Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p2
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 2/12)
Character Range: 35004–37743

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) the CGT asset is one of these (an interest affected by demutualisation):
 (i) an interest in the friendly society as the owner or holder of a policy of insurance with the friendly society or health/life insurance subsidiary;
 (ii) a *membership interest in the friendly society;
 (iii) a right or interest of another kind in the friendly society;
 (iv) a right or interest of another kind that arises under the demutualisation, except an interest in a lost policy holders trust (see section 316‑155).

Note: Subdivision 316‑D deals with the effects of CGT events happening to interests in lost policy holders trusts.

 (2) Disregard a *capital gain or *capital loss of an entity (the successor) from a *CGT event that happens under the demutualisation to a *CGT asset if:
 (a) the successor is the *legal personal representative, or beneficiary in the estate, of a deceased individual who was:
 (i) a *member of the *friendly society; or
 (ii) insured through the friendly society or a health/life insurance subsidiary of the friendly society; and
 (b) the CGT asset:
 (i) forms part of the deceased individual's estate; and
 (ii) devolves or *passes to the successor; and
 (iii) is an interest affected by demutualisation (see paragraph (1)(b)).

316‑60  Taking account of some capital gains and losses involving receipt of money

 (1) This section applies if:
 (a) a *CGT event happens under the demutualisation to an entity's interest affected by demutualisation (see section 316‑55); and
 (b) the event involves:
 (i) the variation or abrogation of rights attaching to or consisting of the interest; or
 (ii) the conversion, cancellation, extinguishment or redemption of the interest; and
 (c) either:
 (i) the entity is one described in paragraph 316‑55(1)(a); or
 (ii) the entity is one described in paragraph 316‑55(2)(a) and the interest is a *CGT asset described in paragraph 316‑55(2)(b); and
 (d) the *capital proceeds from the event include or consist of money received by the entity.

 (2) Work out whether the entity makes a *capital gain or *capital loss from the *CGT event, and the amount of the gain or loss, assuming that:
 (a) the *capital proceeds from the CGT event were the amount they would be if they did not include any *market value of property other than money; and
 (b) the *cost base and *reduced cost base for the interest were the amount worked out using the formula:

Example: Assume the entity receives $50 in money and 10 shares with a market value of $4 each in respect of CGT event C2 happening, and that the valuation factor worked