Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_87:p1
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 87 (pt 1/3)
Character Range: 197270–200063

87  After Part 3‑3
Insert:

Part 3‑35—Life Insurance Business

Division 320—Life insurance companies

Table of Subdivisions

320‑A Preliminary
320‑C Deductions and capital losses
320‑F Virtual PST component of complying superannuation class
320‑H Segregation of assets for the purpose of discharging exempt life insurance policies

Operative provisions

Subdivision 320‑A—Preliminary

320‑5  Life insurance companies that are friendly societies

  If:
 (a) any assets held by the benefit funds of a *life insurance company that is a *friendly society for the purpose of providing superannuation benefits to its members are transferred before 1 July 2001 to a *complying superannuation fund; and
 (b) the persons who had interests in those assets immediately before the transfer had substantially the same interests in the assets after the transfer;
the transfer is disregarded for any purposes of the Income Tax Assessment Act 1997 or the Income Tax Assessment Act 1936.

Subdivision 320‑C—Deductions and capital losses

320‑85  Deduction for increase in value of liabilities under risk components of life insurance policies

 (1) In working out the amount that a *life insurance company can deduct, in respect of *life insurance policies that are *disability policies (other than *continuous disability policies) under subsection 320‑85(1) of the Income Tax Assessment Act 1997 for the income year in which 1 July 2000 occurs, the *value of the company's liabilities under the *net risk components of the policies at the end of the previous income year is taken to be the value of the liabilities as at the end of 30 June 2000 relating to those policies that was used by the company for the purposes of its return of income.

 (2) In working out the amount that a life insurance company can deduct, in respect of life insurance policies (other than policies to which subsection (1) applies) under subsection 320‑85(1) of the Income Tax Assessment Act 1997 for the income year in which 1 July 2000 occurs, the value of the company's liabilities under the net risk components of the policies at the end of the previous income year is taken to be the value of the company's liabilities as at the end of 30 June 2000 under the net risk components relating to those policies as calculated under subsection 320‑85(4) of that Act.

Subdivision 320‑F—Virtual PST component of complying superannuation class

320‑170  Transfer of part of an asset to a virtual PST

 (1) This section applies to an asset (an approved asset) of a *life insurance company if:
 (a) the asset was *acquired by the company before 1 July 2000; and
 (b) the asset is held in an *Australian fund or an *Australian/overseas fund of the company; and
 (c) the *market value of the asset at that date exceeds whichever is the