Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_84:p18
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 84 (pt 18/26)
Character Range: 174533–177286

the transfer.

320‑205  What is the virtual PST component

 (1) The virtual PST component of the *complying superannuation class of a *life insurance company's taxable income for an income year is the sum of the amounts of the company's assessable income for the income year referred to in subsection (3), reduced by the sum of the amounts of the reductions referred to in subsection (4).

 (2) However, if the sum of the amounts of the company's assessable income for the income year referred to in subsection (3) is less than the sum of the amounts of the deductions referred to in subsection (4):
 (a) the company cannot apply the difference to reduce the *complying superannuation class of the company's taxable income for the income year; but
 (b) the company can apply the difference to reduce any *virtual PST component of the complying superannuation class of the company's taxable income for a later income year.

 (3) The amounts of assessable income are:
 (a) amounts of *ordinary income and *statutory income derived by the company during the income year from the investment of *virtual PST assets where the amounts relate to the period during which those assets were virtual PST assets; and
 (b) the *transfer values of any assets transferred by the company during the income year to the *virtual PST under subsection 320‑180(2) or 320‑185(1) or (3); and
 (c) if an asset (other than money) is transferred from a virtual PST under subsection 320‑180(1) or 320‑195(2) or (3)—the amount (if any) that is included in the company's assessable income because of section 320‑200; and
 (d) amounts included in the company's assessable income for the income year under section 275 of the Income Tax Assessment Act 1936; and
 (e) *specified roll‑over amounts paid to the company during the income year for the purchase of *deferred annuities where the *life insurance premiums relating to those annuities have been transferred to a virtual PST under subsection 320‑185(3).

 (4) The amounts of the reductions are:
 (a) the amounts that the company can deduct in respect of *life insurance premiums under section 320‑55; and
 (b) any losses (other than *capital losses) made during the income year from the investment of *virtual PST assets where the losses relate to the period during which the assets were virtual PST assets; and
 (c) the *transfer values of any assets transferred by the company during the income year from the *virtual PST under subsection 320‑180(1) or 320‑195(3); and
 (ca) if an asset (other than money) is transferred from a virtual PST under subsection 320‑180(1) or 320‑195(2) or (3)—the amount (if any) that the company can deduct because of section 320‑87; and
 (d) deductible expenses incurred by the company during the