Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:1_57:p1
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 1 cl 57 (pt 1/2)
Character Range: 56927–59542

57  After section 320‑245
Insert:

320‑246  Exempt life insurance policy

 (1) An exempt life insurance policy is a *life insurance policy (other than an *RSA):
 (a) that is held by the trustee of a *complying superannuation fund and provides solely for the discharge of the current pension liabilities (within the meaning of Part IX of the Income Tax Assessment Act 1936) of the fund; or
 (b) that is held by the trustee of a *pooled superannuation trust, where:
 (i) the policy provides solely for the discharge of the current pension liabilities (within the meaning of Part IX of the Income Tax Assessment Act 1936) of complying superannuation funds; and
 (ii) the funds are unit holders of the trust; or
 (c) that is held by another *life insurance company and is a *segregated exempt asset of that other company; or
 (d) that is held by the trustee of a *constitutionally protected fund; or
 (e) that provides for an *immediate annuity that:
 (i) was purchased on or before 9 December 1987 and was not purchased wholly or partly with a rolled‑over amount; or
 (ii) satisfies the conditions in subsections (3), (4) and (5) and was purchased on or before 9 December 1987 wholly or partly with a rolled‑over amount; or
 (iii) satisfies the conditions in subsections (3), (4) and (5) and was purchased after 9 December 1987.

Note: A part of a life insurance policy may be taken to be an exempt life insurance policy under section 320‑247.

 (2) In subsection (1), a rolled‑over amount has the same meaning as it has under section 27A of the Income Tax Assessment Act 1936.

 (3) An *immediate annuity satisfies the conditions in this subsection if it is payable until the later of:
 (a) the death of a person (or the death of the last to die of 2 or more persons); or
 (b) the end of a fixed term.

 (4) An *immediate annuity satisfies the conditions in this subsection if the contract under which it is payable does not permit:
 (a) the total amount payable for its commutation to exceed its reduced purchase price (within the meaning of section 27A of the Income Tax Assessment Act 1936); and
 (b) any payment of its residual capital value (within the meaning of that section) to exceed its purchase price (within the meaning of that section).

 (5) An *immediate annuity satisfies the conditions in this subsection if there is no unreasonable deferral of the payments of the annuity, having regard to:
 (a) to the extent to which the payments depend on the returns of the investment of the assets of the *life insurance company paying the annuity—when the payments are made and when those returns are derived;