Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p23
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 23/165)
Character Range: 2452897–2455554

undeducted amount of that cost is a reference to the undeducted amount as indexed under Subdivision 326‑M.

Subdivision 326‑F—Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity

Table of sections
326‑180 Amount taken to be paid for acquisition of shares or interest by member to be increased by capital gain or reduced by capital loss

326‑180  Amount taken to be paid for acquisition of shares or interest by member to be increased by capital gain or reduced by capital loss
 (1) This section applies if:
 (a) a post‑CGT member of a mutual entity that has been demutualised acquired membership rights in the entity by the disposal of membership rights in another mutual entity; and
 (b) the member made a capital gain or capital loss from the disposal of membership rights in the other mutual entity; and
 (c) the member has acquired shares or an interest in shares in the demutualised entity or in a company that holds shares in the demutualised entity.
 (2) If the member disposes of a demutualisation original share or a non‑demutualisation bonus share, the amount paid for the acquisition of all the demutualisation original shares is taken to be increased by the amount of the capital gain or reduced by the amount of the capital loss, as the case may be.
 (3) If subsection (2) does not apply, the amount that is taken, under Subdivision 326‑D or 326‑E, to have been paid by the member for the acquisition of the share or interest is taken to be increased by the proportionate part of the amount of the capital gain or reduced by the proportionate part of the amount of the capital loss, as the case may be.

Subdivision 326‑G—CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights

Table of sections
326‑185 Disposal of right to receive shares in demutualised entity
326‑190 Extinguishment of right to shares in demutualised entity by the issue of the shares
326‑195 Disposal of right to receive shares in holding company
326‑200 Disposal of interest in trust that holds shares in demutualised entity

326‑185  Disposal of right to receive shares in demutualised entity
 (1) This section applies if:
 (a) under the direct method of demutualisation, or the combined direct and holding company method of demutualisation, of a mutual entity, the membership rights of an existing member of the entity are extinguished; and
 (b) as a result of the extinguishment of the rights, the member acquires a right or an interest in a right to have shares in the