Commonwealth Consolidated Acts

NEW BUSINESS TAX SYSTEM (MISCELLANEOUS) ACT (NO. 2) 2000 - SCHEDULE 9

1   Subsection 995 - 1(1)

Insert:

"actuary" means a Fellow or Accredited Member of the Institute of Actuaries of Australia.

2   Subsection 995 - 1(1)

Insert:

"allocated annuity" means an * immediate annuity that satisfies the requirements of subregulation 1.05(4) of the Superannuation Industry (Supervision) Regulations.

3   Subsection 995 - 1(1)

Insert:

"allocated pension" means a * current pension that satisfies the requirements of subregulation 1.06(4) of the Superannuation Industry (Supervision) Regulations.

4   Subsection 995 - 1(1)

Insert:

"annuity" includes:

  (a)   an annuity, within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or

  (b)   a pension, within the meaning of the Retirement Savings Accounts Act 1997 .

5   Subsection 995 - 1(1)

Insert:

"annual instalment component" of your * tax position has the meaning given by section   45 - 610 in Schedule   1 to the Taxation Administration Act 1953 .

6   Subsection 995 - 1(1)

Insert:

"Australian fund" has the meaning given by section   74 of the Life Insurance Act 1995 .

7   Subsection 995 - 1(1)

Insert:

"Australian/overseas fund" has the meaning given by section   74 of the Life Insurance Act 1995 .

8   Subsection 995 - 1(1)

Insert:

"complying superannuation class" of the taxable income of a * life insurance company has the meaning given by section   320 - 145.

9   Subsection 995 - 1(1)

Insert:

"component" of your * tax position has the meaning given by section   45 - 610 in Schedule   1 to the Taxation Administration Act 1953 .

10   Subsection 995 - 1(1)

Insert:

"constitutionally protected fund" has the same meaning as in Part   IX of the Income Tax Assessment Act 1936 .

11   Subsection 995 - 1(1)

Insert:

"continuous disability policy" has the meaning given by section   9A of the Life Insurance Act 1995 .

12   Subsection 995 - 1(1)

Insert:

"contract of reinsurance" means a contract of reinsurance in respect of * life insurance policies other than:

  (a)   the parts of * virtual PST life insurance policies in respect of which the liabilities of the company that issued the policies are to be discharged out of a * virtual PST; and

  (b)   policies that are * exempt life insurance policies.

13   Subsection 995 - 1(1)

Insert:

"current pension" means a pension that has begun to be paid.

14   Subsection 995 - 1(1)

Insert:

"current termination value" of a * life insurance policy, or of the * net risk component of a life insurance policy, has the meaning given in the * Solvency Standard.

15   Subsection 995 - 1(1)

Insert:

"deferred annuity" means an * annuity that is not presently payable.

16   Subsection 995 - 1(1)

Insert:

"disability policy" means a * life insurance policy under which a benefit is payable in the event of:

  (a)   the death, by accident or by some other cause stated in the contract, of the person whose life is insured (the insured ); or

  (b)   injury to, or disability of, the insured as a result of accident or sickness; or

  (c)   the insured being found to have a stated condition or disease;

but does not include a contract of consumer credit insurance within the meaning of the Insurance Contracts Act 1984 .

17   Subsection 995 - 1(1)

Insert:

"discretionary benefits" means investment account benefits (as defined by section   14 of the Life Insurance Act 1995 ) that are regarded as non - participating benefits for the purposes of that Act solely because of the operation of Prudential Rules No.   22 in force under section   252 of that Act.

18   Subsection 995 - 1(1)

Insert:

"endowment policy" has the same meaning as in Part   IX of the Income Tax Assessment Act 1936 .

19   Subsection 995 - 1(1)

Insert:

"excluded virtual PST life insurance policy" means a * life insurance policy that:

  (a)   provides only for death and disability benefits (other than * participating benefits) within the meaning of Part   IX of the Income Tax Assessment Act 1936 ; or

  (b)   is an * exempt life insurance policy.

