Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 5/30)
Character Range: 6156872–6159753

entity cannot continue to be a *subsidiary member of a *consolidated group of which a *life insurance company is a *member if:
 (a) the life insurance company owns, either directly or indirectly through one or more interposed entities, all the *membership interests in the entity and, had the entity not been a subsidiary member of the group, either:
 (i) some, but not all, of the membership interests described in subsection (3) (the key interests) would be *complying superannuation assets of the life insurance company; or
 (ii) some, but not all, of the key interests would be *segregated exempt assets of the life insurance company; or
 (b) the life insurance company owns, either directly or indirectly through one or more interposed entities, only some of the membership interests in the entity and, had the entity not been a subsidiary member of the group, any of the key interests would be complying superannuation assets or segregated exempt assets of the life insurance company.
 (3) The key interests are the *membership interests the *life insurance company owns directly in:
 (a) the entity; or
 (b) an interposed entity.

713‑510A  Disregard single entity rule in working out certain amounts in respect of life insurance company
 (1) This section applies if a *life insurance company is a *member of a *consolidated group.
 (2) However, if the *life insurance company is a *subsidiary member of the group, this section does not apply:
 (a) for the purposes of working out the *tax cost setting amount of an asset of the life insurance company when it becomes a subsidiary member of the group; and
 (b) for the purposes of working out the tax cost setting amount of a *membership interest in the life insurance company if it ceases to be a subsidiary member of the group.
 (3) Disregard section 701‑1 (the single entity rule) in working out any of the following for the purposes of Division 320 in relation to the *life insurance company:
 (a) amounts of the *head company's ordinary income and statutory income derived from *segregated exempt assets that are not assessable income and are not *exempt income under paragraph 320‑37(1)(a);
 (b) the head company's taxable income of the *complying superannuation class (see section 320‑137);
 (c) the head company's *tax loss of the complying superannuation class (see section 320‑141);
 (d) the total *transfer value of the head company's *complying superannuation assets (see paragraph 320‑175(1)(a));
 (e) the amount of the head company's *complying superannuation liabilities (see paragraph 320‑175(1)(b));
 (f) the total transfer value of the head company's segregated exempt assets (see paragraph 320‑230(1)(a));
 (g) the amount of the head company's *exempt life insurance policy liabilities (see paragraph 320‑230(1)(b)).

Life insurance companies' liabilities on joining consolidated group

713‑511  Treatment