Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 11/30)
Character Range: 6172158–6174848

or
 (b) if all the membership interests (if any) that the life insurance company owns directly in the life insurance subsidiary, and all the membership interests (if any) that the life insurance company owns directly in interposed entities, are *complying superannuation assets of the life insurance company—the amount worked out under subsection (6); or
 (c) otherwise—nil.
 (6) The amount is worked out using the following formula (or is nil if it would otherwise be negative):
where:
complying superannuation class tax rate means the rate of tax in respect of the *complying superannuation class of the taxable income of a *life insurance company for the income year in which the joining time occurs (see paragraph 23A(b) of the Income Tax Rates Act 1986).
ordinary class tax rate means the rate of tax in respect of the *ordinary class of the taxable income of a life insurance company for the income year in which the joining time occurs (see paragraph 23A(a) of the Income Tax Rates Act 1986).

713‑550  Treatment of head company's franking account after joining
  Sections 709‑70 and 709‑75 do not apply in relation to a *subsidiary member of a *consolidated group if:
 (a) the subsidiary member is a *life insurance company; or
 (b) a life insurance company that is a *member of the group owns *membership interests, either directly or indirectly through one or more interposed entities, in the subsidiary member.

Liabilities for life insurance companies leaving consolidated group

713‑565  Treatment of certain liabilities for income year when life insurance company leaves consolidated group
 (1) This section affects how paragraph 320‑15(1)(h) and section 320‑85 apply if:
 (a) a *life insurance company ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) at the leaving time, the *life insurance company has one or more liabilities under the *net risk components of life insurance policies.
Note: Paragraph 320‑15(1)(h) and section 320‑85 both operate on the basis of a comparison of the value of a life insurance company's liabilities under the net risk components of life insurance policies at the end of the current year with the value of those liabilities at the end of the previous year, so that:
(a) that paragraph includes an amount in the company's assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and
(b) that section allows a deduction for the current year if the value at the end of the current year is more than the value at the end of the previous income year.
 (2) The object of this section is to ensure that:
 (a) the