Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p11
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 11/12)
Character Range: 58122–60962

an entity covered by subsection (2) is not assessable income and is not *exempt income if:
 (a) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a demutualisation asset (see section 316‑110) was issued to the entity; or
 (b) the amount is a payment made to the entity, under the demutualisation, in connection with:
 (i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation (see paragraph 316‑55(1)(b)); or
 (ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation; or
 (c) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a *share or a right to *acquire one or more shares was transferred to the entity by the trustee of a lost policy holders trust (see section 316‑155); or
 (d) the amount is a payment made to the entity from a lost policy holders trust in connection with:
 (i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation; or
 (ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation.

 (2) This subsection covers an entity that:
 (a) is or has been a *member of the *friendly society; or
 (b) is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; or
 (c) is issued with the demutualisation asset, or receives the payment, because of the death of a person covered by paragraph (a) or (b); or
 (d) is a beneficiary of a lost policy holders trust (see section 316‑155).

316‑260  Franking debits to stop the friendly society and its subsidiaries having franking surpluses

 (1) A *franking debit arises in the *franking account of the *friendly society or a *wholly‑owned subsidiary of the society if the account is in *surplus immediately before the demutualisation resolution day identified under subsection 316‑70(4).

 (2) The amount of the *franking debit equals the *surplus.

 (3) The *franking debit arises at the start of that day.

316‑265  Franking debits to negate franking credits from some distributions to friendly society and subsidiaries

 (1) This section applies if a *franking credit arises in the *franking account of the *friendly society or a *wholly‑owned subsidiary of the society because a *distribution declared before the demutualisation resolution day identified under subsection 316‑70(4) is made to the society or subsidiary on or after that day.

 (2) A *franking debit arises in that account.

 (3) The amount of the *franking debit equals the amount of the *franking credit.

 (4) The *franking debit arises at the same time as the *franking credit arises.

316‑270  Franking debits to negate franking