Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You can only deduct under this Act interest on, or other expenses associated with, money you borrow to pay a premium for a * life insurance policy if:
(a) the * risk component of the premium received by the insurer is the entire amount of the premium; and
(b) each amount the insurer is liable to pay under the policy would be included in your assessable income if it were paid.
(2) The risk component of a premium for a * life insurance policy means the amount of the premium worked out on the basis specified in the regulations.