Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p42
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 42/64)
Character Range: 503914–506423

loss of the ordinary class.

Subdivision 320‑F—Virtual PST

Table of sections
320‑170 Transfer of part of an asset to a virtual PST
320‑175 Transfers of assets to virtual PST
320‑180 Deferred annuities purchased before 1 July 2007

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 lesser of:
 (i) $50,000,000; or
 (ii) whichever is the greater of 2% of the value of that fund at that date or $5,000,000.
 (2) If the life insurance company wishes to include a part of an approved asset in its virtual PST before 1 October 2000, the company must, before that date, certify in writing the part (if any) of the asset to be included in the virtual PST.
 (3) If the life insurance company so certifies, the part of the asset stated in the certificate is to be treated as a separate asset of the company.

320‑175  Transfers of assets to virtual PST
 (1) If:
 (a) a life insurance company had a liability before 1 July 2000 under a life insurance policy; and
 (b) the liability or a part of the liability is to be discharged out of the company's virtual PST assets; and
 (c) there is a transfer of the company's assets to the virtual PST to meet that liability or that part of the liability;
then, to the extent to which the assets are transferred to meet that liability or that part of the liability:
 (d) if the transfer occurs before 1 October 2000—the transfer is to be disregarded for the purposes of the Income Tax Assessment Act 1997; or
 (e) if the transfer occurs on or after 1 October 2000—the transfer is to be disregarded for the purposes of that Act, except:
 (i) section 320‑200 of that Act; and
 (ii) any other provisions that rely on the operation of that section (for example, paragraph 320‑15(1)(e) of that Act).
Note: This means, amongst other things, that a life insurance company to which this subsection applies will not be able to claim a deduction in respect of the transfer under subsection 320‑87(2) of that Act.
 (1A) If subsection (1) has applied to a life insurance company in respect of a transfer of assets to meet a liability or a part of a liability, that subsection does not apply again in respect of another transfer of assets to meet that liability