20   Subsection 995 - 1(1)

Insert:

"exempt life insurance policy" means a * life insurance policy:

  (a)   that is held by the trustee of a * complying superannuation fund and is a segregated current pension asset (within the meaning of Part   IX of the Income Tax Assessment Act 1936 ); or

  (b)   that is held by the trustee of a * PST and is a * segregated exempt superannuation asset (within the meaning of Part   IX of that Act); or

  (c)   that is held by the trustee of a * constitutionally protected fund; or

  (d)   that provides for an * immediate annuity; or

  (e)   that:

  (i)   is held by a * life insurance company other than the life insurance company that issued the policy; and

  (ii)   is a * segregated exempt asset of the life insurance company that holds the policy.

21   Subsection 995 - 1(1)

Insert:

"exempt life insurance policy liabilities" of a * life insurance company means liabilities of the company under the * life insurance policies referred to in subsection 320 - 245(1).

22   Subsection 995 - 1(1)

Insert:

"foreign establishment amounts" means * ordinary income and * statutory income derived in the course of the carrying on by the company of a business in a foreign country at or through a permanent establishment of the company in that country where the amounts:

  (a)   were derived from assets belonging to the permanent establishment; and

  (b)   were derived from sources in that foreign country or from another foreign country.

23   Subsection 995 - 1(1)

Insert:

"funeral policy" means a * life insurance policy issued by a * friendly society for the sole purpose of providing benefits to pay for the funeral of the insured person.

24   Subsection 995 - 1(1) (definition of general company tax rate )

Omit "life assurance", substitute "life insurance".

25   Subsection 995 - 1(1)

Insert:

"hypothetical tax position" has the meaning given by section   45 - 615 in Schedule   1 to the Taxation Administration Act 1953 .

26   Subsection 995 - 1(1)

Insert:

"immediate annuity" means an * annuity that is presently payable.

27   Subsection 995 - 1(1)

Insert:

"income bond" means a * life insurance policy issued by a * friendly society under which bonuses are regularly distributed.

28   Subsection 995 - 1(1)

Insert:

"life insurance business" means:

  (a)   a business to the extent that it consists of issuing * life insurance policies; and

  (b)   any business that relates to a business to which paragraph   ( a) applies.

29   Subsection 995 - 1(1) (definition of life insurance entity )

Repeal the definition.

30   Subsection 995 - 1(1) (definition of life insurance policy )

Repeal the definition, substitute:

"life insurance policy" has the meaning given to the expression life policy in the Life Insurance Act 1995 but includes:

  (a)   a contract made in the course of carrying on business that is * life insurance business because of a declaration in force under section   12A or 12B of that Act; and

  (b)   a sinking fund policy within the meaning of that Act.

31   Subsection 995 - 1(1)

Insert:

"life insurance premium" includes consideration received or receivable in respect of the grant of, or the undertaking of liabilities in respect of, an * annuity.

32   Subsection 995 - 1(1) (definition of loss company )

Repeal the definition, substitute:

"loss company" :

  (a)   at a particular time, has the meaning given by section   165 - 115R or 165 - 115S; and

  (b)   in relation to a transfer of a * tax loss or a * net capital loss has the meaning given by section   170 - 10 or 170 - 110.

33   Subsection 995 - 1(1)

Insert:

"net current termination value" of a * life insurance policy means so much of the * current termination value of the policy as relates to the part of the policy that is not reinsured under a * contract of reinsurance.

34   Subsection 995 - 1(1)

"Insert:"

"net premium" for a * life insurance policy means the amount of the * life insurance premium for the policy less the part (if any) of that premium that is reinsured under a * contract of reinsurance.

35   Subsection 995 - 1(1)

Insert:

"net risk component" of a * life insurance policy means the risk component in respect of the part of the policy that has not been reinsured under a * contract of reinsurance.

36   Subsection 995 - 1(1)

Insert:

"non-resident life insurance policy" means a * life insurance policy that:

  (a)   was issued by the company in the course of carrying on a business at or through the permanent establishment of the company in the foreign country; and

  (b)   is held by an entity that is neither an * associate of the company nor a Part   X Australian resident (within the meaning of Part   X of the Income Tax Assessment Act 1936 ).

