Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p64
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 64/79)
Character Range: 5000686–5003306

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

General rules

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.

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