Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_84:p1
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 84 (pt 1/26)
Character Range: 131670–134724

84  Section 195‑35 (link note)
Repeal the link note, substitute:

[The next Part is Part 3‑35]

Part 3‑35—Life insurance business

[The next Division is Division 320]

Division 320—Life insurance companies

Table of Subdivisions

 Guide to Division 320
320‑A Preliminary
320‑B What is included in a life insurance company's assessable income
320‑C Deductions and capital losses
320‑D Classes of taxable income of life insurance companies
320‑E RSA component of complying superannuation class
320‑F Virtual PST component of complying superannuation class
320‑G Specified roll‑over component of complying superannuation class
320‑H Segregation of assets to discharge exempt life insurance policy liabilities

Guide to Division 320

320‑1  What this Division is about

      This Division provides for the taxation of life insurance companies in a broadly comparable way to other entities that derive similar kinds of income.
      Because of the nature of the business of life insurance companies, the Division contains special rules for working out their taxable income.
      Those rules:
         • include certain amounts in assessable income;
         • identify certain amounts of exempt income;
         • identify specific deductions.
      The taxable income of life insurance companies is divided into 2 classes:
         • the complying superannuation class, which contains taxable income that relates to complying superannuation business and is taxed at the rate of tax that applies to complying superannuation funds
         • the ordinary class, which contains the rest of the taxable income and is taxed at the company tax rate.
      The Division also contains rules for segregating the assets of life insurance companies into:
         • assets that relate to complying superannuation business;
         • assets that relate to immediate annuity and other exempt business.
[This is the end of the Guide]

Operative provisions

Subdivision 320‑A—Preliminary

320‑5  Object of Division

 (1) The object of this Division is to provide for the taxation of *life insurance companies in a broadly comparable way to other entities that derive similar kinds of income.

 (2) To achieve this object, the Division:
 (a) identifies certain amounts that are included in the assessable income, or are exempt income, of a *life insurance company; and
 (b) identifies certain amounts that a life insurance company can deduct; and
 (c) identifies the part of the taxable income of a life insurance company that relates to complying superannuation business and allocates that income to the *complying superannuation class of the company's taxable income; and
 (d) allocates the rest of the taxable income to the *ordinary class of the company's taxable income; and
 (e) contains other provisions necessary to enable the taxable income of a life insurance company to be worked out.

Note: Section 320‑5 of the Income Tax (Transitional Provisions) Act 1997 provides that the tax consequences of certain transfers of assets of a life insurance company