37   Subsection 995 - 1(1)

Insert:

"notional undeducted cost" of an asset means its * undeducted cost reduced by the amounts assumed under subsection 320 - 255(6) to have been deducted for depreciation.

38   Subsection 995 - 1(1)

Insert:

"ordinary class" of the taxable income of a * life insurance company has the meaning given by section   320 - 140.

39   Subsection 995 - 1(1)

Insert:

"overseas fund" has the meaning given by section   74 of the Life Insurance Act 1995 .

40   Subsection 995 - 1(1)

Insert:

"participating benefit" has the meaning given by section   15 of the Life Insurance Act 1995 .

41   Subsection 995 - 1(1)

Insert:

"policy owners' retained profits" for * life insurance policies means Australian policy owners' retained profits, or overseas policy owners' retained profits, as defined by section   61 of the Life Insurance Act 1995 , in relation to the statutory fund (within the meaning of section   29 of that Act) to which the business of issuing the policies relates.

42   Subsection 995 - 1(1)

Insert:

"quarterly instalment component" has the meaning given by section   45 - 610 in Schedule   1 to the Taxation Administration Act 1953 .

43   Subsection 995 - 1(1)

Insert:

"risk component" of a claim paid under a * life insurance policy has the meaning given by section   320 - 80.

44   Subsection 995 - 1(1)

Insert:

"RSA component" of the * complying superannuation class of the taxable income of a * life insurance company has the meaning given by section   320 - 155.

45   Subsection 995 - 1(1)

Insert:

"RSA provider" has the same meaning as in the Retirement Savings Accounts Act 1997 .

46   Subsection 995 - 1(1)

Insert:

"scholarship plan" means a * life insurance policy issued by a * friendly society for the sole purpose of providing benefits to help in the education of nominated beneficiaries.

47   Subsection 995 - 1(1)

Insert:

"segregated exempt assets" of a * life insurance company means assets from time to time segregated by the company under Subdivision   320 - H, whether segregated at the time of the initial segregation or included at a later time.

48   Subsection 995 - 1(1) (definition of SGIO )

Repeal the definition.

49   Subsection 995 - 1(1)

Insert:

"Solvency Standard" means:

  (a)   for a * life insurance company other than a * friendly society--Actuarial Standard 2.02 made by the Life Insurance Actuarial Standards Board for the purposes of section   65 of the Life Insurance Act 1995 ; or

  (b)   for a life insurance company that is a friendly society--Actuarial Standard (Friendly Societies) 2.01 made by the Life Insurance Actuarial Standards Board for the purposes of section   65 of the Life Insurance Act 1995 .

50   Subsection 995 - 1(1)

Insert:

"specified management fees" has the meaning given by subsection 320 - 40(4).

51   Subsection 995 - 1(1)

Insert:

"specified roll-over amount" of a * life insurance company means so much of an amount paid to the company as constitutes a roll - over of some or all of the untaxed element of the post - June 83 component (within the meaning of Subdivision AA of Division   2 of Part   III of the Income Tax Assessment Act 1936 ) of an * eligible termination payment.

52   Subsection 995 - 1(1)

Insert:

"specified roll-over component" of the * complying superannuation class of the taxable income of a * life insurance company has the meaning given by section   320 - 215.

53   Subsection 995 - 1(1)

Insert:

"taxable contributions" has the meaning given by Division   2 of Part   IX of the Income Tax Assessment Act 1936 .

54   Subsection 995 - 1(1)

Insert:

"tax benefit" has the meaning given by section   45 - 605 in Schedule   1 to the Taxation Administration Act 1953 .

55   Subsection 995 - 1(1)

Insert:

"tax detriment" has the meaning given by section   45 - 624 in Schedule   1 to the Taxation Administration Act 1953 .

56   Subsection 995 - 1(1)

Insert:

"tax position" has the meaning given by section   45 - 610 in Schedule   1 to the Taxation Administration Act 1953 .

57   Subsection 995 - 1(1) (definition of test period )

Repeal the definition, substitute:

"test period" has the meaning given by sections   165 - 165, 166 - 5, 166 - 20, 166 - 40 and 166 - 170.

