Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p12
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 12/165)
Character Range: 2425509–2428213

another mutual entity
 (1) If:
 (a) the disposal is a disposal of either:
 (i) a demutualisation original share or an interest in such a share; or
 (ii) a non‑demutualisation bonus share or an interest in such a share; and
 (b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and
 (c) the disposer is a pre‑CGT member; and
 (d) the disposal occurs before the demutualisation listing day;
then, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:
 (e) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be the amount worked out by using the formula:

 (f) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken:
 (i) to have paid the amount referred to in paragraph (e) on the demutualisation resolution day; and
 (ii) to have acquired the share or interest on the demutualisation resolution day.
 (2) In the formula in paragraph (1)(e):
number of disposer's shares means the number of demutualisation original shares issued to the disposer or in which the disposer had an interest.
total number of shares means the total number of demutualisation shares issued.

326‑105  Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
 (1) If:
 (a) the disposal is a disposal of either:
 (i) a demutualisation original share or an interest in such a share; or
 (ii) a non‑demutualisation bonus share or an interest in such a share; and
 (b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and
 (c) the disposer is a pre‑CGT member; and
 (d) the disposal occurs on or after the demutualisation listing day;
then, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the following paragraphs have effect:
 (e) for the purpose of applying Subdivision 130‑A of the Income Tax Assessment Act 1997, the amount paid for the acquisition of all the demutualisation original shares that is to be taken into account under that Division or Subdivision, as the case may be, is taken to be the lesser