saver tax that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the * general interest charge on the unpaid amount for each day in the period that: (a) begins on the day on which the amount was due to be paid; and (b) ends on the last day on which, at the end of the day, any of the following remains unpaid: (i) the assessed first home super saver tax; (ii) general interest charge on any of the assessed first home super saver tax. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-80 — What this Subdivision is about

You may object against particular decisions made under this Division. Table of sections Operative provisions 313 ‑ 85 Review rights for decisions made under this Division

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 313-85 — Review rights for decisions made under this Division

(1) If: (a) you requested the Commissioner to allow a longer period under: (i) subsection 313 ‑ 35(2) (for entering into a contract to purchase or construct a * residential premises); or (ii) subsection 313 ‑ 40(2) or 313 ‑ 50(3) (for notifying the Commissioner of matters); and (b) you are dissatisfied with: (i) a decision under that subsection allowing a longer period; or (ii) a decision the Commissioner makes not to allow a longer period; you may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953 . (2) To avoid doubt, for the purposes of paragraph (e) of Schedule 1 to the Administrative Decisions (Judicial Review) Act 1977 , the making of a decision under a subsection mentioned in paragraph (1)(a) of this section is a decision forming part of the process of making an assessment of tax, and making a calculation of charge, under this Act. Income Tax Assessment Act 1997 No. 38, 1997 Compilation No. 266 Compilation date: 1 July 2026 Includes amendments: Act No. 17, 2025, Act No. 57, 2025, Act No. 49, 2026 and Act No. 58, 2026 This compilation is in 12 volumes Volume 1: Chapter 1, Part 1 ‑ 1 to Chapter 2, Part 2 ‑ 5 sections 1 ‑ 1 to 36 ‑ 55 Volume 2: Chapter 2, Part 2 ‑ 10 to Chapter 2, Part 2 ‑ 20 sections 40 ‑ 1 to 67 ‑ 30 Volume 3: Chapter 2, Part 2 ‑ 25 to Chapter 3, Part 3 ‑ 1 sections 70 ‑ 1 to 121 ‑ 35 Volume 4: Chapter 3, Part 3 ‑ 3 to Chapter 3, Part 3 ‑ 5 sections 122 ‑ 1 to 197 ‑ 85 Volume 5: Chapter 3, Part 3 ‑ 6 to Chapter 3, Part 3 ‑ 10 sections 200 ‑ 1 to 253 ‑ 15 Volume 6: Chapter 3, Part 3 ‑ 25 to Chapter 3, Part 3 ‑ 30 sections 275 ‑ 1 to 313 ‑ 85 Volume 7: Chapter 3, Part 3 ‑ 32 to Chapter 3, Part 3 ‑ 50 sections 315 ‑ 1 to 421 ‑ 85 Volume 8: Chapter 3, Part 3 ‑ 80 to Chapter 3, Part 3 ‑ 90 sections 615 ‑ 1 to 721 ‑ 40 Volume 9: Chapter 3, Part 3 ‑ 95 to Chapter 4, Part 4 ‑ 5 sections 723 ‑ 1 to 880 ‑ 205 Volume 10: Chapter 5, Part 5 ‑ 30 to Chapter 6, Part 6 ‑ 5 sections 900 ‑ 1 to 995 ‑ 1 Volume 11: Endnotes 1 to 3 Volume 12: Endnote 4 Each volume has its own contents About this compilation This compilation This is a compilation of the Income Tax Assessment Act 1997 that shows the text of the law as amended and in force on 1 July 2026 (the compilation date ). The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). Application, saving and transitional provisions If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Presentational changes The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register. Self ‑ repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents

Amendment history: Inserted by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3)

s 315-1 — What this Division is about

This Division sets out the taxation consequences of the demutualisation of private health insurers. Policy holders, demutualising health insurers and certain other entities can disregard capital gains and losses arising under a demutualisation (see Subdivision 315 ‑ A). Shares and rights issued under the demutualisation are given a cost base based on the market value of the demutualising health insurer at the time of issue (see Subdivisions 315 ‑ B and 315 ‑ D). Assets held by a lost policy holders trust are given roll ‑ over relief if transferred to the lost policy holder, or if the lost policy holder becomes absolutely entitled to them. Otherwise the trustee of the lost policy holders trust is taxed on any capital gains (see Subdivision 315 ‑ C). A legal personal representative can disregard capital gains and losses made when passing an asset to a beneficiary of a policy holder’s estate (see Subdivision 315 ‑ E). Shares, rights or cash received under a demutualisation are not assessable income and not exempt income (see Subdivision 315 ‑ F).

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-5 — Policy holders to disregard capital gains and losses related to demutualisation of private health insurer

Disregard a * capital gain or * capital loss of an individual from a * CGT event that happens in relation to a * CGT asset if: (a) the CGT event happens under a demutualisation to which this Division applies; and (b) the individual is, or has been, a policy holder (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 ) of, or another person insured through, the demutualising entity (the demutualising health insurer ); and (c) the CGT asset is covered by section 315 ‑ 20.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 315-10 — Effect on the legal personal representative or beneficiary

Disregard a * capital gain or * capital loss of an entity from a * CGT event that happens in relation to a * CGT asset if: (a) the CGT asset forms part of the estate of a deceased individual who is mentioned in paragraph 315 ‑ 5(b); and (b) the entity is the deceased individual’s * legal personal representative or a beneficiary in the deceased individual’s estate; and (c) the CGT asset devolves to the entity or * passes to the entity; and (d) the CGT event happens under a demutualisation to which this Division applies; and (e) the CGT asset is covered by section 315 ‑ 20.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-15 — Demutualisations to which this Division applies

This Division applies to a demutualisation of an entity if: (a) the entity: (i) is an entity to which item 6.3 of the table in section 50 ‑ 30 applies; and (ii) is not registered under Part 3 of the Life Insurance Act 1995 ; and (iia) is not an entity to whose demutualisation Division 316 applies; and (iii) does not have capital divided into shares; and Note: Item 6.3 of the table in section 50 ‑ 30 applies to a private health insurer within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 that is not carried on for the profit or gain of its individual members. (b) an application by the entity to convert to being registered as a for profit insurer (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 ) is approved under subsection 20(5) of that Act; and (c) consistently with the conversion scheme mentioned in paragraph 20(2)(a) of that Act, the entity becomes registered as a for profit insurer (within the meaning of that Act).

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010 | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 315-20 — What assets are covered

These * CGT assets are covered: (a) an interest in the demutualising health insurer as a policy holder; (b) a membership interest in the demutualising health insurer; (c) a right or interest of another kind in the demutualising health insurer; (d) a right or interest of another kind that arises under the demutualisation.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-25 — Demutualising health insurers to disregard capital gains and losses related to demutualisation

Disregard a * capital gain or * capital loss of an entity from a * CGT event if: (a) the CGT event happened under a demutualisation to which this Division applies; and (b) the entity is the demutualising health insurer.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-30 — Other entities to disregard capital gains and losses related to demutualisation

Disregard a * capital gain or * capital loss of an entity from a * CGT event if: (a) the entity is established solely for the purpose of participating in a demutualisation to which this Division applies; and (b) the entity is not a trust covered by Subdivision 315 ‑ C (about lost policy holders); and (c) the CGT event: (i) happened under a demutualisation to which this Division applies; and (ii) happened before or at the same time as the allocation or distribution (in the form of shares or cash) of the accumulated surplus of the demutualising health insurer; and (iii) was connected to that allocation or distribution. Note: The allocation or distribution of the accumulated surplus could happen through an arrangement involving more than one transaction.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-80 — Cost base and acquisition time of demutualisation assets

Cost base adjustment (1) The first element of the * cost base and * reduced cost base of a * CGT asset is its * market value on the day it is issued if: (a) the asset is covered by section 315 ‑ 85 (a demutualisation asset ); and (b) the asset is issued to an entity (a participating policy holder ) covered by section 315 ‑ 90. Note: There is an exception to this rule in Subdivision 315 ‑ D where the asset is a share or right in a holding company with other assets. Acquisition rule (2) The participating policy holder is taken to have * acquired the demutualisation asset at the time it is issued.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-85 — Demutualisation asset

(1) This section covers an asset if: (a) the asset is: (i) a share in the demutualising health insurer; or (ii) a right to * acquire a share in the demutualising health insurer; or (iii) a share in an entity that owns all of the shares in the demutualising health insurer; or (iv) a right to acquire a share in an entity mentioned in subparagraph (iii); and (b) the share or right is issued under a demutualisation to which this Division applies; and (c) the share or right is issued in connection with: (i) the variation or abrogation of rights attaching to or consisting of a * CGT asset covered by section 315 ‑ 20; or (ii) the conversion, cancellation, extinguishment or redemption of such a CGT asset. Exclusion for rights with an exercise price (2) Despite subsection (1), this section does not cover a right to * acquire a share in an entity if the holder of the right must pay an amount to exercise the right. Exclusion where assets not issued simultaneously (3) Despite subsection (1), an asset is not covered by this section unless all of the assets covered by subsection (1) for the demutualisation in question are issued: (a) at the same time; and (b) to an entity that is either: (i) a participating policy holder (see section 315 ‑ 90); or (ii) the trustee of a trust covered by Subdivision 315 ‑ C (about the lost policy holders trust).

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-90 — Participating policy holders

(1) This section covers an individual who: (a) is, or has been, a policy holder (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 ) of, or another person insured through, the demutualising health insurer; and (b) is entitled, under the demutualisation, to an allocation of demutualisation assets. (2) This section also covers an entity who became entitled to an allocation of demutualisation assets because of the death of an individual mentioned in subsection (1).

