Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994 - SECT 79

79. After section 113 of the Principal Act the following section is inserted:
Expenses of general management incurred in obtaining certain premiums

"113A. (1) If:

   (a)  expenditure is incurred by a life assurance company in the year of
        income in the general management of the company's business; and

   (b)  the expenditure is not an allowable deduction under section 113
        because of paragraph 113(3)(b); the expenditure is an allowable
        deduction to the extent to which it was incurred in gaining or
        producing:

   (c)  superannuation premiums to which section 111AC applies; or

   (d)  the investment component of relevant life insurance premiums to which
        section 111AD applies.

"(2) If, assuming that:

   (a)  the Taxation Laws Amendment Act 1994 had not been enacted; and

   (b)  this Act provided that a life assurance company's assessable income
        included the superannuation premiums and the investment component of
        relevant life assurance premiums received by the company; a deduction
        would not have been allowed to a life assurance company in respect of
        a loss, outgoing or expenditure or a part of a loss, outgoing or
        expenditure, then, a deduction is not allowable to the company in
        respect of the loss, outgoing or expenditure or the part of the loss,
        outgoing or expenditure, as the case may be, under this section.

"(3) For the purposes of this section, expenditure of a capital nature is
taken not to be expenditure incurred in the general management of the business
of the company.

"(4) A reference in this section to a deduction in respect of a loss, outgoing
or expenditure includes a reference to a deduction based on, or calculated by
reference to, all or a portion of the loss, outgoing or expenditure.

"(5) In this section:
'relevant life assurance premiums' means premiums received in respect of life
assurance policies other than:

   (a)  superannuation premiums; or

   (b)  premiums received in respect of exempt policies; or

   (c)  specified roll-over amounts; or

   (d)  premiums received in respect of eligible non-resident policies; or

   (e)  premiums exempt from tax under section 23AH; or

   (f)  premiums exempt from tax under paragraph 23(r).

"(6) This section applies to expenses incurred, or to deductions in respect of
a loss, outgoing or expenditure incurred, on or after 1 January 1994.".