Friday, November 16, 2018
The Australian Government is consulting on the tax implications of a new accounting standard for insurance contracts.
The new accounting standard, known as AASB17, will apply mandatorily for annual reporting periods beginning on or after January 1, 2021. The consultation will inform the Government's decision as to whether any changes need to be made to the tax law as a result of the move to the new standard.
The Government is also seeking comments on two other insurance taxation issues that relate to the operation of the current provisions. It would like to know whether the tax law for health insurers should be codified rather than relying on the ordinary principles, and whether the tax law should specify how to calculate outstanding claims liabilities for general insurance companies.
The consultation will close on January 31, 2019.