Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:1_6:p1
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 1/3)
Character Range: 126985–129708

6                                              So much of other insurance policy premiums as are attributable to the liability to provide benefits referred to in section 295‑460

Note: If the fund receives a rebate or refund of an insurance premium, the amount may be included in its assessable income: see table item 4 in section 295‑320.

 (2) A *complying superannuation fund can also deduct the amount it could reasonably be expected to pay in an *arm's length transaction to obtain an insurance policy to cover it for that part of its current or contingent liabilities to provide benefits referred to in section 295‑460 for which it does not have insurance coverage. It can deduct the amount for the income year when it has the liability.

Actuary's certificate

 (3) The trustee must obtain an *actuary's certificate before the date for lodgment of the fund's *income tax return for the income year in order to deduct an amount referred to in item 6 of the table or in subsection (2).

Choice not to deduct amounts under this section

 (4) The trustee may choose not to deduct amounts under this section for an income year and to deduct instead (under section 295‑470) amounts based on the fund's future liability to pay the benefits.

 (5) The choice applies also to future income years unless the Commissioner decides that it should not.

295‑470  Complying funds—deductions for future liability to pay benefits

 (1) A *complying superannuation fund can deduct an amount under this section for an income year if:
 (a) the trustee of the fund makes a choice under subsection 295‑465(4) and the choice applies to the income year; and
 (b) the trustee pays:
 (i) a benefit referred to in paragraph 295‑460(a) or (b) for the income year in consequence of the termination of a member's employment; or
 (ii) a benefit referred to in paragraph 295‑460(c).

 (2) The amount the fund can deduct is:
where:

benefit amount is:
 (a) for a benefit that is a *superannuation lump sum—the amount of the lump sum; or
 (b) for a benefit that is a *superannuation income stream—the *value of the *superannuation interest supporting the income stream; or
 (c) for a benefit referred to in paragraph 295‑460(c)—the total of the amounts paid during the income year.

future service days is the number of days in the period starting when:
 (a) the termination happened; or
 (b) for a benefit referred to in paragraph 295‑460(c)—the member became unable to perform normal work duties;
and ending on the member's *last retirement day.

total service days is the sum of future service days and the number of days in:
 (a) for a benefit that is a *superannuation lump sum—the *service period for the superannuation lump sum; or
 (b) for