Document ID: chunk:federal_register_of_legislation:C2008A00097:clause:1_11:p3
Version: federal_register_of_legislation:C2008A00097
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 3/8)
Character Range: 13586–16348

this Division applies; and
 (b) the entity is the demutualising health insurer.

Rules for other entities

315‑30  Other entities to disregard capital gains and losses related to demutualisation

  Disregard a *capital gain or *capital loss of an entity from a *CGT event if:
 (a) the entity is established solely for the purpose of participating in a demutualisation to which this Division applies; and
 (b) the entity is not a trust covered by Subdivision 315‑C (about lost policy holders); and
 (c) the CGT event:
 (i) happened under a demutualisation to which this Division applies; and
 (ii) happened before or at the same time as the allocation or distribution (in the form of shares or cash) of the accumulated surplus of the demutualising health insurer; and
 (iii) was connected to that allocation or distribution.

Note: The allocation or distribution of the accumulated surplus could happen through an arrangement involving more than one transaction.

Subdivision 315‑B—Cost base of certain shares and rights in private health insurers

Table of sections

315‑80 Cost base and acquisition time of demutualisation assets
315‑85 Demutualisation asset
315‑90 Participating policy holders

315‑80  Cost base and acquisition time of demutualisation assets

Cost base adjustment

 (1) The first element of the *cost base and *reduced cost base of a *CGT asset is its *market value on the day it is issued if:
 (a) the asset is covered by section 315‑85 (a demutualisation asset); and
 (b) the asset is issued to an entity (a participating policy holder) covered by section 315‑90.

Note: There is an exception to this rule in Subdivision 315‑D where the asset is a share or right in a holding company with other assets.

Acquisition rule

 (2) The participating policy holder is taken to have *acquired the demutualisation asset at the time it is issued.

315‑85  Demutualisation asset

 (1) This section covers an asset if:
 (a) the asset is:
 (i) a share in the demutualising health insurer; or
 (ii) a right to *acquire a share in the demutualising health insurer; or
 (iii) a share in an entity that owns all of the shares in the demutualising health insurer; or
 (iv) a right to acquire a share in an entity mentioned in subparagraph (iii); and
 (b) the share or right is issued under a demutualisation to which this Division applies; and
 (c) the share or right is issued in connection with:
 (i) the variation or abrogation of rights attaching to or consisting of a *CGT asset covered by section 315‑20; or
 (ii) the conversion, cancellation, extinguishment or redemption of such a CGT asset.

Exclusion for rights with an exercise price

 (2) Despite subsection (1), this section does not cover a right to *acquire a share in an entity if the