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 315-140 — Lost policy holders trust

This Subdivision covers a trust (a lost policy holders trust ) in relation to a demutualisation to which this Division applies if: (a) the conversion scheme mentioned in paragraph 20(2)(a) of the Private Health Insurance (Prudential Supervision) Act 2015 for the demutualisation provides for the trust; and (b) under the demutualisation, demutualisation assets (see section 315 ‑ 85) are issued to the trustee of the trust; and (c) the trust exists solely for the purpose of holding shares or rights to * acquire shares on behalf of: (i) individuals ( lost policy holders ) who are, or have been, policy holders (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 ) of, or other persons insured through, the demutualising health insurer; or (ii) if the lost policy holder has died—the * legal personal representative of the lost policy holder or a beneficiary in the estate of the lost policy holder. Example: An example of an individual on whose behalf the trust might hold assets would be an individual who has not completed a formal step required for them to be issued with demutualisation assets directly. Another example might be an individual living overseas.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 315-145 — CGT treatment of demutualisation assets in lost policy holders trust

Cost base adjustment (1) The first element of the * cost base and * reduced cost base of a demutualisation asset issued to the trustee of a lost policy holders trust is its * market value on the day it is issued. Note: There is an exception to this rule in Subdivision 315 ‑ D where the asset is a share or right in a holding company with other assets. Acquisition rule (2) The trustee is taken to have * acquired the demutualisation asset at the time it is issued.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-150 — Roll ‑ over where assets transferred to lost policy holder

(1) This section applies in relation to a * CGT event if: (a) the CGT event happens in relation to an asset held by the trustee of a lost policy holders trust on behalf of a lost policy holder; and (b) the CGT event happens because the lost policy holder (or, if the lost policy holder has died, the * legal personal representative of the lost policy holder or a beneficiary in the estate of the lost policy holder) either: (i) is transferred the asset by the trustee; or (ii) becomes absolutely entitled to the asset. Note: The asset may be a demutualisation asset, or some other asset. Consequence for trustee (2) Disregard a * capital gain or * capital loss the trustee makes from the * CGT event. Consequence for lost policy holder (3) The * cost base of the asset in the hands of the trustee of the lost policy holders trust just before the * CGT event becomes the first element of the cost base and * reduced cost base of the asset in the hands of the lost policy holder, * legal personal representative or beneficiary. (4) The lost policy holder, * legal personal representative or beneficiary is taken to have * acquired the asset when the trustee of the lost policy holders trust acquired it.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-155 — Trustee assessed if assets dealt with not for benefit of lost policy holder

(1) This section applies in relation to a * capital gain from a * CGT event if: (a) the CGT event happens in relation to an asset held by the trustee of a lost policy holders trust; and (b) section 315 ‑ 150 does not apply to the CGT event. (2) If this section applies: (a) sections 115 ‑ 215 and 115 ‑ 220 do not apply in relation to the * capital gain; and (b) for the purposes of this Act, the trustee is taken to be * specifically entitled to all of the capital gain.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 62 of 2011, effective Sch 1 (items 1–3, 6–12, 14), Sch 2 (items 8–27, 45–51), Sch 3 (items 1–3, 9–19) and Sch 4 (items 33, 34): 29 June 2011 (s 2(1) items 2, 3, 5, 6) Sch 3 (items 4–8): 30 June 2011 (s 2(1) item 4)

s 315-160 — Subdivision 126 ‑ E does not apply to lost policy holders trust

Subdivision 126 ‑ E does not apply in relation to a demutualisation to which this Division applies.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-210 — Cost base for shares and rights in certain holding companies

(1) This section applies in relation to a * CGT asset that is a demutualisation asset if: (a) the demutualisation asset is: (i) a share in an entity mentioned in subparagraph 315 ‑ 85(1)(a)(iii); or (ii) a right to * acquire a share in an entity mentioned in that subparagraph; and (b) the entity owns other assets in addition to the shares in the demutualising health insurer; and (c) the share or right is issued to a participating policy holder or the trustee of a lost policy holders trust. This section applies despite sections 315 ‑ 80 and 315 ‑ 145. Cost base adjustment (2) The first element of the * cost base and * reduced cost base of the * CGT asset is worked out under the method statement. Method statement Step 1. Start with the * market value of the demutualising health insurer on the day the asset is issued. Step 2. Divide the result of step 1 by the sum of: (a) the number of shares in the entity that are issued under the demutualisation; and (b) the number of shares in the entity that can be * acquired under rights that are demutualisation assets issued under the demutualisation. Step 3. The result of step 2 is the first element of the * cost base and * reduced cost base of the asset, unless the asset is a right. Step 4. If the asset is a right, multiply the result of step 2 by the number of shares that can be * acquired under the right. The result is the first element of the * cost base and * reduced cost base of the asset. Example: Wellbeing Health demutualises on 1 April 2008 and has a market value of $400 million on that day. It distributes its accumulated mutual surplus in the form of rights to acquire shares in its holding company Healthiness Insurance Ltd (Healthiness). The rights do not have an exercise price. A total of 800 million shares can be acquired in Healthiness under rights issued under the demutualisation. Each right allows the holder to acquire 50 shares. No shares in Healthiness are issued. Under the method statement, the first element of the cost base and reduced cost base of each right is worked out by dividing the market value of Wellbeing Health (step 1) by the number of shares in Healthiness that can be acquired under the demutualisation (step 2) and multiplying the result by the number of shares that can be acquired under the right (step 4): Acquisition rule (3) The participating policy holder or trustee is taken to have * acquired the * CGT asset at the time it is issued.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-260 — Special CGT rule for legal personal representatives and beneficiaries

(1) This section sets out what happens if a * CGT asset: (a) is a demutualisation asset; and (b) forms part of the estate of a participating policy holder mentioned in subsection 315 ‑ 90(1) who has died, but was not owned by the policy holder just before dying; and (c) * passes to a beneficiary in the policy holder’s estate because the asset is transferred to the beneficiary by the policy holder’s * legal personal representative. Note: Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying. (2) Disregard a * capital gain or * capital loss the * legal personal representative makes if the asset * passes to a beneficiary in the policy holder’s estate. Consequence for beneficiary (3) The * cost base and * reduced cost base of the asset in the hands of the * legal personal representative just before the asset * passes to the beneficiary becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary. (4) The beneficiary is taken to have * acquired the asset when the * legal personal representative acquired it.

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 315-310 — General taxation consequences of issue of demutualisation assets etc.

(1) An amount of * ordinary income or * statutory income of an entity to which subsection (2) applies is not assessable and not * exempt income if: (a) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a demutualisation asset was issued to the entity; or (b) the amount is a payment made to the entity, under a demutualisation to which this Division applies, in connection with: (i) the variation or abrogation of rights attaching to or consisting of a * CGT asset covered by section 315 ‑ 20; or (ii) the conversion, cancellation, extinguishment or redemption of such a CGT asset. (2) This subsection applies to an entity that: (a) is, or has been, a policy holder (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 ) of, or another person insured through, the demutualising health insurer; or (b) is issued with the demutualisation asset, or receives the payment, because of the death of a policy holder mentioned in paragraph (a).

Amendment history: Inserted by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 316-1 — What this Division is about

Special tax consequences follow the demutualisation of a friendly society that provides health insurance or life insurance, or has a wholly ‑ owned subsidiary that does.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-5 — Application of this Division

This Division applies in relation to a demutualisation of a * friendly society if: (a) the society is, or has a * wholly ‑ owned subsidiary (a health/life insurance subsidiary ) that is: (i) a private health insurer as defined in the Private Health Insurance (Prudential Supervision) Act 2015 ; or (ii) a company registered under section 21 of the Life Insurance Act 1995 ; and (b) the society does not have capital divided into * shares held by its * members; and (c) after the demutualisation the society is to be carried on for the object of securing a profit or pecuniary gain for its * members.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010 | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 316-50 — What this Subdivision is about

Disregard capital gains and losses made by any entity from a CGT event happening under the demutualisation, unless the entity: (a) is or has been a member of the friendly society or insured through the society or any of its wholly ‑ owned subsidiaries; and (b) receives money for the event. Table of sections Gains and losses of members, insured entities and successors 316 ‑ 55 Disregarding capital gains and losses, except some involving receipt of money 316 ‑ 60 Taking account of some capital gains and losses involving receipt of money 316 ‑ 65 Valuation factor for sections 316 ‑ 60, 316 ‑ 105 and 316 ‑ 165 316 ‑ 70 Value of the friendly society Friendly society’s gains and losses 316 ‑ 75 Disregarding friendly society’s capital gains and losses Other entities’ gains and losses 316 ‑ 80 Disregarding other entities’ capital gains and losses

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-55 — Disregarding capital gains and losses, except some involving receipt of money

(1) Disregard an entity’s * capital gain or * capital loss from a * CGT event that happens under the demutualisation to a * CGT asset if: (a) the entity: (i) is or has been a * member of the * friendly society; or (ii) is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; and (b) the CGT asset is one of these (an interest affected by demutualisation ): (i) an interest in the friendly society as the owner or holder of a policy of insurance with the friendly society or health/life insurance subsidiary; (ii) a * membership interest in the friendly society; (iii) a right or interest of another kind in the friendly society; (iv) a right or interest of another kind that arises under the demutualisation, except an interest in a lost policy holders trust (see section 316 ‑ 155). Note: Subdivision 316 ‑ D deals with the effects of CGT events happening to interests in lost policy holders trusts. (2) Disregard a * capital gain or * capital loss of an entity (the successor ) from a * CGT event that happens under the demutualisation to a * CGT asset if: (a) the successor is the * legal personal representative, or beneficiary in the estate, of a deceased individual who was: (i) a * member of the * friendly society; or (ii) insured through the friendly society or a health/life insurance subsidiary of the friendly society; and (b) the CGT asset: (i) forms part of the deceased individual’s estate; and (ii) devolves or * passes to the successor; and (iii) is an interest affected by demutualisation (see paragraph (1)(b)).

