Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p47
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 47/79)
Character Range: 4957019–4959665

a health/life insurance subsidiary of the friendly society; and
 (b) a *legal personal representative, or beneficiary in the estate, of such a person who has died.

Second condition
 (5) The second condition is that, under the demutualisation, the trustee of the lost policy holders trust is:
 (a) issued with demutualisation assets that are *shares, or rights to *acquire shares; or
 (b) paid money described in paragraph (3)(b) to hold and pay to beneficiaries of the 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
  Disregard a *capital gain or *capital loss of a beneficiary of the lost policy holders trust from a *CGT event that happens to the beneficiary's interest in the trust.

316‑165  Taking account of some capital gains and losses involving receipt of money by beneficiaries
 (1) This section applies if:
 (a) a *CGT event happens to an interest of a beneficiary of the lost policy holders trust in that trust; and
 (b) the *capital proceeds from the event include or consist of money received by the beneficiary.
 (2) Work out whether the beneficiary 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 that the beneficiary of the lost policy holders trust is paid $50 in money by the trustee to satisfy the beneficiary's interest in the trust so that a CGT event happens, and that the valuation factor worked out under section 316‑65 is 0.9. The beneficiary makes a capital gain from the event of $5, worked out as follows:
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 sections 316‑55 and 316‑160.
Note: The capital gain is not a discount capital gain: see section 115‑55.

316‑170  Roll‑over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust
 (1) This section applies in relation to a *CGT event if:
 (a) the CGT event happens in relation to an asset that:
 (i) is a *share or a right to *acquire one or more shares; and
 (ii) is held by the trustee of the lost policy holders trust on behalf of a beneficiary of the lost