Document ID: chunk:federal_register_of_legislation:C2010C00575:schedule:2j:p5
Version: federal_register_of_legislation:C2010C00575
Segment Type: schedule
Provision Reference: sch 2J (pt 5/5)
Character Range: 25942–27838

be included in assessable income for outstanding claims liability

  If the value, at the end of a year of income (the current year of income), of the outstanding claims liability for workers' compensation claims of a company that is not required by law to insure, and does not insure, against liability for such claims is less than the value, at the end of the previous year of income, of that liability, the company's assessable income of the current year of income includes an amount equal to the difference.

323‑10  Deduction for outstanding claims liability

  If the value, at the end of a year of income (the current year of income), of the outstanding claims liability for workers' compensation claims of a company that is not required by law to insure, and does not insure, against liability for such claims exceeds the value, at the end of the previous year of income, of that liability, the company can deduct for the current year of income an amount equal to the excess.

323‑15  How value of outstanding claims liability is worked out

  The value of the outstanding claims liability, at the end of a year of income, of a company for workers' compensation claims is the sum of the amounts that, at that time, the company determines, based on proper and reasonable estimates, to be appropriate to set aside and invest in order to meet:
 (a) liabilities for those claims; and
 (b) direct settlement costs associated with those claims.

323‑20  Deductions for claims paid during year of income

  A company that is not required by law to insure, and does not insure, against liability for workers' compensation claims can deduct amounts paid during the year of income in respect of such claims.

323‑25  Application

  This Division applies, and is taken to have applied, to assessments for the 1996‑97 year of income and all later years of income.

Income Tax Assessment Act 1997