Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p6
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 6/12)
Character Range: 45385–48283

cancellation, extinguishment or redemption of an interest affected by demutualisation.

Exclusion for rights with an exercise price

 (2) Despite subsection (1), this section does not cover a right to *acquire a *share in an entity if the holder of the right must pay an amount to exercise the right.

Exclusion where assets not issued simultaneously

 (3) Despite subsection (1), a *CGT asset is not covered by this section unless all of the CGT assets covered by subsection (1) for the demutualisation are issued:
 (a) at the same time; and
 (b) to entities that are covered by section 316‑115.

316‑115  Entities to which section 316‑105 applies

 (1) This section covers an entity that:
 (a) either:
 (i) is or has been a *member of the *friendly society; or
 (ii) is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; and
 (b) is entitled under the demutualisation to an allocation of demutualisation assets.

 (2) This section also covers an entity that has become entitled to an allocation of demutualisation assets because of the death of an individual who was an entity described in subsection (1).

 (3) This section also covers the trustee of a lost policy holders trust (see section 316‑155).

Subdivision 316‑D—Lost policy holders trust

Guide to Subdivision 316‑D

316‑150  What this Subdivision is about

      If the demutualisation creates a trust just to hold shares, rights to acquire shares or money for entities that were members of the friendly society or insured through the society or its subsidiary, or are successors of such entities, then:

                (a) capital gains or losses from CGT events happening to beneficiaries' interests in the trust are disregarded, except where the capital proceeds include money; and
                (b) when a CGT event happens involving the transfer of the shares or rights to a beneficiary, or a beneficiary's absolute entitlement to them, the trustee's capital gain or loss is disregarded and the beneficiary has the same cost base and time of acquisition as the trustee; and
                (c) the trustee is assessed on any capital gains from other CGT events happening to the shares or rights.

Table of sections

Application

316‑155 Lost policy holders trust

Effects of CGT events happening to interests and assets in trust

316‑160 Disregarding beneficiaries' capital gains and losses, except some involving receipt of money
316‑165 Taking account of some capital gains and losses involving receipt of money by beneficiaries
316‑170 Roll‑over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust
316‑175 Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust
316‑180 Subdivision 126‑E does not apply

Application

316‑155  Lost policy holders trust

 (1)