Document ID: chunk:federal_register_of_legislation:C2008A00097:clause:1_11:p4
Version: federal_register_of_legislation:C2008A00097
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 4/8)
Character Range: 16108–18957

or
 (ii) the conversion, cancellation, extinguishment or redemption of such a CGT asset.

Exclusion for rights with an exercise price

 (2) Despite subsection (1), this section does not cover a right to *acquire a share in an entity if the holder of the right must pay an amount to exercise the right.

Exclusion where assets not issued simultaneously

 (3) