Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 8/30)
Character Range: 6164506–6167247

320‑190 at the joining time.
 (3) The value of the joining entity's *exempt life insurance policy liabilities (if any) is the amount worked out under section 320‑245 at the joining time.
 (4) Subsection (5) applies to a liability of the joining entity if:
 (a) the liability is under the *net risk component of a *life insurance policy; and
 (b) the joining entity could deduct under section 320‑80 an amount for the *risk component of claims paid under the policy had it not become a *member of the *consolidated group.
 (5) The value of that liability is the *current termination value of the *net risk component of the *life insurance policy at the joining time (calculated by an *actuary).
 (6) The value of the joining entity's liabilities under the *net investment component of ordinary life insurance policies is the amount worked out for those liabilities under subsection 320‑190(2) as if those liabilities were *complying superannuation liabilities.

713‑525  Obligation to value certain assets and liabilities at joining time
  Division 320 has effect as if the time when a *life insurance company becomes a *subsidiary member of a *consolidated group were a *valuation time for the purposes of sections 320‑175 and 320‑230.
Note: This means that there must be a valuation of the complying superannuation assets and complying superannuation liabilities under section 320‑175 (with the consequences set out in section 320‑180), and a valuation of the segregated exempt assets and exempt life insurance policy liabilities under section 320‑230 (with the consequences set out in section 320‑235), as at that time.

Losses of life insurance companies joining consolidated group

713‑530  Treatment of certain losses of life insurance company
 (1) This section applies if:
 (a) a *life insurance company becomes a *member of a *consolidated group at a time (the joining time); and
 (b) just before the joining time, the life insurance company had either:
 (i) a *tax loss of the *complying superannuation class; or
 (ii) a *net capital loss from *complying superannuation assets.
 (2) This Act operates (except so far as the contrary intention appears) for the purposes of income years ending after the joining time as if:
 (a) the *head company of the *consolidated group had made the loss for the income year in which the joining time occurs; and
 (b) the *life insurance company had not made the loss for the income year for which it made the loss.
 (3) The *head company is not prevented from *utilising the loss for the income year in which the joining time occurs merely because this Act operates as if the head company had made the loss for that year.
 (4) Division 707 does not apply in relation to the *net capital loss or the