58   Subsection 995 - 1(1) (definition of test time )

Repeal the definition, substitute:

"test time" has the meaning given by sections   58 - 10, 165 - 13, 165 - 15, 165 - 35, 165 - 40, 165 - 45, 165 - 115A, 165 - 115C, 165 - 115D, 165 - 115K, 165 - 115L, 165 - 115M, 165 - 126, 165 - 129, 165 - 132, 166 - 5, 166 - 20, 166 - 40, 166 - 80 and 166 - 85.

59   Subsection 995 - 1(1)

Insert:

"trading stock loss" has the meaning given by subsection 165 - 115A(1B).

60   Subsection 995 - 1(1)

Insert:

"transfer value" of an asset means the amount that could be expected to be received from the disposal of the asset in an open market after deducting any costs expected to be incurred in respect of the disposal.

61   Subsection 995 - 1(1) (definition of trust voting interest )

Omit "section   124 - 805", substitute "section   124 - 781".

62   Subsection 995 - 1(1)

Insert:

"ultimate holding company" of a * wholly - owned group has the meaning given by section   124 - 780.

63   Subsection 995 - 1(1)

Insert:

"Valuation Standard" means:

  (a)   for a * life insurance company other than a * friendly society--Actuarial Standard 1.02 made by the Life Insurance Actuarial Standards Board for the purposes of section   114 of the Life Insurance Act 1995 ; or

  (b)   for a life insurance company that is a friendly society--Actuarial Standard (Friendly Societies) 1.01 made by the Life Insurance Actuarial Standards Board for the purposes of section   114 of the Life Insurance Act 1995

64   Subsection 995 - 1(1)

Insert:

"value" of the liabilities of a * life insurance company under the * risk components of * life insurance policies means the value worked out under section   320 - 85.

65   Subsection 995 - 1(1)

Insert:

"variation credit component" has the meaning given by section   45 - 610 in Schedule   1 to the Taxation Administration Act 1953 .

66   Subsection 995 - 1(1)

Insert:

"variation GIC component" has the meaning given by section   45 - 610 in Schedule   1 to the Taxation Administration Act 1953 .

67   Subsection 995 - 1(1)

Insert:

"virtual pooled superannuation trust" has the meaning given by subsection 320 - 170(6).

68   Subsection 995 - 1(1)

Insert:

"virtual PST" means a * virtual pooled superannuation trust.

69   Subsection 995 - 1(1)

Insert:

"virtual PST asset" has the meaning given by subsection 320 - 170(6).

70   Subsection 995 - 1(1)

Insert:

"virtual PST component" of the * complying superannuation class of the taxable income of a * life insurance company has the meaning given by section   320 - 205.

71   Subsection 995 - 1(1)

Insert:

"virtual PST liabilities" of a * life insurance company means liabilities of the company under * life insurance policies referred to in subsection 320 - 190(1).

72   Subsection 995 - 1(1)

Insert:

"virtual PST life insurance policy" means a * life insurance policy that:

  (a)   is held by:

  (i)   the trustee of a fund that is a * complying superannuation fund or a * complying approved deposit fund; or

  (ii)   the trustee of a * pooled superannuation trust; or

  (b)   is held by an individual and:

  (i)   provides for a * deferred annuity that was purchased out of an * eligible termination payment; or

  (ii)   is so held in the benefit fund of a * friendly society, being a fund that is a regulated superannuation fund under the Superannuation Industry (Supervision) Act 1993 ; or

  (c)   is held by another life insurance company and is a * virtual PST asset of that company;

and is not an * excluded virtual PST life insurance policy.

73   Subsection 995 - 1(1)

Insert:

"whole of life policy" has the same meaning as in Part   IX of the Income Tax Assessment Act 1936 .

Notes to the New Business Tax System (Miscellaneous) Act (No. 2) 2000

Note 1

The New Business Tax System (Miscellaneous) Act (No.   2) 2000 as shown in this compilation comprises Act No.   8 9 , 200 0 amended as indicated in the Tables below.

Table of Acts

(a)   Subsection 2(1) (items   49 and 50) of the Taxation Laws Amendment Act (No.   2) 2002 provides as follows:

  (1)   Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table.

Table of Amendments