Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 5/14)
Character Range: 5053178–5056195

the first element of the asset's *cost were equal to the consideration for the purchase under that subsection; and
 (iii) the company had acquired the asset from an *associate of the company.
Note: This means that, amongst other things, as a result of the transfer:
                *  the asset's cost for the purposes of working out a deduction under Division 40 is reset; and
                *  the company's assessable income might be adjusted under section 40‑285 if the transfer is a transfer to the company's segregated exempt assets.

Subdivision 320‑I—Transfers of business

Guide to Subdivision 320‑I

320‑300  What this Subdivision is about
      This Subdivision contains special rules that apply when all or part of the life insurance business of a life insurance company is transferred to another life insurance company under the Life Insurance Act 1995 or the Financial Sector (Transfer and Restructure) Act 1999.

Table of sections

Operative provisions
320‑305 When this Subdivision applies
320‑310 Special deductions and amounts of assessable income
320‑315 Complying superannuation asset pool and segregated exempt assets
320‑320 Certain amounts treated as life insurance premiums
320‑325 Friendly societies
320‑330 Immediate annuities
320‑335 Parts of assets treated as separate assets
320‑340 Continuous disability policies
320‑345 Exemption of management fees

Operative provisions

320‑305  When this Subdivision applies
  The rules in this Subdivision have effect if all or part of the *life insurance business of a *life insurance company (the originating company) is transferred to another life insurance company (the recipient company):
 (a) in accordance with a scheme confirmed by the Federal Court of Australia under Part 9 of the Life Insurance Act 1995; or
 (b) under the Financial Sector (Transfer and Restructure) Act 1999.

320‑310  Special deductions and amounts of assessable income

Deduction for originating company
 (1) If the originating company pays an amount to the recipient company in respect of liabilities under the *net risk components of *life insurance policies transferred to the recipient company, the originating company can deduct that amount for the income year in which the transfer took place.

Amount included in originating company's assessable income
 (2) If the originating company receives an amount from the recipient company in respect of liabilities under the *net risk components of *life insurance policies transferred to the recipient company, that amount is included in the assessable income of the originating company for the income year in which the transfer took place.

Deduction for recipient company
 (3) If the recipient company pays an amount to the originating company in respect of liabilities under the *net risk components of *life insurance policies transferred to the recipient company, the recipient company can deduct that amount for the income year in which the transfer took place.

320‑315  Complying superannuation asset pool and