Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_84:p8
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 84 (pt 8/26)
Character Range: 150170–152840

adjustments to be made because of *contracts of reinsurance;
 (b) the sum of the *net premiums less so much of the net premiums as an *actuary determines to be attributable to fees and charges.

 (3) In respect of policies issued before 1 July 2001, the company can deduct, in respect of *life insurance premiums received in the income year, the sum of the *net premiums less so much of the net premiums as an *actuary determines to be attributable to fees and charges.

 (4) In making a determination referred to in paragraph (2)(b) or subsection (3), an *actuary is to have regard to the changes over the income year in the sum of the *net current termination values of the policies and the movements in those values during the income year.

320‑80  Deduction for certain claims paid under life insurance policies

 (1) A *life insurance company can deduct the amounts paid in respect of the *risk components of claims paid under *life insurance policies during the income year.

 (2) The risk component of a claim paid under a *life insurance policy is:
 (a) if:
 (i) the policy does not provide for *participating benefits or *discretionary benefits; and
 (ii) the policy is not an *exempt life insurance policy; and
 (iii) an amount is payable under the policy only on the death or disability of the insured person;
  the amount paid under the policy as a result of the occurrence of that event; or
 (b) if the policy provides for participating benefits or discretionary benefits or is an exempt life insurance policy—nil; or
 (c) otherwise—the amount paid under the policy as a result of the death or disability of the insured person less the *current termination value of the policy (calculated by an *actuary) immediately before the death, or the occurrence of the disability, of the person.

 (3) Except as provided by subsection (1), a *life insurance company cannot deduct amounts paid in respect of claims under *life insurance policies.

320‑85  Deduction for increase in value of liabilities under net risk components of life insurance policies

 (1) A *life insurance company can deduct the amount (if any) by which the *value, at the end of the income year, of its liabilities under the *net risk components of *life insurance policies exceeds the value, at the end of the previous income year, of those liabilities.

Note 1: Where the value at the end of the income year is less than the value at the end of the previous income year, the difference is included in assessable income: see paragraph 320‑15(h).

Note 2: Section 320‑85 of the Income Tax (Transitional Provisions) Act 1997 makes special provision in respect of the calculation of the value