Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 1/165)
Character Range: 2397679–2400608

Schedule 2H—Demutualisation of mutual entities other than insurance companies and health insurers

Division 326—Demutualisation

Table of Subdivisions

Guide to Division 326
326‑A Application, key concepts and related expressions
326‑B How demutualisation is to be effected
326‑C CGT consequences of extinguishment of membership rights in mutual entity
326‑D CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company
326‑E CGT consequences of disposal of demutualisation shares or interests in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a company that is not a listed public company
326‑F Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity
326‑G CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights
326‑H CGT consequences of transfer of ordinary shares
326‑I CGT consequences of disposal of demutualisation shares or an interest in such shares by a trustee on behalf of a member
326‑J CGT consequences of change in rights attaching to special shares or replacement of special shares by ordinary shares
326‑K CGT consequences of disposal of shares or an interest in shares acquired under a roll‑over provision
326‑L CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity
326‑M Indexation
326‑N Non‑CGT consequences of issue of demutualisation shares

Guide to Division 326

326‑1  What this Division is about
      This Division sets out the taxation consequences of the demutualisation of mutual entities other than insurance companies and health insurers.

Subdivision 326‑A—Application, key concepts and related expressions

Table of sections
326‑5 Application
326‑10 Mutual entity and demutualisation
326‑15 Provisions relating to listing on a stock exchange
326‑20 Demutualisation resolutions etc.
326‑25 Demutualisation shares
326‑30 Existing members and new members
326‑35 Pre‑CGT members and post‑CGT members

326‑5  Application
 (1) This Division applies to the demutualisation of a mutual entity referred to in section 326‑10 if, and only if:
 (a) where the demutualisation resolution day was 14 March 2002 or was or is a later day—the members of the entity have passed a resolution, in accordance with the entity's constitution, that this Division is to apply to the demutualisation; and
 (b) the entity was a resident immediately before the demutualisation resolution day; and
 (c) the demutualisation has been or is implemented as mentioned in section 326‑40; and
 (d) the continuity of beneficial interest test in section 326‑60 is satisfied in relation to the