Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p3
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 3/12)
Character Range: 37519–40336

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 out under section 316‑65 is 0.9. The entity makes a capital gain from the event of $5, worked out as follows:

 This ignores the market value of the shares because they are property other than money.

Note: Division 114 (Indexation of cost base) is not relevant, because this section provides exhaustively for working out the amount of the cost base.

 (3) The *capital gain or *capital loss is not to be disregarded, despite:
 (a) section 316‑55; and
 (b) any provision of this Act for disregarding the *capital gain or *capital loss because the interest affected by demutualisation was *acquired before 20 September 1985.

Note: The capital gain is not a discount capital gain: see section 115‑55.

316‑65  Valuation factor for sections 316‑60, 316‑105 and 316‑165

 (1) For the purposes of sections 316‑60, 316‑105 and 316‑165, the valuation factor is the amount worked out using the formula:
where:

embedded value of the friendly society's other business (if any) means the amount that would be the value of the *friendly society worked out under section 316‑70 assuming that neither the friendly society, nor any health/life insurance subsidiary of it, *carried on any health insurance business within the meaning of the Private Health Insurance Act 2007.

market value of the friendly society's health insurance business (if any) means the total *market value of every health insurance business, within the meaning of the Private Health Insurance Act 2007, *carried on by either or both of the *friendly society and its health/life insurance subsidiaries (if any), taking account of any consideration paid to the society or subsidiary for disposal or control of that business.

 (2) Disregard paragraph 316‑60(2)(a) for the purposes of the formula in subsection (1) of this section.

316‑70  Value of the friendly society

 (1) The value of the *friendly society is the sum, worked out in accordance with this section, of the friendly society's existing business value and its adjusted net worth on the day (the applicable accounting day) identified under subsection (3).

Eligible actuary and Australian actuarial practice

 (2) The sum is to be worked out, according to Australian actuarial practice, by an *actuary who is not an employee of:
 (a) the *friendly society; or
 (b) a health/life insurance subsidiary of the friendly society; or
 (c) an entity of which the friendly society is to become a *wholly‑owned subsidiary under the demutualisation.

Applicable accounting day

 (3) The applicable accounting day is:
 (a) if an accounting period of the *friendly society ends