Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26ah:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26AH (pt 2/5)
Character Range: 214618–217210

does not apply in relation to an amount in relation to an eligible policy if the amount is re‑invested or otherwise dealt with on behalf of the taxpayer or as the taxpayer directs so as to increase the amount that might reasonably be expected to be received under the eligible policy on a surrender or maturity of the eligible policy.
 (6) Where, during the eligible period in relation to an eligible policy, a taxpayer receives an amount (in this subsection referred to as the relevant amount) under the policy as or by way of a bonus, being an amount that, but for this section, would not be included in the assessable income of the taxpayer of any year of income, the assessable income of the taxpayer of the year of income in which the relevant amount is received shall include:
 (a) if the relevant amount is received during the first 8 years of the eligible period—an amount equal to the relevant amount;
 (b) if the relevant amount is received during the ninth year of the eligible period—an amount equal to two‑thirds of the relevant amount; or
 (c) if the relevant amount is received during the tenth year of the eligible period—an amount equal to one‑third of the relevant amount.
 (6A) If, during the year of income, an amount referred to in subsection (6) is received during the eligible period in relation to an eligible policy held by the trustee of a non‑complying superannuation fund:
 (a) subsection (6) does not apply to the amount; and
 (b) the amount is included in the assessable income of the fund of the year of income.
 (7) Subsection (6) does not apply to any amount received by a taxpayer in a year of income under an eligible policy where:
 (a) the amount is received in consequence of:
 (i) the death of the person on whose life the policy was effected; or
 (ii) an accident, illness or other disability suffered by the person on whose life the policy was effected; or
 (aa) the eligible policy is an RSA; or
 (b) the eligible policy is held by the trustee of:
 (i) a complying superannuation fund; or
 (ii) a complying approved deposit fund; or
 (iii) a pooled superannuation trust; or
 (ba) the eligible policy is issued by a life assurance company and the company's liabilities under the policy are to be discharged out of:
 (i) complying superannuation assets within the meaning of the Income Tax Assessment Act 1997; or
 (ii) segregated exempt assets within the meaning of that Act; or
 (c) except where the policy was effected, purchased or taken on assignment with a view to it being forfeited, surrendered or otherwise terminated, or to it maturing, within