Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An exempt life insurance policy is a * life insurance policy (other than an * RSA):
(a) that is held by the trustee of a * complying superannuation fund and provides solely for the discharge of the fund's liabilities (contingent or not) in respect of * superannuation income stream benefits that are currently * RP superannuation income stream benefits of the fund; or
(b) that is held by the trustee of a * pooled superannuation trust, where:
(i) the policy 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 complying superannuation funds; and
(ii) the funds are unit holders of the trust; or
(c) that is held by another * life insurance company and is a * segregated exempt asset of that other company; or
(d) that is held by the trustee of a * constitutionally protected fund; or
(e) that provides for an * immediate annuity that:
(i) was purchased on or before 9 December 1987; or
(ii) is a * superannuation income stream that is in the * retirement phase; or
(iii) satisfies whichever of the conditions in subsection (3) are applicable; or
(ea) that provides for an * annuity that:
(i) is not an * immediate annuity; and
(ii) is a superannuation income stream that is in the retirement phase; or
(f) that provides for either or both of the following:
(i) a * personal injury annuity, payments of which are exempt from income tax under Division 54;
(ii) a * personal injury lump sum, payment of which is exempt from income tax under Division 54.
Note: A part of a life insurance policy may be taken to be an exempt life insurance policy under section 320 - 247.
(3) The following table sets out the conditions mentioned in subparagraph (1)(e)(iii):
Annuity conditions | ||
Item | Column 1 The condition in column 2 applies in the following circumstances ... | Column 2 The condition is that ... |
1 | there is a residual capital value (within the meaning of section 27H of the Income Tax Assessment Act 1936 ) in relation to the * immediate annuity. | the contract under which the annuity is payable does not permit the residual capital value to exceed the annuity's purchase price (within the meaning of that section). |
2 | the contract under which the * immediate annuity is payable provides that the annuity is payable until the end of a term of years certain. | the contract does not permit the total of the amounts paid for the annuity's commutation (whether in whole or in part) to exceed the annuity's purchase price (within the meaning of that section), reduced by the sum of the deductible amounts excluded from assessable income under that section. |
3 | the contract under which the * immediate annuity is payable: (a) provides that the annuity is payable until the later of: (i) the death of a person (or the death of the last of 2 or more persons to die); or (ii) the end of a term of years certain; and (b) permits one or more amounts ( commutation payments ) to become payable before the end of the term of years certain for the annuity's commutation (whether in whole or in part). | the contract does not permit the total of the commutation payments that may become payable before the end of the term of years certain to exceed the annuity's purchase price (within the meaning of that section), reduced by the sum of the deductible amounts excluded from assessable income under that section. |
4 | all circumstances. | there is no unreasonable deferral of the payments of the * immediate annuity, having regard to: (a) to the extent to which the payments depend on the returns of the investment of the assets of the * life insurance company paying the annuity--when the payments are made and when those returns are * derived; and (b) to the extent to which the payments do not depend on those returns--the relative sizes of the annual totals of the payments from year to year; and (c) any other relevant factors. |