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-60 — Taking account of some capital gains and losses involving receipt of money

(1) This section applies if: (a) a * CGT event happens under the demutualisation to an entity’s interest affected by demutualisation (see section 316 ‑ 55); and (b) the event involves: (i) the variation or abrogation of rights attaching to or consisting of the interest; or (ii) the conversion, cancellation, extinguishment or redemption of the interest; and (c) either: (i) the entity is one described in paragraph 316 ‑ 55(1)(a); or (ii) the entity is one described in paragraph 316 ‑ 55(2)(a) and the interest is a * CGT asset described in paragraph 316 ‑ 55(2)(b); and (d) the * capital proceeds from the event include or consist of money received by the entity. (2) Work out whether the entity makes a * capital gain or * capital loss from the * CGT event, and the amount of the gain or loss, assuming that: (a) the * capital proceeds from the CGT event were the amount they would be if they did not include any * market value of property other than money; and (b) the * cost base and * reduced cost base for the interest were the amount worked out using the formula: Example: Assume the entity receives $50 in money and 10 shares with a market value of $4 each in respect of CGT event C2 happening, and that the valuation factor worked out under section 316 ‑ 65 is 0.9. The entity makes a capital gain from the event of $5, worked out as follows: This ignores the market value of the shares because they are property other than money. Note: Division 114 (Indexation of cost base) is not relevant, because this section provides exhaustively for working out the amount of the cost base. (3) The * capital gain or * capital loss is not to be disregarded, despite: (a) section 316 ‑ 55; and (b) any provision of this Act for disregarding the * capital gain or * capital loss because the interest affected by demutualisation was * acquired before 20 September 1985. Note: The capital gain is not a discount capital gain: see section 115 ‑ 55.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-65 — Valuation factor for sections 316 ‑ 60, 316 ‑ 105 and 316 ‑ 165

(1) For the purposes of sections 316 ‑ 60, 316 ‑ 105 and 316 ‑ 165, the valuation factor is the amount worked out using the formula: where: embedded value of the friendly society’s other business (if any) means the amount that would be the value of the * friendly society worked out under section 316 ‑ 70 assuming that neither the friendly society, nor any health/life insurance subsidiary of it, carried on any health insurance business within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 . market value of the friendly society’s health insurance business (if any) means the total * market value of every health insurance business, within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 , carried on by either or both of the * friendly society and its health/life insurance subsidiaries (if any), taking account of any consideration paid to the society or subsidiary for disposal or control of that business. (2) Disregard paragraph 316 ‑ 60(2)(a) for the purposes of the formula in subsection (1) of this section.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015 | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 316-70 — Value of the friendly society

(1) The value of the * friendly society is the sum, worked out in accordance with this section, of the friendly society’s existing business value and its adjusted net worth on the day (the applicable accounting day ) identified under subsection (3). Eligible actuary and Australian actuarial practice (2) The sum is to be worked out, according to Australian actuarial practice, by an * actuary who is not an employee of: (a) the * friendly society; or (b) a health/life insurance subsidiary of the friendly society; or (c) an entity of which the friendly society is to become a * wholly ‑ owned subsidiary under the demutualisation. Applicable accounting day (3) The applicable accounting day is: (a) if an accounting period of the * friendly society ends on the day (the demutualisation resolution day ) identified under subsection (4)—that day; or (b) in any other case—the last day of the most recent accounting period of the friendly society ending before the demutualisation resolution day. Demutualisation resolution day (4) The demutualisation resolution day is: (a) the day on which the resolution to proceed with the demutualisation is passed; or (b) if, under the demutualisation, the whole of the * life insurance business of the * friendly society or of a health/life insurance subsidiary of the friendly society is transferred to another company under a scheme confirmed by the Federal Court of Australia—the day (or the last day) on which the transfer takes place. Adjustment for changes after applicable accounting day (5) In a case covered by paragraph (3)(b), if any significant change in the amount of the existing business value or adjusted net worth occurs between the applicable accounting day and the demutualisation resolution day, the amount is to be adjusted to take account of the change. Continued business assumption (6) In working out the existing business value or the adjusted net worth, assume: (a) that after the applicable accounting day the * friendly society, and any health/life insurance subsidiary of the friendly society, will continue to conduct * business and any other activity in the same way as before that day, and will not conduct any different business or other activity; and (b) that the demutualisation will not occur; and (c) that any health/life insurance subsidiary of the friendly society will continue to be a * wholly ‑ owned subsidiary of the friendly society. Expenditure assumption (7) In working out the existing business value, assume that expenditure that the * friendly society and any of its health/life insurance subsidiaries will incur, in conducting * business, on recurring items after the demutualisation resolution day will be of the same kinds and amounts (increased to take account of any inflation) as it incurred in the accounting period, or part of an accounting period, ending on the demutualisation resolution day.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-75 — Disregarding friendly society’s capital gains and losses

Disregard the * friendly society’s * capital gain or * capital loss from a * CGT event that happens under the demutualisation.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-80 — Disregarding other entities’ capital gains and losses

Disregard an entity’s * capital gain or * capital loss from a * CGT event that happens under the demutualisation if: (a) the entity is established solely for the purpose of participating in the demutualisation and is not a lost policy holders trust (see section 316 ‑ 155); and (b) the CGT event: (i) happens before or at the same time as the allocation or distribution of the accumulated surplus of the * friendly society; and (ii) is connected to that allocation or distribution. Note: The allocation or distribution of the accumulated surplus could happen through an arrangement involving more than one transaction.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-100 — What this Subdivision is about

The value of the friendly society and its business affects cost bases of shares and certain rights issued under the demutualisation to: (a) entities that are or were members of the friendly society; or (b) entities insured through the society or its subsidiaries; or (c) successors of such entities; or (d) the trustee of the lost policy holders trust. Table of sections 316 ‑ 105 Cost base and time of acquisition of shares and certain rights issued under demutualisation 316 ‑ 110 Demutualisation assets 316 ‑ 115 Entities to which section 316 ‑ 105 applies

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-105 — Cost base and time of acquisition of shares and certain rights issued under demutualisation

First element of cost base (1) The first element of the * cost base and * reduced cost base of a * CGT asset is the amount worked out using the formula in subsection (2) if: (a) the asset is a CGT asset (a demutualisation asset ) covered by section 316 ‑ 110; and (b) the asset is issued to an entity covered by section 316 ‑ 115. (2) The formula is: Time of acquisition (3) The entity is taken to have * acquired the * CGT asset at the time it is issued.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-110 — Demutualisation assets

(1) This section covers a * CGT asset that: (a) is: (i) a * share in the * friendly society; or (ii) a right to * acquire a share in the friendly society; or (iii) a share in an entity that owns all of the shares in the friendly society; or (iv) a right to acquire a share in an entity mentioned in subparagraph (iii); and (b) is issued under the demutualisation; and (c) is issued in connection with: (i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation (see paragraph 316 ‑ 55(1)(b)); or (ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation. Exclusion for rights with an exercise price (2) Despite subsection (1), this section does not cover a right to * acquire a * share in an entity if the holder of the right must pay an amount to exercise the right. Exclusion where assets not issued simultaneously (3) Despite subsection (1), a * CGT asset is not covered by this section unless all of the CGT assets covered by subsection (1) for the demutualisation are issued: (a) at the same time; and (b) to entities that are covered by section 316 ‑ 115.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-115 — Entities to which section 316 ‑ 105 applies

(1) This section covers an entity that: (a) either: (i) is or has been a * member of the * friendly society; or (ii) is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; and (b) is entitled under the demutualisation to an allocation of demutualisation assets. (2) This section also covers an entity that has become entitled to an allocation of demutualisation assets because of the death of an individual who was an entity described in subsection (1). (3) This section also covers the trustee of a lost policy holders trust (see section 316 ‑ 155).

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-150 — What this Subdivision is about

If the demutualisation creates a trust just to hold shares, rights to acquire shares or money for entities that were members of the friendly society or insured through the society or its subsidiary, or are successors of such entities, then: (a) capital gains or losses from CGT events happening to beneficiaries’ interests in the trust are disregarded, except where the capital proceeds include money; and (b) when a CGT event happens involving the transfer of the shares or rights to a beneficiary, or a beneficiary’s absolute entitlement to them, the trustee’s capital gain or loss is disregarded and the beneficiary has the same cost base and time of acquisition as the trustee; and (c) the trustee is assessed on any capital gains from other CGT events happening to the shares or rights. Table of sections Application 316 ‑ 155 Lost policy holders trust Effects of CGT events happening to interests and assets in trust 316 ‑ 160 Disregarding beneficiaries’ capital gains and losses, except some involving receipt of money 316 ‑ 165 Taking account of some capital gains and losses involving receipt of money by beneficiaries 316 ‑ 170 Roll ‑ over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust 316 ‑ 175 Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust 316 ‑ 180 Subdivision 126 ‑ E does not apply

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-155 — Lost policy holders trust

(1) This Subdivision applies if the conditions in subsections (2) and (5) are met. First condition (2) The first condition is that, under the demutualisation, a trust (the lost policy holders trust ) exists solely for one or both of the purposes that are described in subsection (3) in relation to persons ( beneficiaries of the lost policy holders trust ) covered by subsection (4). (3) The purposes are as follows: (a) holding demutualisation assets (see section 316 ‑ 110) that are * shares or rights to * acquire shares, or proceeds from disposal of those assets, on behalf of one or more beneficiaries of the lost policy holders trust and transferring those assets or proceeds to those beneficiaries; (b) holding on behalf of one or more beneficiaries of the lost policy holders trust, and paying to them, money payable to them for: (i) the variation or abrogation of rights attaching to or consisting of the beneficiaries’ interests affected by demutualisation (see paragraph 316 ‑ 55(1)(b)); or (ii) the conversion, cancellation, extinguishment or redemption of those interests. (4) This subsection covers: (a) a person who is or has been a * member of the friendly society or is or has been insured through the * friendly society or a health/life insurance subsidiary of the friendly society; and (b) a * legal personal representative, or beneficiary in the estate, of such a person who has died. Second condition (5) The second condition is that, under the demutualisation, the trustee of the lost policy holders trust is: (a) issued with demutualisation assets that are * shares, or rights to * acquire shares; or (b) paid money described in paragraph (3)(b) to hold and pay to beneficiaries of the lost policy holders trust.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010 | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29)

s 316-160 — Disregarding beneficiaries’ capital gains and losses, except some involving receipt of money

Disregard a * capital gain or * capital loss of a beneficiary of the lost policy holders trust from a * CGT event that happens to the beneficiary’s interest in the trust.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-165 — Taking account of some capital gains and losses involving receipt of money by beneficiaries

(1) This section applies if: (a) a * CGT event happens to an interest of a beneficiary of the lost policy holders trust in that trust; and (b) the * capital proceeds from the event include or consist of money received by the beneficiary. (2) Work out whether the beneficiary makes a * capital gain or * capital loss from the * CGT event, and the amount of the gain or loss, assuming that: (a) the * capital proceeds from the CGT event were the amount they would be if they did not include any * market value of property other than money; and (b) the * cost base and * reduced cost base for the interest were the amount worked out using the formula: Example: Assume that the beneficiary of the lost policy holders trust is paid $50 in money by the trustee to satisfy the beneficiary’s interest in the trust so that a CGT event happens, and that the valuation factor worked out under section 316 ‑ 65 is 0.9. The beneficiary makes a capital gain from the event of $5, worked out as follows: Note: Division 114 (Indexation of cost base) is not relevant, because this section provides exhaustively for working out the amount of the cost base. (3) The * capital gain or * capital loss is not to be disregarded, despite sections 316 ‑ 55 and 316 ‑ 160. Note: The capital gain is not a discount capital gain: see section 115 ‑ 55.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-170 — Roll ‑ over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust

