Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_84:p13
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 84 (pt 13/26)
Character Range: 162606–165258

as a result of an annual valuation
320‑190 Virtual PST liabilities
320‑195 Transfer of assets and payment of amounts from a virtual PST otherwise than as a result of an annual valuation
320‑200 Consequences of transfer of assets to or from virtual PST
320‑205 What is the virtual PST component

[This is the end of the Guide.]

Operative provisions

320‑170  Establishment of virtual PST

 (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 *virtual PST liabilities out of those assets.

Note: Section 320‑170 of the Income Tax (Transitional Provisions) Act 1997 provides that a life insurance company may transfer a part of an asset to a virtual PST before 1 October 2000.

 (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 *virtual PST 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 *virtual PST liabilities immediately before the segregation.

 (3) The assets segregated must have, at the time of the segregation, a total *transfer value that does not exceed the sum of:
 (a) the company's *virtual PST liabilities at that time; and
 (b) any reasonable provision made by the company at that time in its accounts for liability for tax on unrealised gains in respect of the assets segregated; and
 (c) the total amount of any unpaid *PAYG instalments relating to the *virtual PST component of the *complying superannuation class of the company's taxable income for the income year.

 (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 *virtual PST liabilities.

 (6) The assets from time to time segregated are together to be known as a virtual pooled superannuation trust or a virtual PST and each asset from time to time included among the segregated assets is to be known as a virtual PST asset.

 (7) In this Subdivision:
 (a) a reference to the transfer of an asset to, or from, the *virtual PST:
 (i) is a reference to the inclusion of the asset