Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26ah:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26AH (pt 1/5)
Character Range: 212261–214831

26AH  Bonuses and other amounts received in respect of certain short‑term life assurance policies
 (1) In this section, unless the contrary intention appears:
agreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.
assurance year, in relation to an eligible policy, means the period of 12 months commencing on, or on any anniversary of, the date of commencement of risk of the policy.
date of commencement of risk, in relation to an eligible policy, means the date of commencement of the period in respect of which the first or only premium paid under the policy was paid or, if the first or only premium was not paid in respect of a period, the date on which that premium was paid.
eligible period, in relation to an eligible policy, means the period of 10 years commencing on the date of commencement of risk of the policy.
eligible policy means a life assurance policy in relation to which the date of commencement of risk is after 27 August 1982, other than a funeral policy (as defined in the Income Tax Assessment Act 1997) issued on or after 1 January 2003.
eligible reckoning date, in relation to an eligible policy, means the date of commencement of an assurance year that, for the purposes of an application of subsection (13), is the premium increase year referred to in that subsection.
 (2) Where a paid‑up life assurance policy is issued to a taxpayer in lieu of an eligible policy:
 (a) the paid‑up policy shall, for the purposes of this section, be deemed to be a continuation of the eligible policy; and
 (b) no amount shall be taken for the purposes of subsection (4) to have been re‑invested or otherwise dealt with on behalf of the taxpayer or as he or she directs in connection with the issue of the paid‑up policy to the taxpayer in lieu of the eligible policy.
 (3) This section applies to any amount received after 27 August 1982 under an eligible policy.
 (4) For the purposes of this section, but subject to subsection (5), a taxpayer shall be taken to have received an amount under or in relation to an eligible policy although the amount is not actually paid to the taxpayer but is re‑invested or otherwise dealt with on his or her behalf or as he or she directs.
 (5) Subsection (4) does not apply in relation to an amount in relation to an eligible policy if the amount is re‑invested or otherwise dealt with on behalf of the taxpayer or as the taxpayer directs so as to increase the amount that