Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p49
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 49/79)
Character Range: 4961877–4964760

to beneficiary in deceased estate
 (1) This section sets out what happens if a *CGT asset:
 (a) is a demutualisation asset (see section 316‑110); and
 (b) forms part of the estate of an individual who is an entity described in subsection 316‑115(1) and has died; and
 (c) was not owned by the individual just before dying; and
 (d) *passes to a beneficiary in the individual's estate because the asset is transferred to the beneficiary by the individual's *legal personal representative.
Note: Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying.

Consequence for legal personal representative
 (2) Disregard a *capital gain or *capital loss the *legal personal representative makes because the asset *passes to the beneficiary.

Consequence for beneficiary
 (3) The *cost base and *reduced cost base of the asset in the hands of the *legal personal representative just before the asset *passes to the beneficiary becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary.
 (4) The beneficiary is taken to have *acquired the asset when the *legal personal representative acquired it.

316‑205  Interest in lost policy holders trust not owned by deceased but passing to beneficiary in deceased estate
 (1) This section sets out what happens if a *CGT asset:
 (a) is an interest in a lost policy holders trust (see section 316‑155); and
 (b) forms part of the estate of an individual who is an entity described in subsection 316‑115(1) and has died; and
 (c) was not owned by the individual just before dying; and
 (d) *passes to a beneficiary in the individual's estate because the asset is transferred to the beneficiary by the individual's *legal personal representative.
Note: Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying.

Consequence for legal personal representative
 (2) Disregard a *capital gain or *capital loss the *legal personal representative makes because the asset *passes to the beneficiary.

Subdivision 316‑F—Non‑CGT consequences of the demutualisation

Guide to Subdivision 316‑F

316‑250  What this Subdivision is about

      In many cases, income from demutualisation is assessed through the CGT provisions rather than as ordinary income or other statutory income.
      Franking debits arise for the friendly society and its subsidiaries to ensure they do not enjoy a franking surplus. Franking debits and credits arise to negate credits and debits from things attributable to the time before demutualisation.

Table of sections
316‑255 General taxation consequences of issue of demutualisation assets etc.
316‑260 Franking debits to stop the friendly society and its subsidiaries having franking surpluses
316‑265 Franking debits to negate franking credits from some distributions to friendly society