Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.80

  (1)   A * life insurance company can deduct the amounts paid in respect of the * risk components of claims paid under * life insurance policies during the income year.

  (2)   The risk component of a claim paid under a * life insurance policy is:

  (a)   if:

  (i)   the policy does not provide for * participating benefits or * discretionary benefits; and

  (ii)   the policy is neither an * exempt life insurance policy nor a * funeral policy; and

  (iii)   an amount is payable under the policy only on the death or disability of the insured person;

    the amount paid under the policy as a result of the occurrence of that event; or

  (b)   if the policy provides for participating benefits or discretionary benefits or is an exempt life insurance policy or a funeral policy--nil; or

  (c)   otherwise--the amount paid under the policy as a result of the death or disability of the insured person less the * current termination value of the policy (calculated by an * actuary) immediately before the death, or the occurrence of the disability, of the person.

  (3)   Except as provided by subsection   (1), a * life insurance company cannot deduct amounts paid in respect of claims under * life insurance policies.