(1) This section applies in relation to a * CGT event if: (a) the CGT event happens in relation to an asset that: (i) is a * share or a right to * acquire one or more shares; and (ii) is held by the trustee of the lost policy holders trust on behalf of a beneficiary of the lost policy holders trust; and (b) the CGT event happens because the beneficiary of the lost policy holders trust either: (i) is transferred the asset by the trustee; or (ii) becomes absolutely entitled to the asset. Consequence for trustee (2) Disregard a * capital gain or * capital loss the trustee makes from the * CGT event. Consequences for beneficiary (3) The * cost base and * reduced cost base of the asset in the hands of the trustee of the lost policy holders trust just before the * CGT event becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary of the lost policy holders trust. Note: Section 316 ‑ 105 affects the cost base of the asset in the hands of the trustee of the lost policy holders trust if the asset is covered by section 316 ‑ 110. (4) The beneficiary of the lost policy holders trust is taken to have * acquired the asset when the trustee acquired it.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-175 — Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust

(1) This section applies in relation to a * capital gain from a * CGT event if: (a) the CGT event happens in relation to a demutualisation asset that: (i) is a * share or a right to * acquire a share; and (ii) is held by the trustee of a lost policy holders trust; and (b) section 316 ‑ 170 does not apply to the CGT event. (2) If this section applies: (a) sections 115 ‑ 215 and 115 ‑ 220 do not apply in relation to the * capital gain; and (b) for the purposes of this Act, the trustee is taken to be * specifically entitled to all of the capital gain.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010 | Amended by No 62 of 2011, effective Sch 1 (items 1–3, 6–12, 14), Sch 2 (items 8–27, 45–51), Sch 3 (items 1–3, 9–19) and Sch 4 (items 33, 34): 29 June 2011 (s 2(1) items 2, 3, 5, 6) Sch 3 (items 4–8): 30 June 2011 (s 2(1) item 4)

s 316-180 — Subdivision 126 ‑ E does not apply

Subdivision 126 ‑ E does not apply in relation to the demutualisation. Note: Subdivision 126 ‑ E is about an entitlement to shares after demutualisation and scrip for scrip roll ‑ over.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-200 — Demutualisation assets not owned by deceased but passing to beneficiary in deceased estate

(1) This section sets out what happens if a * CGT asset: (a) is a demutualisation asset (see section 316 ‑ 110); and (b) forms part of the estate of an individual who is an entity described in subsection 316 ‑ 115(1) and has died; and (c) was not owned by the individual just before dying; and (d) * passes to a beneficiary in the individual’s estate because the asset is transferred to the beneficiary by the individual’s * legal personal representative. Note: Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying. Consequence for legal personal representative (2) Disregard a * capital gain or * capital loss the * legal personal representative makes because the asset * passes to the beneficiary. Consequence for beneficiary (3) The * cost base and * reduced cost base of the asset in the hands of the * legal personal representative just before the asset * passes to the beneficiary becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary. (4) The beneficiary is taken to have * acquired the asset when the * legal personal representative acquired it.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-205 — Interest in lost policy holders trust not owned by deceased but passing to beneficiary in deceased estate

(1) This section sets out what happens if a * CGT asset: (a) is an interest in a lost policy holders trust (see section 316 ‑ 155); and (b) forms part of the estate of an individual who is an entity described in subsection 316 ‑ 115(1) and has died; and (c) was not owned by the individual just before dying; and (d) * passes to a beneficiary in the individual’s estate because the asset is transferred to the beneficiary by the individual’s * legal personal representative. Note: Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying. Consequence for legal personal representative (2) Disregard a * capital gain or * capital loss the * legal personal representative makes because the asset * passes to the beneficiary.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-250 — What this Subdivision is about

In many cases, income from demutualisation is assessed through the CGT provisions rather than as ordinary income or other statutory income. Franking debits arise for the friendly society and its subsidiaries to ensure they do not enjoy a franking surplus. Franking debits and credits arise to negate credits and debits from things attributable to the time before demutualisation. Table of sections 316 ‑ 255 General taxation consequences of issue of demutualisation assets etc. 316 ‑ 260 Franking debits to stop the friendly society and its subsidiaries having franking surpluses 316 ‑ 265 Franking debits to negate franking credits from some distributions to friendly society and subsidiaries 316 ‑ 270 Franking debits to negate franking credits from post ‑ demutualisation payments of pre ‑ demutualisation tax 316 ‑ 275 Franking credits to negate franking debits from refunds of tax paid before demutualisation

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-255 — General taxation consequences of issue of demutualisation assets etc.

(1) An amount of * ordinary income or * statutory income (other than a * net capital gain) of an entity covered by subsection (2) is not assessable income and is not * exempt income if: (a) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a demutualisation asset (see section 316 ‑ 110) was issued to the entity; or (b) the amount is a payment made to the entity, under the demutualisation, in connection with: (i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation (see paragraph 316 ‑ 55(1)(b)); or (ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation; or (c) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a * share or a right to * acquire one or more shares was transferred to the entity by the trustee of a lost policy holders trust (see section 316 ‑ 155); or (d) the amount is a payment made to the entity from a lost policy holders trust in connection with: (i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation; or (ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation. (2) This subsection covers an entity that: (a) is or has been a * member of the * friendly society; or (b) is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; or (c) is issued with the demutualisation asset, or receives the payment, because of the death of a person covered by paragraph (a) or (b); or (d) is a beneficiary of a lost policy holders trust (see section 316 ‑ 155).

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-260 — Franking debits to stop the friendly society and its subsidiaries having franking surpluses

(1) A * franking debit arises in the * franking account of the * friendly society or a * wholly ‑ owned subsidiary of the society if the account is in * surplus immediately before the demutualisation resolution day identified under subsection 316 ‑ 70(4). (2) The amount of the * franking debit equals the * surplus. (3) The * franking debit arises at the start of that day.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-265 — Franking debits to negate franking credits from some distributions to friendly society and subsidiaries

(1) This section applies if a * franking credit arises in the * franking account of the * friendly society or a * wholly ‑ owned subsidiary of the society because a * distribution declared before the demutualisation resolution day identified under subsection 316 ‑ 70(4) is made to the society or subsidiary on or after that day. (2) A * franking debit arises in that account. (3) The amount of the * franking debit equals the amount of the * franking credit. (4) The * franking debit arises at the same time as the * franking credit arises.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-270 — Franking debits to negate franking credits from post ‑ demutualisation payments of pre ‑ demutualisation tax

(1) This section applies if a * franking credit arises in the * franking account of the * friendly society or a * wholly ‑ owned subsidiary of the society because, on or after the demutualisation resolution day identified under subsection 316 ‑ 70(4), the society or subsidiary * pays a PAYG instalment, or * pays income tax, that is wholly or partly attributable to a period before that day. (2) A * franking debit arises in that account. (3) The amount of the * franking debit is so much of the * franking credit as is attributable to the period before that day. (4) The * franking debit arises at the same time as the * franking credit arises.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 316-275 — Franking credits to negate franking debits from refunds of tax paid before demutualisation

(1) This section applies if a * franking debit arises in the * franking account of the * friendly society or a * wholly ‑ owned subsidiary of the society because, on or after the demutualisation resolution day identified under subsection 316 ‑ 70(4), the society or subsidiary * receives a refund of income tax that is wholly or partly attributable to a period before that day. (2) A * franking credit arises in that account. (3) The amount of the * franking credit is so much of the * franking debit as is attributable to the period before that day. (4) The * franking credit arises at the same time as the * franking debit arises.

Amendment history: Inserted by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 320-1 — What this Division is about

This Division provides for the taxation of life insurance companies in a broadly comparable way to other entities that derive similar kinds of income. Because of the nature of the business of life insurance companies, the Division contains special rules for working out their taxable income. Those rules: • include certain amounts in assessable income; • identify certain amounts of exempt income and non ‑ assessable non ‑ exempt income; • identify specific deductions. Life insurance companies can have one or both of these taxable incomes for any income year for the purposes of working out their income tax for that year: • a taxable income of the complying superannuation class, which consists of taxable income that relates to complying superannuation business, and is taxed at the rate of tax that applies to complying superannuation funds; • a taxable income of the ordinary class, which consists of taxable income that relates to other businesses and is taxed at the corporate tax rate. Life insurance companies can also have tax losses that correspond to those 2 classes. The Division provides that tax losses of a particular class can be deducted only from incomes in respect of that class. The Division ensures that the income tax worked out on the basis of these taxable incomes and tax losses is a single amount of income tax on one taxable income. The Division also contains rules for segregating the assets of life insurance companies into: • assets that relate to complying superannuation business; • assets that relate to immediate annuity and other exempt business. This Division also ensures that life insurance companies that are RSA providers are liable to pay tax on no ‑ TFN contributions income.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-5 — Object of Division

(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.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-10 — What this Subdivision is about

This Subdivision provides for certain amounts to be included in a life insurance company’s assessable income and for certain other amounts to be exempt income or non ‑ assessable non ‑ exempt income. Table of sections Operative provisions 320 ‑ 15 Assessable income—various amounts 320 ‑ 30 Assessable income—special provision for certain income years 320 ‑ 35 Exempt income 320 ‑ 37 Non ‑ assessable non ‑ exempt income 320 ‑ 45 Tax treatment of gains or losses from CGT events in relation to complying superannuation assets

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A)

s 320-15 — Assessable income—various amounts

(1) A * life insurance company’s assessable income includes: (a) the total amount of the * life insurance premiums paid to the company in the income year; and (b) amounts received or recovered under * contracts of reinsurance (except amounts that relate to a risk, or part of a risk, in relation to which subsection 148(1) of the Income Tax Assessment Act 1936 applies) to the extent to which they relate to the * risk components of claims paid under * life insurance policies; and (c) any amount received or recovered that is a refund, or in the nature of a refund, of the life insurance premium paid under a contract of reinsurance (except any amount that relates to a risk, or part of a risk, in relation to which subsection 148(1) of the Income Tax Assessment Act 1936 applies); and (ca) any reinsurance commission received or recovered by the company in respect of a contract of reinsurance (except any commission that relates to a risk, or part of a risk, in relation to which subsection 148(1) of the Income Tax Assessment Act 1936 applies); and (d) any amount received under a profit ‑ sharing arrangement contained in, or entered into in relation to, a contract of reinsurance; and (da) the * transfer values of assets transferred by the company from a * complying superannuation asset pool under subsection 320 ‑ 180(1) or 320 ‑ 195(3); and (db) the transfer values of assets transferred by the company to a complying superannuation asset pool under subsection 320 ‑ 180(3) or 320 ‑ 185(1); and (e) if an asset (other than money) is transferred from or to a complying superannuation asset pool under subsection 320 ‑ 180(1) or (3), to a complying superannuation asset pool under section 320 ‑ 185 or from a complying superannuation asset pool under subsection 320 ‑ 195(2) or (3)—the amount (if any) that is included in the company’s assessable income of the income year in which the asset was transferred because of section 320 ‑ 200; and (f) the transfer values of assets transferred by the company from the company’s * segregated exempt assets under subsection 320 ‑ 235(1) or 320 ‑ 250(2); and (g) if an asset (other than money) is transferred to the company’s segregated exempt assets under subsection 320 ‑ 235(3) or section 320 ‑ 240—the amount (if any) that is included in the company’s assessable income because of section 320 ‑ 255; and (h) subject to subsection (2), if the * value, at the end of the income year, of the company’s liabilities under the * net risk components of life insurance policies is less than the value, at the end of the previous income year, of those liabilities—an amount equal to the difference; and Note: Where the value at the end of the income year exceeds the value at the end of the previous income year, the excess can be deducted: see section 320 ‑ 85. (i) amounts specified in agreements under section 295 ‑ 260; and (j) * specified roll ‑ over amounts paid to the company; and (ja) amounts imposed by the company in respect of risk riders for * ordinary investment policies in an income year in which the company did not receive any life insurance premiums for those policies; and (k) fees and charges (not otherwise included in, or taken into account in working out, the company’s assessable income) imposed by the company in respect of life insurance policies; and (l) if the company is an * RSA provider—contributions made to * RSAs provided by the company that would be included in the company’s assessable income under Subdivision 295 ‑ C if that Subdivision applied to the company. (2) Paragraph (1)(h) does not cover any liabilities under: (a) a * life insurance policy that provides for * participating benefits or * discretionary benefits; or (b) an * exempt life insurance policy; or (c) a * funeral policy. (3) An amount included in assessable income under paragraph (1)(i) is included for the income year of the * life insurance company that includes the last day of the transferor’s income year to which the agreement referred to in section 295 ‑ 260 relates.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-30 — Assessable income—special provision for certain income years

(1) This section applies to a * life insurance company for each of the following income years (each a relevant income year ): (a) the income year in which 1 July 2000 occurs; (b) the 4 following income years. Note: The effect of this section is modified when the life insurance business of a life insurance company is transferred to another life insurance company: see section 320 ‑ 340. (2) If: (a) the * value of the company’s liabilities at the end of 30 June 2000 under its * continuous disability policies (being the value used by the company for the purposes of its * income tax return); exceeds (b) the value of the company’s liabilities at the end of 30 June 2000 under the * net risk components of its continuous disability policies as calculated under subsection 320 ‑ 85(4); the company’s assessable income for each relevant income year includes an amount equal to one ‑ fifth of the excess. (3) However, if a * life insurance company ceases in a relevant income year to carry on * life insurance business or to have any liabilities under the * net risk components of * continuous disability policies, subsection (2) does not apply for that income year or any future income years but the company’s assessable income for that income year includes so much of the excess referred to in subsection (2) as has not been included in the company’s assessable income for any previous relevant income years.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 23 of 2005, effective s. 4, Schedule 1 (items 2–8, 11, 13–19, 21–24, 26, 27, 29–32), Schedule 2 (items 1–11, 14), Schedule 3 (items 1–13, 75–102, 111(1)–(3)), Schedules 4–6, 8, 10 and Schedule 12 (items 2–6, 11(1)): Royal Assent Schedule 12 (item 1): 1 July 2000 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 320-35 — Exempt income

These amounts * derived by a * life insurance company are exempt from income tax: (a) amounts of * ordinary income and * statutory income accrued before 1 July 1988 that were derived from assets that have become * complying superannuation assets; (b) if the company is an * RSA provider—any amounts that are disregarded because of paragraph 320 ‑ 137(3)(d) or (e) in working out the company’s taxable income of the * complying superannuation class.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 57 of 2002, effective Sch 2: 1 July 2002 (s 2(1) item 3) Sch 4 (items 3, 4): 1 July 2000 (s 2(1) item 5) Sch 4 (items 5–8), Sch 7, Sch 9 (items 9, 11, 12, 15–20, 22–40, 45), Sch 11 (items 2–5), Sch 12 (items 16–18, 20, 25, 26): 3 July 2002 (s 2(1) items 6, 7, 9, 11, 13, 15, 16, 18, 28, 30, 33) Sch 9 (items 10, 13, 14, 21) and Sch 12 (items 23, 24): 1 July 1997 (s 2(1) items 10, 12, 14, 32) Sch 12 (item 19): 30 June 1998 (s 2(1) item 29) Sch 12 (items 21, 22): 22 June 1998 (s 2(1) item 31) Sch 12 (items 27, 28): 16 Apr 1998 (s 2(1) item 34) Sch 12 (item 29): 19 Sept 1997 (s 2(1) item 35) | Amended by No 12 of 2003, effective Schedule 1: 29 Aug 2001 Remainder: Royal Assent | Repealed and substituted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-37 — Non ‑ assessable non ‑ exempt income

(1) These amounts * derived by a * life insurance company are not assessable income and are not * exempt income: (a) amounts of ordinary income and statutory income derived from * segregated exempt assets, being income that relates to the period during which the assets were segregated exempt assets; (b) amounts of ordinary income and statutory income derived from the * disposal of units in a * pooled superannuation trust; (c) if an * Australian/overseas fund or an * overseas fund established by the company derived foreign establishment amounts—the foreign resident proportion of the foreign establishment amounts; (d) if the company is a * friendly society: (i) amounts derived before 1 July 2001 that are exempt from income tax under section 50 ‑ 1; and (ii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to * income bonds, * funeral policies or * sickness policies; and (iii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to * scholarship plans and would have been exempt from income tax under section 50 ‑ 1 if they had been received before 1 July 2001; and (iv) amounts derived on or after 1 January 2003 that are attributable to income bonds, funeral policies or * sickness policies, that were issued before 1 January 2003; and (v) amounts derived on or after 1 January 2003 that are attributable to scholarship plans issued before 1 January 2003 and that would have been exempt from income tax if they had been received before 1 July 2001. Note: The effect of this section is modified when the life insurance business of a life insurance company is transferred to another life insurance company: see section 320 ‑ 325. (1A) For the purposes of paragraph (1)(c), foreign establishment amounts for the * life insurance company means the total amount of assessable income that was * derived in the income year: (a) in the course of the carrying on by the company of a business in a foreign country at or through a * permanent establishment of the company in that country; and (b) from sources in that or any other foreign country; and (c) from assets that: (i) are attributable to the permanent establishment; and (ii) are held to meet the liabilities under the * life insurance policies issued by the company at or through the permanent establishment. (2) For the purposes of paragraph (1)(c), the foreign resident proportion of the * foreign establishment amounts is the amount worked out using the formula: where: all foreign establishment policy liabilities means the average value for the income year (as calculated by an * actuary) of the policy liabilities (as defined in the * Valuation Standard) for all * life insurance policies that: (a) were included in the class of * life insurance business to which the company’s * Australian/overseas fund or * overseas fund relates; and (b) were issued by the company at or through the * permanent establishment to which the foreign establishment amounts relate. foreign resident foreign establishment policy liabilities means the average value for the income year (as calculated by an * actuary) of the policy liabilities (as defined in the * Valuation Standard) for all * life insurance policies that: (a) are * foreign resident life insurance policies; and (b) were issued by the company at or through the * permanent establishment to which the foreign establishment amounts relate.

Amendment history: Inserted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 23 of 2005, effective s. 4, Schedule 1 (items 2–8, 11, 13–19, 21–24, 26, 27, 29–32), Schedule 2 (items 1–11, 14), Schedule 3 (items 1–13, 75–102, 111(1)–(3)), Schedules 4–6, 8, 10 and Schedule 12 (items 2–6, 11(1)): Royal Assent Schedule 12 (item 1): 1 July 2000 | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 320-45 — Tax treatment of gains or losses from CGT events in relation to complying superannuation assets

(1) If a * CGT event happens in respect of a * CGT asset that is a * complying superannuation asset of a * life insurance company, section 295 ‑ 85 and 295 ‑ 90 applies for the purpose of working out the amount of any * capital gain or * capital loss that arises from the event. Note: See Subdivision 295 ‑ B of the Income Tax (Transitional Provisions) Act 1997 for rules about cost base for assets owned by superannuation entities at the end of 30 June 1988. (2) Subsection (1) has effect despite anything in Division 230.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 15 of 2009, effective Sch 1 (items 1–30, 52–97, 102–105): 26 Mar 2009 (s 2(1) item 2) Sch 1 (items 106–112, 114): 17 Dec 2003 (s 2(1) item 3) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-50 — What this Subdivision is about

This Subdivision specifies particular deductions that are available to a life insurance company, specifies particular amounts that a life insurance company cannot deduct and contains provisions relating to a life insurance company’s capital losses. Table of sections Operative provisions 320 ‑ 55 Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from complying superannuation assets 320 ‑ 60 Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from segregated exempt assets 320 ‑ 65 Deduction for life insurance premiums in respect of life insurance policies that provide for participating or discretionary benefits 320 ‑ 70 No deduction for life insurance premiums in respect of certain life insurance policies payable only on death or disability 320 ‑ 75 Deduction for ordinary investment policies 320 ‑ 80 Deduction for certain claims paid under life insurance policies 320 ‑ 85 Deduction for increase in value of liabilities under net risk components of life insurance policies 320 ‑ 87 Deduction for assets transferred from or to complying superannuation asset pool 320 ‑ 100 Deduction for life insurance premiums paid under certain contracts of reinsurance 320 ‑ 105 Deduction for assets transferred to segregated exempt assets 320 ‑ 110 Deduction for interest credited to income bonds 320 ‑ 111 Deduction for funeral policy payout 320 ‑ 112 Deduction for scholarship plan payout 320 ‑ 115 No deduction for amounts credited to RSAs 320 ‑ 120 Capital losses from assets other than complying superannuation assets or segregated exempt assets 320 ‑ 125 Capital losses from complying superannuation assets

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11))

s 320-55 — Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from complying superannuation assets

(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.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-60 — Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from segregated exempt assets

A * life insurance company can deduct the amounts of * life insurance premiums transferred in the income year to its * segregated exempt assets under subsection 320 ‑ 240(3).

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11))

s 320-65 — Deduction for life insurance premiums in respect of life insurance policies that provide for participating or discretionary benefits

A * life insurance company can deduct the amounts of * net premiums received in respect of * life insurance policies (other than * complying superannuation life insurance policies or * exempt life insurance policies) that provide for * participating benefits or * discretionary benefits.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-70 — No deduction for life insurance premiums in respect of certain life insurance policies payable only on death or disability

(1) A * life insurance company cannot deduct any part of the amounts of * life insurance premiums received in respect of * life insurance policies under which amounts are to be paid only on the death or disability of a person. (2) This section does not apply to: (a) * life insurance policies that provide for * participating benefits or * discretionary benefits; or (b) funeral policies.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23)

s 320-75 — Deduction for ordinary investment policies

(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.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 57 of 2002, effective Sch 2: 1 July 2002 (s 2(1) item 3) Sch 4 (items 3, 4): 1 July 2000 (s 2(1) item 5) Sch 4 (items 5–8), Sch 7, Sch 9 (items 9, 11, 12, 15–20, 22–40, 45), Sch 11 (items 2–5), Sch 12 (items 16–18, 20, 25, 26): 3 July 2002 (s 2(1) items 6, 7, 9, 11, 13, 15, 16, 18, 28, 30, 33) Sch 9 (items 10, 13, 14, 21) and Sch 12 (items 23, 24): 1 July 1997 (s 2(1) items 10, 12, 14, 32) Sch 12 (item 19): 30 June 1998 (s 2(1) item 29) Sch 12 (items 21, 22): 22 June 1998 (s 2(1) item 31) Sch 12 (items 27, 28): 16 Apr 1998 (s 2(1) item 34) Sch 12 (item 29): 19 Sept 1997 (s 2(1) item 35) | Repealed and substituted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23)

s 320-80 — Deduction for certain claims paid under life insurance policies

(1) A * life insurance company can deduct the amounts paid in respect of the * risk components of claims paid under * life insurance policies during the income year. (2) The risk component of a claim paid under a * life insurance policy is: (a) if: (i) the policy does not provide for * participating benefits or * discretionary benefits; and (ii) the policy is neither an * exempt life insurance policy nor a * funeral policy; and (iii) an amount is payable under the policy only on the death or disability of the insured person; the amount paid under the policy as a result of the occurrence of that event; or (b) if the policy provides for participating benefits or discretionary benefits or is an exempt life insurance policy or a funeral policy—nil; or (c) otherwise—the amount paid under the policy as a result of the death or disability of the insured person less the * current termination value of the policy (calculated by an * actuary) immediately before the death, or the occurrence of the disability, of the person. (3) Except as provided by subsection (1), a * life insurance company cannot deduct amounts paid in respect of claims under * life insurance policies.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-85 — Deduction for increase in value of liabilities under net risk components of life insurance policies

(1) A * life insurance company can deduct the amount (if any) by which the * value, at the end of the income year, of its liabilities under the * net risk components of * life insurance policies exceeds the value, at the end of the previous income year, of those liabilities. Note 1: Where the value at the end of the income year is less than the value at the end of the previous income year, the difference is included in assessable income: see paragraph 320 ‑ 15(1)(h). Note 2: Section 320 ‑ 85 of the Income Tax (Transitional Provisions) Act 1997 makes special provision in respect of the calculation of the value of a life insurance company’s liabilities under the net risk components of life insurance policies at the end of the income year immediately preceding the income year in which 1 July 2000 occurs. (2) Subsection (1) does not cover any liabilities under: (a) a * life insurance policy that provides for * participating benefits or * discretionary benefits; or (b) an * exempt life insurance policy; or (c) a * funeral policy. (3) If a * life insurance policy is a * disability policy (other than a * continuous disability policy), the value at a particular time of the liabilities of the * life insurance company under the * net risk component of the policy is the * current termination value of the component at that time (calculated by an * actuary). (4) In the case of * life insurance policies other than policies to which subsection (3) applies, the value at a particular time of the liabilities of the * life insurance company under the * net risk components of the policies is the amount calculated by an * actuary to be: (a) the sum of the policy liabilities (as defined in the * Valuation Standard) in respect of the net risk components of the policies at that time; less (b) the sum of any cumulative losses (as defined in the Valuation Standard) for the net risk components of the policies at that time.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 143 of 2007, effective Schedule 1 (items 1, 4, 128–194, 222, 223, 225, 226), Schedule 2, Schedule 5 (items 1–16, 48(1)–(3)), Schedule 6 and Schedule 7 (items 18–68): Royal Assent Schedule 5 (items 31–46): 15 Mar 2007 (s 2(1) item 6) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-87 — Deduction for assets transferred from or to complying superannuation asset pool

(1) A * life insurance company can deduct the * transfer values of assets that are transferred by the company in the income year from a * complying superannuation asset pool under subsection 320 ‑ 180(1) or 320 ‑ 195(3). (2) A * life insurance company can deduct the * transfer values of assets that are transferred by the company in the income year to a * complying superannuation asset pool under subsection 320 ‑ 180(3) or 320 ‑ 185(1). (3) If an asset (other than money) is transferred by a * life insurance company: (a) from a * complying superannuation asset pool under subsection 320 ‑ 180(1) or 320 ‑ 195(2) or (3); or (b) to a complying superannuation asset pool under subsection 320 ‑ 180(3) or section 320 ‑ 185; the company can deduct the amount (if any) that it can deduct because of section 320 ‑ 200.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed and substituted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-100 — Deduction for life insurance premiums paid under certain contracts of reinsurance

A * life insurance company can deduct amounts that: (a) were paid by the company in the income year as * life insurance premiums under * contracts of reinsurance; and (b) do not relate to a risk, or part of a risk, in relation to which subsection 148(1) of the Income Tax Assessment Act 1936 applies.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed and substituted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23)

s 320-105 — Deduction for assets transferred to segregated exempt assets

(1) A * life insurance company can deduct the * transfer values of assets transferred in the income year to the company’s * segregated exempt assets under subsection 320 ‑ 235(3) or 320 ‑ 240(1). (2) If an asset (other than money) is transferred to a * life insurance company’s * segregated exempt assets under subsection 320 ‑ 235(3) or section 320 ‑ 240, the company can deduct the amount (if any) that it can deduct because of section 320 ‑ 255.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23)

s 320-110 — Deduction for interest credited to income bonds

(1) A * life insurance company that is a * friendly society can deduct interest credited in the income year to the holders of * income bonds issued after 31 December 2002 where the interest accrued on or after 1 January 2003. (2) This section has effect despite subsection 320 ‑ 80(3).

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 57 of 2002, effective Sch 2: 1 July 2002 (s 2(1) item 3) Sch 4 (items 3, 4): 1 July 2000 (s 2(1) item 5) Sch 4 (items 5–8), Sch 7, Sch 9 (items 9, 11, 12, 15–20, 22–40, 45), Sch 11 (items 2–5), Sch 12 (items 16–18, 20, 25, 26): 3 July 2002 (s 2(1) items 6, 7, 9, 11, 13, 15, 16, 18, 28, 30, 33) Sch 9 (items 10, 13, 14, 21) and Sch 12 (items 23, 24): 1 July 1997 (s 2(1) items 10, 12, 14, 32) Sch 12 (item 19): 30 June 1998 (s 2(1) item 29) Sch 12 (items 21, 22): 22 June 1998 (s 2(1) item 31) Sch 12 (items 27, 28): 16 Apr 1998 (s 2(1) item 34) Sch 12 (item 29): 19 Sept 1997 (s 2(1) item 35) | Amended by No 12 of 2003, effective Schedule 1: 29 Aug 2001 Remainder: Royal Assent

s 320-111 — Deduction for funeral policy payout

(1) A * life insurance company that is a * friendly society can deduct the amount of a benefit provided in the income year by the company under a * funeral policy issued after 31 December 2002, reduced by so much of the sum of the amounts deducted or deductible by the company under section 320 ‑ 75 for any income year as is reasonably related to the benefit. (2) This section has effect despite subsection 320 ‑ 80(3).

Amendment history: Inserted by No 12 of 2003, effective Schedule 1: 29 Aug 2001 Remainder: Royal Assent

s 320-112 — Deduction for scholarship plan payout

(1) A * life insurance company that is a * friendly society can deduct the amount of a benefit it provides in the income year and on or after 1 January 2003: (a) under a * scholarship plan covered by subsection (2) or (3); and (b) to, or on behalf of, a person nominated in the plan as a beneficiary whose education is to be helped by the benefit; reduced by so much of the sum of the amounts deducted or deductible by the company under section 320 ‑ 75 for any income year as is reasonably related to the benefit. (2) This subsection covers a * scholarship plan issued by the * life insurance company after 31 December 2002. (3) This subsection covers a * scholarship plan if: (a) the plan was issued by the * life insurance company before 1 January 2003; and (b) no amount received by the company on or after 1 January 2003 and attributable to the plan is * non ‑ assessable non ‑ exempt income of the company under paragraph 320 ‑ 37(1)(d). (4) This section has effect despite subsection 320 ‑ 80(3).

Amendment history: Inserted by No 12 of 2003, effective Schedule 1: 29 Aug 2001 Remainder: Royal Assent | Amended by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A)

s 320-115 — No deduction for amounts credited to RSAs

A * life insurance company that is an * RSA provider cannot deduct amounts credited to * RSAs.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11))

s 320-120 — Capital losses from assets other than complying superannuation assets or segregated exempt assets

(1) This section applies to assets ( ordinary assets ) of a * life insurance company other than: (a) * complying superannuation assets; or (b) * segregated exempt assets. (2) In working out a * life insurance company’s * net capital gain or * net capital loss for the income year, * capital losses from ordinary assets can be used only to reduce * capital gains from ordinary assets. (3) If some or all of a * capital loss from an ordinary asset cannot be applied in an income year, the unapplied amount can be applied in the next income year in which the company’s * capital gains from ordinary assets exceed the company’s capital losses (if any) from ordinary assets. (4) If the company has 2 or more unapplied * net capital losses from ordinary assets, the company must apply them in the order in which they were made. Note: This section affects the amount of assessable income that is to be taken into account in working out a taxable income or tax loss of the ordinary class: see sections 320 ‑ 139 and 320 ‑ 143.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-125 — Capital losses from complying superannuation assets

(1) In working out a * life insurance company’s * net capital gain or * net capital loss for the income year, * capital losses from * complying superannuation assets can be used only to reduce * capital gains from complying superannuation assets. (2) If some or all of a * capital loss from a * complying superannuation asset cannot be applied in an income year, the unapplied amount can be applied in the next income year in which the company’s * capital gains from * complying superannuation assets exceed the company’s capital losses (if any) from complying superannuation assets. (3) If the company has 2 or more unapplied * net capital losses from * complying superannuation assets, the company must apply them in the order in which they were made. Note: This section affects the amount of assessable income that is to be taken into account in working out a taxable income or tax loss of the complying superannuation class: see sections 320 ‑ 137 and 320 ‑ 141.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-130 — What this Subdivision is about

This Subdivision explains how a life insurance company’s income tax is worked out. For that purpose, this Subdivision enables a life insurance company to have taxable incomes and tax losses of the following classes: • the complying superannuation class; • the ordinary class.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed and substituted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-131 — Overview of Subdivision

Working out the income tax (1) In any income year, a life insurance company can have: (a) a taxable income of the complying superannuation class and/or a taxable income of the ordinary class; or (b) a tax loss of the complying superannuation class and/or a tax loss of the ordinary class; or (c) a taxable income of one class and a tax loss of the other class. Note: The taxable incomes mentioned in paragraph (a) are taxed at different rates: see section 23A of the Income Tax Rates Act 1986 . (2) Taxable incomes and tax losses of both classes are taken into account in working out the amount of income tax that the company has to pay for the income year (see section 320 ‑ 134). That amount is then taken to be the income tax on the company’s taxable income for that income year. Working out taxable income and tax loss of each class (3) In general, the rules in this Act about working out a company’s taxable income or tax loss, or deducting a company’s tax loss, apply to a life insurance company in relation to: (a) working out a taxable income or tax loss of a particular class; or (b) deducting a tax loss of a particular class. (4) However, that general rule is subject to the following: (a) sections 320 ‑ 137 to 320 ‑ 143, which allocate amounts of incomes and deductions for the purposes of working out a taxable income or tax loss of a particular class; (b) subsections 320 ‑ 141(2) and 320 ‑ 143(2), which provide that tax losses of a particular class can be deducted only from incomes in respect of that class; (c) section 320 ‑ 149, which sets out the provisions in this Act that have effect only in relation to a taxable income or tax loss of the ordinary class. Table of sections General rules 320 ‑ 133 Object of Subdivision 320 ‑ 134 Income tax of a life insurance company 320 ‑ 135 Taxable income and tax loss of each of the 2 classes Taxable income and tax loss of life insurance companies 320 ‑ 137 Taxable income—complying superannuation class 320 ‑ 139 Taxable income—ordinary class 320 ‑ 141 Tax loss—complying superannuation class 320 ‑ 143 Tax loss—ordinary class 320 ‑ 149 Provisions that apply only in relation to the ordinary class

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-133 — Object of Subdivision

(1) The object of this Subdivision is to ensure that: (a) for the purposes of working out the amount of a * life insurance company’s income tax for an income year: (i) the company’s taxable income or * tax loss of one * class is worked out separately from its taxable income or tax loss of the other class; and (ii) the company’s tax losses of a particular class can be deducted only from its incomes in respect of that class; and (b) for the purposes of this Act, that amount of income tax is treated as the company’s income tax on its taxable income for that income year. (2) In subsection (1), a class means the * complying superannuation class or the * ordinary class.

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-134 — Income tax of a life insurance company

Working out the income tax (1) Work out a * life insurance company’s income tax for an income year under section 4 ‑ 10 as follows: (a) apply steps 1 and 2 of the method statement in subsection 4 ‑ 10(3) to work out separately the amount that would be the company’s basic income tax liability for its taxable income of each * class for that year; (b) treat the sum of these amounts as the company’s basic income tax liability for that year and apply step 4 of the method statement to subtract its * tax offsets from that sum. (2) For the purposes of this Act: (a) the income tax worked out in accordance with subsection (1) is taken to be the company’s income tax on its taxable income for the income year; and (b) except as provided by subsection (1) of this section and sections 320 ‑ 135 to 320 ‑ 149, the company’s taxable income for that year is taken to be equal to the sum of the company’s taxable incomes of the 2 * classes for that year. Note: This means that there is only one assessment in respect of the company’s taxable income for the income year and that the income tax constitutes only one debt to the Commonwealth. Working out the income tax on certain assumptions (3) Subsection (1) also has effect in relation to working out an amount that would be the company’s income tax if certain assumptions were made. It has that effect in the same way as it has effect in relation to working out the company’s income tax under section 4 ‑ 10 (except in regard to those assumptions). Note: This means, for example, subsection (1) also has effect in relation to working out the amount of a life insurance company’s income tax on the basis of the tax offset priority rules in Division 63.

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 320-135 — Taxable income and tax loss of each of the 2 classes

(1) Subject to the other provisions in this Subdivision: (a) this Act has effect for a * life insurance company in relation to working out a taxable income of a particular * class in the same way as it has effect in relation to working out a taxable income of any other company; and (b) this Act has effect for a life insurance company in relation to working out or deducting a * tax loss of a particular class in the same way as it has effect in relation to working out or deducting a tax loss of any other company. (2) Sections 320 ‑ 137 to 320 ‑ 143 have effect in addition to other provisions in this Act that relate to working out a taxable income or * tax loss, or deducting a tax loss (as appropriate). (3) Nothing in this Subdivision prevents a * life insurance company from: (a) having taxable incomes, or * tax losses, of both * classes for the same income year; or (b) having a taxable income of one class and a tax loss of the other class for the same income year. Note: In certain circumstances, a life insurance company can have a taxable income and a tax loss of the same class in an income year (see Subdivision 165 ‑ B as it has effect under this Subdivision).

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed and substituted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23)

s 320-137 — Taxable income—complying superannuation class

(1) A * life insurance company’s taxable income of the complying superannuation class is a taxable income worked out under this Act on the basis of only: (a) assessable income of the company that is covered by subsection (2); and (b) deductions of the company that are covered by subsection (4); and (c) * tax losses of the company that are of the * complying superannuation class. Note: For the usual way of working out a taxable income: see subsection 4 ‑ 15(1). For other ways of working out a taxable income: see subsection 4 ‑ 15(2). Relevant assessable income (2) This subsection covers the following assessable income of a * life insurance company: (a) assessable income * derived by the company from the investment of its * complying superannuation assets in relation to the period during which those assets were complying superannuation assets; (b) so much of the amount that is included in the company’s assessable income because of paragraph 320 ‑ 15(1)(a) as is equal to the total * transfer value of assets transferred in the income year by the company to a * complying superannuation asset pool under subsection 320 ‑ 185(3); (c) if an asset (other than money) is transferred by the company from a complying superannuation asset pool under subsection 320 ‑ 180(1) or 320 ‑ 195(2) or (3)—amounts that are included in the company’s assessable income because of section 320 ‑ 200; (d) amounts that are included in the company’s assessable income because of paragraph 320 ‑ 15(1)(db), (i) or (j); (e) amounts that are included in the company’s assessable income under subsection 115 ‑ 280(4); (f) subject to subsection (3), so much of the company’s assessable income for the income year as is: (i) the total amount credited during that year to the * RSAs provided by the company; less (ii) the total amount debited during that year from the RSAs. Amounts disregarded for RSAs (3) In working out the amount mentioned in paragraph (2)(f), disregard the following amounts: (a) contributions credited to the * RSAs that would not be included in the company’s assessable income under Subdivision 295 ‑ C if that Subdivision applied to the company; (b) amounts debited from the RSAs that are benefits paid to, or in respect of, the holders of the RSAs; (c) income tax debited from the RSAs; (d) if an * annuity covered by subsection (3A) was paid from an RSA in respect of the whole of the income year, or the whole of the part of the income year in which the RSA existed, the total amount credited to the RSA during the income year; (e) if an annuity covered by subsection (3A) was paid from an RSA in respect of a part, but not the whole, of the portion of the income year in which the RSA existed, so much of the total amount credited to the RSA during the income year as is equal to the amount worked out using the following formula: (3A) An * annuity is covered by this subsection if it is a * superannuation income stream that is in the * retirement phase. Relevant deductions (4) This subsection covers the following deductions of a * life insurance company: (a) amounts that the company can deduct under section 320 ‑ 55; (b) amounts that the company can deduct (other than any * tax losses) in respect of the investment of the company’s * complying superannuation assets in relation to the period during which those assets were complying superannuation assets; (c) amounts that the company can deduct under section 320 ‑ 87 because of subsection (1) or paragraph (3)(a) of that section; (d) amounts that the company can deduct under subsection 115 ‑ 280(1).

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 62 of 2011, effective Sch 1 (items 1–3, 6–12, 14), Sch 2 (items 8–27, 45–51), Sch 3 (items 1–3, 9–19) and Sch 4 (items 33, 34): 29 June 2011 (s 2(1) items 2, 3, 5, 6) Sch 3 (items 4–8): 30 June 2011 (s 2(1) item 4) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015 | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 320-139 — Taxable income—ordinary class

A * life insurance company’s taxable income of the ordinary class is a taxable income worked out under this Act on the basis of only: (a) assessable income of the company that is not covered by subsection 320 ‑ 137(2); and (b) amounts (other than * tax losses) that the company can deduct and are not covered by subsection 320 ‑ 137(4); and (c) tax losses of the company that are of the * ordinary class. Note: For the usual way of working out a taxable income: see subsection 4 ‑ 15(1). For other ways of working out a taxable income: see subsection 4 ‑ 15(2).

