Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p17
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 17/165)
Character Range: 2437953–2440758

such a share, where member did not acquire membership rights by disposing of membership rights in another mutual entity
326‑160 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity
326‑165 Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share
326‑170 Various adjusted market values
326‑175 Undeducted membership costs

326‑135  Application of Subdivision
 (1) This Subdivision applies where a member (the disposer) of a mutual entity which, or a holding company of which, becomes a company that is not a listed public company disposes of an asset consisting of:
 (a) a demutualisation share in that company that is not a listed public company or an interest in such a share; or
 (b) other shares (non‑demutualisation bonus shares) in the same company, or an interest in such shares, where the shares are bonus equities mentioned in Subdivision 130‑A of the Income Tax Assessment Act 1997 and any of the demutualisation shares (whether or not disposed of at the time) are the original equities mentioned in that Subdivision.
 (2) For the purposes of this Subdivision, if any of the original equities mentioned in Subdivision 130‑A of the Income Tax Assessment Act 1997, is a demutualisation share, it is called a demutualisation original share.

326‑140  Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where a member did not acquire membership rights by disposing of membership rights in another mutual entity
 (1) If:
 (a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and
 (b) the disposer did not acquire membership rights in the demutualisation entity by disposing of membership rights in another mutual entity; and
 (c) the disposer is a pre‑CGT member;
then, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:
 (d) to have paid for the acquisition of the share or interest the amount worked out by using the formula:

 (e) to have paid that amount on the demutualisation resolution day;
 (f) to have acquired the share or interest on the demutualisation resolution day.
 (2) In the formula in paragraph (1)(d):
total number of shares means the total number of demutualisation shares issued.

326‑145  Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership