Document ID: chunk:federal_register_of_legislation:C2008A00097:clause:1_11:p6
Version: federal_register_of_legislation:C2008A00097
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 6/8)
Character Range: 21096–23754

the CGT event.

 (2) If this section applies:
 (a) for the purposes of sections 97, 98A and 100 of the Income Tax Assessment Act 1936, the share of the net income of the trust that is attributable to the *capital gain is taken not to be included in the assessable income of a beneficiary of the trust; and
 (b) the trustee is not assessed, and is not liable to pay tax, in respect of the share under section 98 of the Income Tax Assessment Act 1936.

Note: Because of these consequences in relation to sections 97 and 98 of the Income Tax Assessment Act 1936, the trustee will be assessed on the beneficiary's share under section 99A of that Act.

315‑160  Subdivision 126‑E does not apply to lost policy holders trust

  Subdivision 126‑E does not apply in relation to a demutualisation to which this Division applies.

Subdivision 315‑D—Special cost base rules for certain shares and rights in holding companies

Table of sections

315‑210 Cost base for shares and rights in certain holding companies

315‑210  Cost base for shares and rights in certain holding companies

 (1) This section applies in relation to a *CGT asset that is a demutualisation asset if:
 (a) the demutualisation asset is:
 (i) a share in an entity mentioned in subparagraph 315‑85(1)(a)(iii); or
 (ii) a right to *acquire a share in an entity mentioned in that subparagraph; and
 (b) the entity owns other assets in addition to the shares in the demutualising health insurer; and
 (c) the share or right is issued to a participating policy holder or the trustee of a lost policy holders trust.
This section applies despite sections 315‑80 and 315‑145.

Cost base adjustment

 (2) The first element of the *cost base and *reduced cost base of the *CGT asset is worked out under the method statement.

      Method statement
           Step 1. Start with the *market value of the demutualising health insurer on the day the asset is issued.
           Step 2. Divide the result of step 1 by the sum of:

                (a) the number of shares in the entity that are issued under the demutualisation; and
                (b) the number of shares in the entity that can be *acquired under rights that are demutualisation assets issued under the demutualisation.

           Step 3. The result of step 2 is the first element of the *cost base and *reduced cost base of the asset, unless the asset is a right.
           Step 4. If the asset is a right, multiply the result of step 2 by the number of shares that can be *acquired under the right. The result is the first element of the *cost base and *reduced cost base of the asset.
Example: Wellbeing Health demutualises on 1