Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p75
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 75/79)
Character Range: 5028438–5031303

from an *associate of the company.
Note: This means that, amongst other things, as a result of the transfer:
                *  the asset's cost for the purposes of working out a deduction under Division 40 is reset; and
                *  the company's assessable income might be adjusted under section 40‑285.
 (3) If, apart from this subsection and section 320‑55, a *life insurance company could deduct an amount or make a *capital loss as a result of a transfer of an asset to or from its *complying superannuation asset pool, the deduction or capital loss is disregarded until:
 (a) the asset ceases to exist; or
 (b) the asset, or a greater than 50% interest in it, is *acquired by an entity other than an entity that is an *associate of the company immediately after the transfer.
 (4) Subsection (3) does not apply in relation to an amount that the company can deduct under a provision in Division 40.

Subdivision 320‑H—Segregation of assets to discharge exempt life insurance policy liabilities

Guide to Subdivision 320‑H

320‑220  What this Subdivision is about
      This Subdivision explains how a life insurance company can segregate assets to be used for the sole purpose of discharging its liabilities under life insurance policies where the income derived by the company from those policies is exempt from income tax.

Table of sections

Operative provisions
320‑225 Segregation of assets for purpose of discharging exempt life insurance policy liabilities
320‑230 Valuations of segregated exempt assets and exempt life insurance policy liabilities for each valuation time
320‑235 Consequences of a valuation under section 320‑230
320‑240 Transfer of assets to segregated exempt assets otherwise than as a result of a valuation under section 320‑230
320‑245 Exempt life insurance policy liabilities
320‑246 Exempt life insurance policy
320‑247 Policy split into an exempt life insurance policy and another life insurance policy
320‑250 Transfer of assets and payment of amounts from segregated exempt assets otherwise than as a result of a valuation under section 320‑230
320‑255 Consequences of transfer of assets to or from segregated exempt assets

Operative provisions

320‑225  Segregation of assets for purpose of discharging exempt life insurance policy liabilities
 (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 *exempt life insurance policy liabilities out of those assets.
Note: Section 320‑225 of the Income Tax (Transitional Provisions) Act 1997 provides that a life insurance company may transfer a part of an asset to its segregated exempt assets before 1 October 2000.
 (1A) Except as provided by section 320‑225 of the Income Tax (Transitional Provisions) Act 1997, an asset is taken not to be included in