Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.131

Working out the income tax

  (1)   In any income year, a life insurance company can have:

  (a)   a taxable income of the complying superannuation class and/or a taxable income of the ordinary class; or

  (b)   a tax loss of the complying superannuation class and/or a tax loss of the ordinary class; or

  (c)   a taxable income of one class and a tax loss of the other class.

Note:   The taxable incomes mentioned in paragraph   (a) are taxed at different rates: see section   23A of the Income Tax Rates Act 1986 .

  (2)   Taxable incomes and tax losses of both classes are taken into account in working out the amount of income tax that the company has to pay for the income year (see section   320 - 134). That amount is then taken to be the income tax on the company's taxable income for that income year.

Working out taxable income and tax loss of each class

  (3)   In general, the rules in this Act about working out a company's taxable income or tax loss, or deducting a company's tax loss, apply to a life insurance company in relation to:

  (a)   working out a taxable income or tax loss of a particular class; or

  (b)   deducting a tax loss of a particular class.

  (4)   However, that general rule is subject to the following:

  (a)   sections   320 - 137 to 320 - 143, which allocate amounts of incomes and deductions for the purposes of working out a taxable income or tax loss of a particular class;

  (b)   subsections   320 - 141(2) and 320 - 143(2), which provide that tax losses of a particular class can be deducted only from incomes in respect of that class;

  (c)   section   320 - 149, which sets out the provisions in this Act that have effect only in relation to a taxable income or tax loss of the ordinary class.

Table of sections

General rules

320 - 133   Object of Subdivision

320 - 134   Income tax of a life insurance company

320 - 135   Taxable income and tax loss of each of the 2 classes

Taxable income and tax loss of life insurance companies

320 - 137   Taxable income--complying superannuation class

320 - 139   Taxable income--ordinary class

320 - 141   Tax loss--complying superannuation class

320 - 143   Tax loss--ordinary class

320 - 149   Provisions that apply only in relation to the ordinary class