Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:5_2:p3
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 5 cl 2 (pt 3/4)
Character Range: 219205–222017

by governments or governmental authorities that directly relate to general insurance policies.

           Step 3. Reduce the step 2 amount by any premiums (the relevant reinsurance premiums) paid or payable by the company, in that or an earlier income year, for the reinsurance of risks covered by those policies, except:

                (a) reinsurance premiums that the company cannot deduct because of subsection 148(1) of the Income Tax Assessment Act 1936 (about reinsurance with non‑residents); and
                (b) reinsurance premiums that were paid or payable in respect of a particular class of *insurance business where, under the contract of reinsurance, the reinsurer agreed to pay, in respect of a loss incurred by the company that is covered by the relevant policy, some or all of the excess over an agreed amount.

           Step 4. Add to the step 3 amount any reinsurance commissions received or receivable by the company that relate to the relevant reinsurance premiums.
           Step 5. The value, at the end of an income year, of the unearned premium reserve is so much of the step 4 amount as the company determines, based on proper and reasonable estimates, to relate to risks covered by the policies in respect of later income years.

Subdivision 321‑C—Companies that self‑insure in respect of workers' compensation liabilities

Table of sections

321‑80 Assessable income to include amount for reduction in outstanding claims liability
321‑85 Deduction for outstanding claims liability
321‑90 How value of outstanding claims liability is worked out
321‑95 Deductions for claims paid during current year

321‑80  Assessable income to include amount for reduction in outstanding claims liability

  The assessable income for the *current year of a company that is not required by law to insure, and does not insure, against liability for workers' compensation claims includes an amount equal to the amount (if any) by which:
 (a) the value, at the end of the previous income year, of the company's liability for such claims that:
 (i) arose from events that occurred in that or an earlier income year; and
 (ii) were not paid in full before the end of the previous income year; exceeds
 (b) the value, at the end of the current year, of that liability.

Note: Those values are worked out under section 321‑90.

321‑85  Deduction for outstanding claims liability

  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 an amount equal to the amount (if any) by 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