Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:6_25:p1
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 6 cl 25 (pt 1/10)
Character Range: 72759–75518

25  Sections 713‑525 and 713‑530
Repeal the sections, substitute:

713‑525  Obligation to value certain assets and liabilities at joining time

  Division 320 has effect as if the time when a *life insurance company becomes a *subsidiary member of a *consolidated group were a *valuation time for the purposes of sections 320‑175 and 320‑230.

Note: This means that there must be a valuation of the virtual PST assets and virtual PST liabilities under section 320‑175 (with the consequences set out in section 320‑180), and a valuation of the segregated exempt assets and exempt life insurance policy liabilities under section 320‑230 (with the consequences set out in section 320‑235), as at that time.

Losses of life insurance companies joining consolidated group

713‑530  Treatment of certain losses of life insurance company

 (1) This section applies if:
 (a) a *life insurance company becomes a *member of a *consolidated group at a time (the joining time); and
 (b) just before the joining time, the life insurance company had either:
 (i) a *tax loss of the *complying superannuation class; or
 (ii) a *net capital loss from *virtual PST assets.

 (2) This Act operates (except so far as the contrary intention appears) for the purposes of income years ending after the joining time as if:
 (a) the *head company of the *consolidated group had made the loss for the income year in which the joining time occurs; and
 (b) the *life insurance company had not made the loss for the income year for which it made the loss.

 (3) The *head company is not prevented from *utilising the loss for the income year in which the joining time occurs merely because this Act operates as if the head company had made the loss for that year.

 (4) Division 707 does not apply in relation to the *net capital loss or the *tax loss at the joining time.

Losses of life insurance companies' subsidiaries joining consolidated group

713‑535  Losses of entities whose membership interests are virtual PST assets of life insurance company

 (1) This section applies if:
 (a) a *life insurance company becomes a *member of a *consolidated group at a time (the joining time); and
 (b) at the joining time, the life insurance company owns, either directly or indirectly through one or more interposed entities, all the *membership interests in yet another entity (the life insurance subsidiary) that becomes a *subsidiary member of the group at that time; and
 (c) all the following membership interests are *virtual PST assets of the life insurance company:
 (i) the membership interests (if any) that the life insurance company owns directly in the life insurance subsidiary;
 (ii) the membership interests (if any) that the life insurance company owns directly in the