Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.30

  (1)   This section applies to a * life insurance company for each of the following income years (each a relevant income year ):

  (a)   the income year in which 1   July 2000 occurs;

  (b)   the 4 following income years.

Note:   The effect of this section is modified when the life insurance business of a life insurance company is transferred to another life insurance company: see section   320 - 340.

  (2)   If:

  (a)   the * value of the company's liabilities at the end of 30   June 2000 under its * continuous disability policies (being the value used by the company for the purposes of its * income tax return);

exceeds

  (b)   the value of the company's liabilities at the end of 30   June 2000 under the * net risk components of its continuous disability policies as calculated under subsection   320 - 85(4);

the company's assessable income for each relevant income year includes an amount equal to one - fifth of the excess.

  (3)   However, if a * life insurance company ceases in a relevant income year to carry on * life insurance business or to have any liabilities under the * net risk components of * continuous disability policies, subsection   (2) does not apply for that income year or any future income years but the company's assessable income for that income year includes so much of the excess referred to in subsection   (2) as has not been included in the company's assessable income for any previous relevant income years.