10Insertion of new section

10 Insertion of new section

After section 116HA of the Principal Act the following section is inserted:

116HAA Deductions to be allowable for expenditure incurred in gaining the investment component of certain premiums

Premiums to which section applies (1) This section applies to premiums received in respect of life assurance policies other than:

(a) superannuation premiums; or

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

(c) specified roll-over amounts; or

(d) premiums exempt from tax under section 23AH.

Assumption to be made in determining allowable deductions (2) For the purposes of determining the deductions allowable to a registered organization, the investment component of a premium to which this section applies is to be treated as assessable income. Actuary’s certificate (3) This section does not apply to premiums derived by a registered organization in a year of income unless the organization obtains a certificate by an authorised actuary with respect to the operation of this section. The certificate must be in a form approved in writing by the Commissioner. The organization must obtain the certificate:

(a) before the date of lodgment of the organization’s return of income of the year of income; or

(b) within such further time as the Commissioner allows.

Definition (4) In this section:

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