Document ID: chunk:federal_register_of_legislation:C2025C00014:section:121at:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 121AT (pt 4/5)
Character Range: 1112252–1116322

share or non‑demutualisation bonus share in the same way as they do to the disposal of such shares covered by that item.
   8 Event that would be described in item 11 of Table 1 if the references in that item to bonus shares and original shares mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section 6BA.                                                                                                                                                                                                                                         The same modifications as for item 3 of this table apply.
   9 Under demutualisation method 6, the whole of the life insurance business of a life insurance company is transferred to another company as mentioned in paragraph 121AK(1)(b).                                                                                                                                                                                                                                                                                                                                                               The other company is taken to continue to carry on the transferred life insurance business of the mutual life insurance company.
   10 An ordinary share is issued or distributed to a person in the policyholder/member group as mentioned in paragraph 121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d).                                                                                                                                                                                                                                                                                          No amount is included in, or allowable as a deduction from, assessable income of the person in respect of the issue or distribution of the share, except where the share is issued in consideration for services provided, or to be provided, by the person.
   11 Ordinary shares in the company are issued or distributed as mentioned in paragraph 121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d) to a person in the policyholder/member group who is the trustee of a superannuation fund to hold on behalf of a member of the fund. The trustee within 30 days allocates to the member, in the records of the fund, an amount representing the member's contributions in respect of the shares (the allocation shares).  If the trustee pays a superannuation benefit to the member, the tax free component (within the meaning of the Income Tax Assessment Act 1997) of the superannuation interest (within the meaning of that Act) from which the benefit is paid is increased by the amount worked out using the formula:

   12 A resolution is passed to proceed, in accordance with one of the demutualisation methods, with the demutualisation of:                                                                                                                                                                                                                                                                                                                                                                                                                     The franking surplus is reduced to nil at the beginning of the demutualisation resolution day.
     (a) a mutual insurance company that is a general insurance company; or
     (b) both such a mutual insurance company and a mutual affiliate company.
    Immediately before the demutualisation resolution day:
     (a) in the case of any demutualisation method—the general insurance company or any wholly‑owned subsidiary of the general insurance company; or
     (b) in the case of demutualisation method 7—the mutual affiliate company, a wholly‑owned subsidiary of the