Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 11/14)
Character Range: 5069174–5071852

from events that occurred in that or an earlier income year; and
 (ii) were not paid in full before the end of the previous income year; exceeds
 (b) the value, at the end of the current year, of that liability.
Note: Those values are worked out under section 321‑90.

321‑85  Deduction for outstanding claims liability
  A company that is not required by law to insure, and does not insure, against liability for workers' compensation claims can deduct for the *current year an amount equal to the amount (if any) by which:
 (a) the value, at the end of the current year, of the company's liability for such claims that:
 (i) arose from events that occurred in the current or an earlier income year; and
 (ii) were not paid in full before the end of the current year; exceeds
 (b) the value, at the end of the previous income year, of that liability.
Note: Those values are worked out under section 321‑90.

321‑90  How value of outstanding claims liability is worked out
  Work out the value, at the end of an income year, of a company's liability for claims covered by section 321‑80 or 321‑85 by adding up the amounts that, at the end of that income year, 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.

321‑95  Deductions for claims paid during current year
  A company that is not required by law to insure, and does not insure, against liability for workers' compensation claims can deduct for the *current year amounts paid during that year in respect of such claims.

Division 322—Assistance for policyholders with insolvent general insurers

Guide to Division 322

322‑1  What this Division is about
      This Division sets out special measures to assist in the rescue package provided in response to the collapse of the HIH group and deals with the tax treatment of entitlements under Part VC (Financial claims scheme for policyholders with insolvent general insurers) of the Insurance Act 1973.

Table of sections
322‑5 Rescue payments treated as insurance payments by HIH
322‑10 HIH Trust exempt from tax
322‑15 Certain capital gains and capital losses disregarded

Subdivision 322‑A—HIH rescue package

322‑5  Rescue payments treated as insurance payments by HIH
 (1) This Act applies to you as if a payment you receive from the Commonwealth, the *HIH Trust or a prescribed entity for assignment of your rights under or in relation to a *general insurance policy you held with an *HIH company:
 (a) had been made by the HIH company; and
 (b) had been made under the terms and conditions