Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p3
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 3/9)
Character Range: 690238–692955

713‑500 Object of Subdivision
713‑505 When this Subdivision applies (first case)
713‑510 When this Subdivision applies (second case)
713‑515 Entities must choose the relief
713‑520 Conditions
713‑525 Time of transfer
713‑530 What the relief is
713‑535 Subsequent consequences
713‑540 Requirement to notify happening of new event
713‑545 Discount capital gain in certain cases

713‑500  Object of Subdivision
  The object of this Subdivision is to give an opportunity to a group of entities that includes a life insurance company to rearrange the assets of the group for the purposes of one or more of them becoming members of a consolidated group in a way that does not attract any immediate taxation consequences.

713‑505  When this Subdivision applies (first case)
 (1) This Subdivision provides for a deferral of the taxation consequences that would occur because of an event (the deferral event) happening involving an entity (the originating entity) and another entity (the recipient entity) if:
 (a) the event occurs in connection with a life insurance company (the member life insurance company) becoming a member of a consolidated group; and
 (b) the relevant conditions in section 713‑520 are met.
 (2) If the originating entity is a company, the deferral event referred to in subsection (1) is a CGT event referred to in subsection (4) happening to a CGT asset (the original asset) where, apart from this Subdivision, the happening of the event would have resulted in:
 (a) an amount (other than a capital gain) being included in the originating entity's assessable income; or
 (b) the originating entity making a capital gain.
 (3) If the originating entity is a trust, the deferral event referred to in subsection (1) is a CGT event referred to in subsection (4) happening to a CGT asset (also the original asset) where, apart from this Subdivision, the happening of the event would have resulted in:
 (a) an amount (other than a capital gain) being included in the net income of the trust; or
 (b) the trustee making a capital gain.
 (4) The CGT events are:
 (a) CGT events A1, B1, D1, D2, D3, E2, F1 and F2; and
 (b) CGT event C2, but only if the CGT asset that ends is a unit in a unit trust that is replaced by an equivalent membership interest (the replacement interest) in a company or in another trust.

713‑510  When this Subdivision applies (second case)
 (1) This Subdivision also provides for a deferral of the taxation consequences that would occur if:
 (a) a life insurance company transfers an asset (also the original asset) to its virtual PST or from its virtual PST where, apart from this Subdivision, section 320‑200 of the Income Tax Assessment Act 1997 would apply to the transfer; or