AUSTRALIAN CAPITAL TERRITORY TAX (LIFE INSURANCE BUSINESS) ACT 1981 NO. 128, 1981 

AUSTRALIAN CAPITAL TERRITORY TAX (LIFE INSURANCE BUSINESS) ACT 1981 NO. 128, 1981 
- TABLE OF PROVISIONS

1. Short title.  
2. Commencement  
3. Incorporation  
4. Imposition of taxation  
5.  Rate of Tax  
6. Exemptions and reductions of tax  

Australian Capital Territory Tax (Life Insurance Business) Act 1981 No. 128 of
1981
- SECT 1
Short title.

  Australian  Capital  Territory  Tax  (Life  Insurance  Business)  Act  1981

                               No.  128  of  1981
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-- An Act relating to the imposition of tax in respect of certain life
insurance
       business having a connection with the Australian Capital Territory

                                                 (Assented to 30 September
1981) 

  BE IT ENACTED by the Queen, and the Senate and the House of Representatives
of the Commonwealth of Australia, as follows:
Short title

  1. This Act may be cited as the Australian Capital Territory Tax (Life
Insurance Business) Act 1981.

Australian Capital Territory Tax (Life Insurance Business) Act 1981 No. 128 of
1981
- SECT 2
Commencement

  2. This Act shall come into operation on such date as is fixed by
Proclamation.

Australian Capital Territory Tax (Life Insurance Business) Act 1981 No. 128 of
1981
- SECT 3
Incorporation

  3. The Australian Capital Territory Taxation (Administration) Act 1969 is
incorporated and shall be read as one with this Act.

Australian Capital Territory Tax (Life Insurance Business) Act 1981 No. 128 of
1981
- SECT 4
Imposition of taxation

  4. Tax is imposed in respect of all life insurance effected in the Territory
after the commencement of this Act, being life insurance in respect of which
premiums are received in the Territory by the insurer after that commencement.

Australian Capital Territory Tax (Life Insurance Business) Act 1981 No. 128 of
1981
- SECT 5

Rate of Tax
  5. The rate of tax is -
     (a) in the case of life insurance of the kind known as temporary
         insurance or term insurance -
           (i) where the term of the insurance exceeds 1 year - 5% of
               the premiums in respect of the first year of that term;
               or
          (ii) where the term of the insurance does not exceed 1 year -
               5% of the premiums in respect of that term; or
     (b) in any other case -
           (i) where the sum insured exceeds $100 but does not exceed
               $2000 - 10 cents for $200, or part of $200, of the sum
               insured; or
          (ii) where the sum insured exceeds $2000 - $1, and, in
               addition, 20 cents for each $200, or part of $200, of
               the amount by which the sum insured exceeds $2000.

Australian Capital Territory Tax (Life Insurance Business) Act 1981 No. 128 of
1981
- SECT 6
Exemptions and reductions of tax
  6. (1) Tax is not imposed on life insurance -
    (a) which relates solely to the life of a person domiciled outside
        the Territory at the time the insurance is effected; and
    (b) in respect of which stamp duty or tax similar to stamp duty
        has been paid under a law of a State or Territory or the
        Commissioner of Taxation is satisfied that such a duty or tax
        will be paid.
    (2) Tax is not imposed on life insurance effected by, or relating
  to the life of, a person who is -
    (a) a member of a diplomatic mission in Australia of the government
        of another country that does not impose tax in respect of life
        insurance or on premiums received in respect of life insurance
        or grants in relation to Australia an exemption from any such
        tax corresponding to this exemption; or
    (b) a member of his family forming part of his household, being a person
who is not an Australian citizen and is not ordinarily resident in Australia.
    (3) Where a policy of life insurance relates partly to the life of a
person the insurance in relation to which is exempt from tax by virtue of
sub-section (1) and partly to the life of any other person, the tax imposed in
connection with that policy shall be reduced by such amount as, in the opinion
of the Commissioner of Taxation, is attributable to the insurance relating to
the first-mentioned life.
    (4) In this section, a reference to the life of a person includes a
reference to the lives of 2 or more persons.