Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p33
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 33/79)
Character Range: 4920801–4923902

units
420‑62 Primary producer registered emissions units
Subdivision 420‑E—Exclusivity of Division
420‑65 Exclusivity of deductions etc.
420‑70 Exclusivity of assessable income etc.

Chapter 3—Specialist liability rules

Part 3‑32—Co‑operatives and mutual entities

Division 315—Demutualisation of private health insurers

Table of Subdivisions
 Guide to Division 315
315‑A Capital gains and losses connected with a demutualisation of a private health insurer to be disregarded
315‑B Cost base of certain shares and rights in private health insurers
315‑C Lost policy holders trust
315‑D Special cost base rules for certain shares and rights in holding companies
315‑E Special CGT rule for legal personal representatives and beneficiaries
315‑F Non‑CGT consequences of demutualisation

Guide to Division 315

315‑1  What this Division is about

      This Division sets out the taxation consequences of the demutualisation of private health insurers.
      Policy holders, demutualising health insurers and certain other entities can disregard capital gains and losses arising under a demutualisation (see Subdivision 315‑A).
      Shares and rights issued under the demutualisation are given a cost base based on the market value of the demutualising health insurer at the time of issue (see Subdivisions 315‑B and 315‑D).
      Assets held by a lost policy holders trust are given roll‑over relief if transferred to the lost policy holder, or if the lost policy holder becomes absolutely entitled to them. Otherwise the trustee of the lost policy holders trust is taxed on any capital gains (see Subdivision 315‑C).
      A legal personal representative can disregard capital gains and losses made when passing an asset to a beneficiary of a policy holder's estate (see Subdivision 315‑E).
      Shares, rights or cash received under a demutualisation are not assessable income and not exempt income (see Subdivision 315‑F).

Subdivision 315‑A—Capital gains and losses connected with a demutualisation of a private health insurer to be disregarded

Table of sections

Rules for policy holders
315‑5 Policy holders to disregard capital gains and losses related to demutualisation of private health insurer
315‑10 Effect on the legal personal representative or beneficiary
315‑15 Demutualisations to which this Division applies
315‑20 What assets are covered

Rules for demutualising health insurer
315‑25 Demutualising health insurers to disregard capital gains and losses related to demutualisation

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

Rules for policy holders

315‑5  Policy holders to disregard capital gains and losses related to demutualisation of private health insurer
  Disregard a *capital gain or *capital loss of an individual from a *CGT event that happens in relation to a *CGT asset if:
 (a) the CGT event happens under a demutualisation to which this Division applies; and
 (b) the individual is, or has been, a policy holder (within the meaning of the Private Health Insurance (Prudential Supervision) Act