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23)

s 320-141 — Tax loss—complying superannuation class

Working out a tax loss of the complying superannuation class (1) A * life insurance company’s * tax loss of the complying superannuation class is a tax loss worked out under this Act on the basis of only: (a) assessable income of the company that is covered by subsection 320 ‑ 137(2); and (b) deductions of the company that are covered by subsection 320 ‑ 137(4); and (c) * net exempt income of the company that is attributable to * exempt income * derived: (i) from the company’s * complying superannuation assets; and (ii) in relation to the period during which those assets were complying superannuation assets. Note: For the usual way of working out a tax loss: see section 36 ‑ 10. For other ways of working out a tax loss: see section 36 ‑ 25. Deducting a tax loss of the complying superannuation class (2) A * life insurance company’s * tax loss of the complying superannuation class can be deducted under this Act only from: (a) * net exempt income of the company that is attributable to * exempt income * derived: (i) from the company’s * complying superannuation assets; and (ii) in relation to the period during which those assets were complying superannuation assets; and (b) assessable income of the company that is covered by subsection 320 ‑ 137(2), reduced by deductions of the company that are covered by subsection 320 ‑ 137(4). Note: For the usual way of deducting a tax loss: see section 36 ‑ 17. For other ways of deducting a tax loss: see section 36 ‑ 25.

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 41 of 2011, effective Schedule 1 (items 1–3): 1 Jan 2011 Schedule 1 (items 4–6) and Schedule 5 (items 25–29, 33, 36–50, 74–78, 80–145, 148–167, 173–175, 383–396, 400, 414–418): Royal Assent Schedule 5 (items 9, 18–20): 28 June 2011 Schedule 5 (items 51–54): 1 July 2011 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-143 — Tax loss—ordinary class

Working out a tax loss of the ordinary class (1) A * life insurance company’s * tax loss of the ordinary class is a tax loss worked out under this Act on the basis of only: (a) assessable income of the company that is not covered by subsection 320 ‑ 137(2); and (b) amounts (other than tax losses) that the company can deduct and are not covered by subsection 320 ‑ 137(4); and (c) * net exempt income of the company that is not attributable to * exempt income * derived: (i) from the company’s * complying superannuation assets; and (ii) in relation to the period during which those assets were complying superannuation assets. Note: For the usual way of working out a tax loss: see section 36 ‑ 10. For other ways of working out a tax loss: see section 36 ‑ 25. Deducting a tax loss of the ordinary class (2) A * life insurance company’s * tax loss of the ordinary class can be deducted under this Act only from: (a) * net exempt income of the company that is not attributable to * exempt income * derived: (i) from the company’s * complying superannuation assets; and (ii) in relation to the period during which those assets were complying superannuation assets; and (b) assessable income of the company that is not covered by subsection 320 ‑ 137(2), reduced by amounts (other than tax losses) that the company can deduct and are not covered by subsection 320 ‑ 137(4). Note: For the usual way of deducting a tax loss: see section 36 ‑ 17. For other ways of deducting a tax loss: see section 36 ‑ 25.

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-149 — Provisions that apply only in relation to the ordinary class

(1) The provisions covered by subsection (2): (a) have effect as provided by section 320 ‑ 135 in relation to a * life insurance company’s taxable income, or * tax loss, of the * ordinary class; but (b) have no effect in relation to the company’s taxable income, or tax loss, of the * complying superannuation class. (2) This subsection covers these provisions: (a) section 36 ‑ 55; (aa) Division 160 (Corporate loss carry back tax offset for 2020 ‑ 21, 2021 ‑ 22 or 2022 ‑ 23 for businesses with turnover under $5 billion); (b) Division 165 (except Subdivision 165 ‑ CD). Example 1: A life insurance company that has an amount of excess franking offsets will need to recalculate its tax loss of the ordinary class under section 36 ‑ 55. But its tax loss of the complying superannuation class is unaffected by that section. Example 2: A life insurance company that fails to meet the relevant tests of Division 165 will need to recalculate the ordinary class of its taxable income and tax loss under Subdivision 165 ‑ B. But the complying superannuation class of its taxable income and tax loss are unaffected by that Subdivision.

Amendment history: Inserted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 96 of 2014, effective Sch 1 (items 14–45, 122–124), Sch 2 (items 1, 14–40, 42, 43) and Sch 3–5: 30 Sept 2014 (s 2(1) item 2) Sch 8 (items 15–22, 26) and Sch 9 (items 21, 22, 24): 31 Dec 2016 (s 2(1) items 7, 9) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015 | Amended by No 92 of 2020, effective Sch 1 (items 18–21, 24): 15 Oct 2020 (s 2(1) item 4) Sch 1 (items 25–27): 1 July 2022 (s 2(1) item 5) Sch 2 (items 1–3, 16–35), Sch 3 (items 25–36, 40), Sch 4 (items 1–11, 14), Sch 5 (items 11–38, 56) and Sch 7 (items 5–8, 12–25): 1 Jan 2021 (s 2(1) item 7) | Amended by No 8 of 2022, effective sch 5 (items 1-4, 8-14): 1 July 2022 (s 2(1) item 4) sch 5 (items 15-19): repealed before commencing (s 2(1) item 5) sch 6 (items 1-22, 24), sch 7, sch 8 (items 33, 34), sch 10: 1 Apr 2022 (s 2(1) items 6-8, 10, 14)

s 320-150 — What this Subdivision is about

This Subdivision makes Subdivisions 295 ‑ I and 295 ‑ J apply to life insurance companies that are RSA providers. The consequence is that those life insurance companies are liable to pay tax on no ‑ TFN contributions income under Subdivision 295 ‑ I. They may also be entitled to a tax offset under Subdivision 295 ‑ J. Table of sections Operative provisions 320 ‑ 155 Subdivisions 295 ‑ I and 295 ‑ J apply to companies that are RSA providers

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Inserted by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 320-155 — Subdivisions 295 ‑ I and 295 ‑ J apply to companies that are RSA providers

(1) Despite subsection 295 ‑ 5(4), Subdivisions 295 ‑ I and 295 ‑ J apply to a * life insurance company that is an * RSA provider. (2) For the purposes of the application of those Subdivisions to a * life insurance company, a contribution included in the assessable income of the company under paragraph 320 ‑ 15(1)(l) is taken to have been included under Subdivision 295 ‑ C.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Inserted by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 320-165 — What this Subdivision is about

This Subdivision explains how a life insurance company can segregate assets (to be known as a complying superannuation asset pool ) to be used for the sole purpose of discharging its complying superannuation liabilities. Table of sections Operative provisions 320 ‑ 170 Establishment of complying superannuation asset pool 320 ‑ 175 Valuations of complying superannuation assets and complying superannuation liabilities for each valuation time 320 ‑ 180 Consequences of a valuation under section 320 ‑ 175 320 ‑ 185 Transfer of assets to complying superannuation asset pool otherwise than as a result of a valuation under section 320 ‑ 175 320 ‑ 190 Complying superannuation liabilities 320 ‑ 195 Transfer of assets and payment of amounts from a complying superannuation asset pool otherwise than as a result of a valuation under section 320 ‑ 175 320 ‑ 200 Consequences of transfer of assets to or from complying superannuation asset pool

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed and substituted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-170 — Establishment of complying superannuation asset pool

(1) A * life insurance company may, on or after 1 July 2000, segregate in accordance with subsections (2) and (3) any of its assets for the sole purpose of discharging its * complying superannuation liabilities out of those assets. (1A) Except as provided by section 320 ‑ 170 of the Income Tax (Transitional Provisions) Act 1997 , an asset is taken not to be included in the * complying superannuation assets unless the whole of the asset is included among those assets. (2) The assets segregated must, at the time of the segregation, be a representative sample of all the company’s assets that support its * complying superannuation liabilities immediately before the segregation. (3) The assets segregated must have, as at the time of the segregation, a total * transfer value that does not exceed the sum of: (a) the company’s * complying superannuation liabilities as at that time; and (b) any reasonable provision made by the company at that time in its accounts for liability for income tax in respect of the assets segregated. (4) A * life insurance company that segregates assets as mentioned in subsections (1) to (3) at a time after 1 July 2000 but before 1 October 2000 is taken to have segregated those assets in accordance with those subsections on 1 July 2000. (5) If a segregation of assets is made in accordance with the above subsections, the company must use the segregated assets, and any other assets afterwards included among the segregated assets, only for the purpose of discharging its * complying superannuation liabilities. (6) The assets from time to time segregated are together to be known as the complying superannuation asset pool and each asset from time to time included among those assets is to be known as a complying superannuation asset . (7) In this Subdivision: (a) a reference to the transfer of an asset to, or from, the * complying superannuation asset pool: (i) is a reference to the inclusion of the asset among the segregated assets, or the exclusion of an asset from the segregated assets, as the case may be; and (ii) includes a reference to the transfer of money to, or from, the complying superannuation asset pool, as the case may be; and (b) if an asset transferred to or from the complying superannuation asset pool is money, a reference to the * transfer value of the asset transferred is a reference to the amount of the money.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 320-175 — Valuations of complying superannuation assets and complying superannuation liabilities for each valuation time

(1) A * life insurance company that has established a * complying superannuation asset pool must cause the following amounts to be calculated within the period of 60 days starting immediately after each * valuation time: (a) the total * transfer value of the company’s * complying superannuation assets as at the valuation time; (b) the company’s * complying superannuation liabilities as at the valuation time. Note: The time when a life insurance company joins or leaves a consolidated group is also a valuation time: see section 713 ‑ 525. (2) These are the valuation times : (a) the end of the income year in which the * complying superannuation asset pool was established; (b) the end of each later income year. Note 1: The time when a life insurance company joins or leaves a consolidated group is also a valuation time: see sections 713 ‑ 525 and 713 ‑ 585. Note 2: A life insurance company that fails to comply with this section is liable to an administrative penalty: see section 288 ‑ 70 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 16 of 2003, effective s 4: 11 Apr 2003 (s 2(1) item 1) Sch 1 (items 1–6, 9–26), Sch 2, 3, Sch 4 (items 1–7), Sch 5 (items 2–5), Sch 6 (items 1–9), Sch 7 (items 1, 2, 4–29), Sch 8, Sch 9 (items 1, 2, 13–21), Sch 10 (item 2), Sch 11 (items 1–3), Sch 12, 13, Sch 14 (items 1–7), Sch 16 (items 1–3), Sch 19 (items 1–3), Sch 21, 22, Sch 23 (items 10–13) and Sch 24 (items 20–23): 24 Oct 2002 (s 2(1) items 1A, 2–11, 13, 14) Sch 7 (item 3): ( see Sch 10 (item 224) of Act No. 41, 2005) Sch 25 (items 1–10), Sch 26 (items 1–4, 8), Sch 27 (items 1–19, 21), Sch 28 (items 1–12, 19), Sch 29 (items 12, 13) and Sch 30 (items 1, 2): 29 June 2002 (s 2(1) items 15–19, 21, 23) | Repealed and substituted by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 45 of 2008, effective 26 June 2008 | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015