This is the value, during the relevant period, of all fixed and variable costs as recognised under Australian Accounting Standards incurred when acquiring new business including those related to commissions and other incremental expenses. 

Abnormal operating expenses are not to be excluded or shown separately, but included in the relevant category. Policy acquisition items are prior to any component deferred to either policy liabilities or a deferred acquisition cost asset.

Do not include amortization and impairment of existing deferred acquisition costs (DAC) recognised during the reporting period.