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Wednesday, 20 May 1942

Mr CHIFLEY (Macquarie) (Treasurer) .- I move-

That in paragraph (b ) the words " any person", proposed new paragraph (f) of subsection (4.), be left out with a view to insert in lieu thereof the following words: - ", or to any person in trust for. the widow, widower, children, grand-children, parents, brothers, sisters, nephews or nieces of the deceased ".

That in paragraph (6) the word "and" (second occurring) be left out.

That after paragraph (6) the following new paragraph be inserted: - " (ba) by inserting after sub-section (4.) the following subsection : - (4a.) Where a policy of assurance on the life of the deceased was in existence at the commencement of paragraph (f) of the last preceding sub-section, in ascertaining the money payable under that policy for the purposes of that paragraph there shall be deducted from the money actually payable an amount equal to the amount which, if invested at the date of that commencement and accumulated at three per centum per annum compound interest with yearly rests, would have produced, as at the date of death, an amount equal to the money actually payable.'".

The first amendment gives effect to the decision of the committee to limit the durability of money payable on a policy of assurance on the life of the deceased, to the money so payable to the family and close relatives of the deceased. The committee considered that the limitation is necessary because it is not uncommon to find policies of assurance payable to strangers to cover interests which those strangers have in the life of the deceased. Creditors or partners, for instance, have an interest in the life of a person, and seek to protect that interest by taking out a policy of assurance upon his life. The second amendment is merely incidental to the previous and the subsequent one. The third amendment gives effect to the opinion of the committee that the application of the provision in the bill to life assurance policies should not retrospectively apply to policies of assurance taken out before the commencement of the act. It was considered that where such arrangements had been made under the law as it existed at that time, it would be inequitable to upset them by now taking what might be a substantial portion of the policy moneys in duty. It was therefore decided to exempt from the application of the section the present value of such policies. This is done by allowing a deduction from the actual proceeds of the policy at the date of death of an amount which is calculated to represent the value of the policy at the date of the commencement of this bill.

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