Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:5_2:p4
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 5 cl 2 (pt 4/4)
Character Range: 221803–223010

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.

Part 2—Consequential amendments

Income Tax Assessment Act 1936