"average calculated liabilities (eligible non-resident policies)" means the
average calculated liabilities of the company for the year of income for
eligible non-resident policies that:
- (a)
- are included in the fund; and
- (b)
- were issued in the course of carrying on the PE business.
5 Subsection 114(1)
Omit all the words before paragraph (a), substitute:
If an actuarial valuation of liabilities of a life assurance company is made
as at a particular time, the company's calculated liabilities at that time
are:
6 Subsection 114(2)
Repeal the subsection, substitute:
- (2)
- If:
- (a)
- it is necessary to work out a life assurance company's calculated
liabilities as at a particular time (the relevant time ); and
- (b)
- no actuarial valuation of liabilities of the company as at the relevant
time is made;
the calculated liabilities at that time are the amount worked out by using the
formula:
where:
"current value of assets" means the value of all the
company's assets at the relevant time.
"previous actuarial valuation of liabilities" means the last actuarial
valuation of liabilities of the company made before the relevant time.
"previous value of assets" means the value of all the company's assets when
the last actuarial valuation of liabilities of the company before the relevant
time was made.
7 After section 114
Insert:
114A Average calculated liabilities for category
of policies
- (1)
- The average calculated liabilities of a life assurance
company for a category of policies for a year of income is worked out under
this section.
- (2)
- First, divide the year of income into periods as follows:
- (a)
- the first
period starts at the start of the year of income;
- (b)
- each later period starts immediately after the last day of the previous
period;
- (c)
- each period (except the last) ends immediately before the first day on
which a significant event occurs in relation to the insurance fund in which
policies of the category are included;
- (d)
- the last period ends at the end of the year of income.
- (3)
- Second, the average calculated liabilities of the company for the category
of policies for each period is the amount worked out by using the formula:
where:
"calculated liabilities (end of period)" means the calculated
liabilities of the company for the category of policies at the end of the
period.
"calculated liabilities (start of period) "means the calculated liabilities of
the company for the category of policies:
- (a)
- if the period is the first period—at the start of the period; or
- (b)
- otherwise—on the day after the occurrence of the significant event
that caused the immediately preceding period to end.
"days in period" means the number of days in the period.
"days in year of income" means the number of days in the year of income.
- (4)
- Third, the average calculated liabilities of the company for the category
of policies for the year of income is the sum of the amounts of the average
calculated liabilities of the company for the category of policies for all the
periods into which the year of income is divided.
114B Total average calculated liabilities
The total average calculated liabilities of a life assurance company for a
year of income is the sum of the average calculated liabilities of the company
for each category of policies for the year of income.
8 Subsection 116CB(2)
Omit all the words after "formula:", substitute:
where:
"average
calculated liabilities (all non-exempt resident policies)" means the average
calculated liabilities of the company for the year of income for policies of
all categories (other than exempt policies or eligible non-resident policies)
included in the fund in which the asset was included immediately before
disposal.
"average calculated liabilities (category of policies)" means the average
calculated liabilities of the company for the year of income for policies of
the category concerned that are included in the fund in which the asset was
included immediately before disposal.
"core amount" means the core amount.
9 Subsection 116CE(5)
Omit all the words after "formula:", substitute:
where:
"average calculated liabilities (all non-exempt resident policies)"
means the average calculated liabilities of the company for the year of income
for policies of all categories (other than exempt policies or eligible
non-resident policies) included in the fund.
"average calculated liabilities (category of policies)" means the average
calculated liabilities of the company for the year of income for policies of
the category concerned that are included in the fund.
"income" means the amount of the assessable income to be allocated.
10 Application
(1) The amendments made by this Schedule apply to a life
assurance company in respect of the first year of income starting on or after
29 April 1997 and all later years of income.
(2) The amendments made by this
Schedule also apply to a life assurance company in respect of the year of
income that immediately preceded the first year of income referred to in
subsection (1) if, and only if:
- (a)
- that immediately preceding year of
income ended on or after 29 April 1997; and
- (b)
- a significant event in relation to any of the insurance funds maintained
by the company occurred during the part of that year of income occurring on
and after that date.
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Commonwealth Numbered Acts
