Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.247

When is a part of a policy taken to be an exempt life insurance policy?

  (1)   A part of a * life insurance policy (the original policy ) is taken to be an * exempt life insurance policy for the purposes of this Act if:

  (a)   the part provides solely for the discharge of the liabilities (contingent or not) in respect of * superannuation income stream benefits that are currently * RP superannuation income stream benefits of a * complying superannuation fund; and

  (b)   the trustee of the fund holds the original policy.

  (2)   A part of a * life insurance policy (the original policy ) is taken to be an * exempt life insurance policy for the purposes of this Act if:

  (a)   the part provides solely for the discharge of liabilities that are attributable to the liabilities (contingent or not) in respect of * superannuation income stream benefits that are currently * RP superannuation income stream benefits of * complying superannuation funds; and

  (b)   the trustee of a * pooled superannuation trust holds the original policy; and

  (c)   the funds are unit holders of the trust.

What happens to the rest of the policy?

  (3)   If a part of a policy (the original policy ) is taken to be an * exempt life insurance policy under subsection   (1) or (2), the rest of the original policy is taken to be another * life insurance policy for the purposes of this Act.