Document ID: chunk:federal_register_of_legislation:C2025C00014:section:446:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 446 (pt 1/2)
Character Range: 2061451–2064255

446  Passive income
 (1) Subject to this Division, for the purposes of this Part, the following amounts are passive income of a company of a statutory accounting period:
 (a) dividends (within the meaning of section 6) paid to the company in the statutory accounting period;
 (b) unit trust dividends (within the meaning of Division 6C of Part III) paid to the company in the statutory accounting period;
 (c) a distribution made to the company where the distribution is taken to be a dividend because of section 47;
 (d) tainted interest income derived by the company in the statutory accounting period;
 (e) annuities derived by the company in the statutory accounting period;
 (f) tainted rental income derived by the company in the statutory accounting period;
 (g) tainted royalty income derived by the company in the statutory accounting period;
 (h) an amount derived by the company in the statutory accounting period as consideration for the assignment, in whole or in part, of any copyright, patent, design, trade mark or other like property or right;
 (j) income derived from carrying on a business of trading in tainted assets;
 (k) net gains that accrued to the company in the statutory accounting period in respect of the disposal of tainted assets;
 (m) net tainted commodity gains that accrued to the company during the statutory accounting period;
 (n) net tainted currency exchange gains that accrued to the company during the statutory accounting period.
 (2) Despite anything in subsection (1), the passive income of a life assurance company of a statutory accounting period is calculated using the formula:

where:
adjusted passive income means the amount that, apart from this subsection, would be the passive income of the company of the statutory accounting period.
total assets means the average of the total assets of the company for the statutory accounting period.
untainted policy liabilities means so much of the company's policy liabilities, as defined in the Valuation Standard (within the meaning of the Income Tax Assessment Act 1997), as calculated by a Fellow or Accredited Member of the Institute of Actuaries of Australia, for the statutory accounting period as is referable to life assurance policies that do not give rise to tainted services income of the company of any statutory accounting period.
 (4) Despite anything in subsection (1), the passive income of a general insurance company of a statutory accounting period is worked out using the formula:

where:
adjusted passive income means the amount that, apart from this subsection, would be the passive income of the company of the statutory accounting period.
net assets means the excess at the end of the statutory accounting period of the total assets of the company over the total liabilities of the