Document ID: chunk:federal_register_of_legislation:C2024A00052:clause:6_27:p2
Version: federal_register_of_legislation:C2024A00052
Segment Type: clause
Provision Reference: sch 6 cl 27 (pt 2/2)
Character Range: 50417–52403

equal to one‑fifth of the excess.

Premium income of general insurance companies
(6) If:
 (a) the value, at the end of the income year before the start year, of the company's unearned premium reserve as worked out:
 (i) under section 321‑60 of the Income Tax Assessment Act 1997 as in force immediately before the commencement of this Schedule; and
 (ii) not under that section as amended by this Schedule; exceeds
 (b) the value, at the end of the income year before the start year, of the company's adjusted liability for remaining coverage under general insurance policies as worked out under section 321‑60 of that Act as amended by this Schedule;
 the company's assessable income for each relevant income year includes an amount equal to one‑fifth of the excess.
(7) If:
 (a) the value, at the end of the income year before the start year, of the company's adjusted liability for remaining coverage under general insurance policies as worked out under section 321‑60 of the Income Tax Assessment Act 1997 as amended by this Schedule; exceeds
 (b) the value, at the end of the income year before the start year, of the company's unearned premium reserve as worked out:
 (i) under section 321‑60 of that Act as in force immediately before the commencement of this Schedule; and
 (ii) not under that section as amended by this Schedule;
 the company can deduct for each relevant income year an amount equal to one‑fifth of the excess.

Company ceases to carry on insurance business
(8) However, if the company ceases in a relevant income year to carry on an insurance business:
 (a) subitems (4) to (7) do not apply for that income year or any future income years; and
 (b) instead, for that income year, so much of any excess referred to in any of those subitems as has not been included in the company's assessable income, or allowed as a deduction, for any previous relevant income years is to be included in that assessable income or allowed as a deduction (as the case requires).