Federal Register of Legislation - Australian Government

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Act No. 128 of 1981 as amended, taking into account amendments up to Act No. 62 of 1987
An Act relating to the imposition of tax in respect of certain life insurance business having a connection with the Australian Capital Territory
Administered by: DOTARS
Start Date 01 Aug 1987
End Date 15 Mar 2007
Date of repeal 15 Mar 2007
Repealed by Repealed by Act No. 8 of 2007

Australian Capital Territory Tax (Life Insurance Business) Act 1981

Act No. 128 of 1981 as amended

[Note: This Act was repealed by Act No. 8 of 2007 on 15 March 2007]

This compilation was prepared on 23 October 2000
taking into account amendments up to Act No. 62 of 1987

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department,
Canberra

  

  

  


Contents

1............ Short title [see Note 1]....................................................................... 1

2............ Commencement [see Note 1].............................................................. 1

3............ Incorporation...................................................................................... 1

3A......... Termination of tax.............................................................................. 1

4............ Imposition of taxation........................................................................ 1

5............ Rate of tax........................................................................................... 1

6............ Exemptions and reductions of tax....................................................... 2

Notes                                                                                                                                              3


An Act relating to the imposition of tax in respect of certain life insurance business having a connection with the Australian Capital Territory

1  Short title [see Note 1]

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

2  Commencement [see Note 1]

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

3  Incorporation

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

3A  Termination of tax

                   Tax is not imposed in respect of life insurance effected on or after the termination day.

4  Imposition of taxation

                   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.

5  Rate of tax

                   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 $2,000—10 cents for each $200, or part of $200, of the sum insured; or

                             (ii)  where the sum insured exceeds $2,000—$1, and, in addition, 20 cents for each $200, or part of $200, of the amount by which the sum insured exceeds $2,000.

6  Exemptions and reductions of tax

             (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 subsection (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.


Notes to the Australian Capital Territory Tax (Life Insurance Business) Act 1981

Note 1

The Australian Capital Territory Tax (Life Insurance Business) Act 1981 as shown in this compilation comprises Act No. 128, 1981 amended as indicated in the Tables below.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Australian Capital Territory Tax (Life Insurance Business) Act 1981

128, 1981

30 Sept 1981

1 Oct 1981 (see Gazette 1981, No. S207)

 

Taxation Laws Amendment Act (No. 2) 1987

62, 1987

5 June 1987

S. 59: 1 Aug 1987 (see Gazette 1987, No. S191) (a)

S. 58


(a)     The Australian Capital Territory Tax (Life Insurance Business) Act 1981 was amended by section 59 only of the Taxation Laws Amendment Act (No. 2) 1987, subsection 2(8) of which provides as follows:

                 (8)   Part VIII shall come into operation on a day, or respective days, to be fixed by Proclamation.


Table of Amendments

ad. = added or inserted    am. = amended    rep. = repealed    rs. = repealed and substituted

Provision affected

How affected

S. 3A.................................

ad. No. 62, 1987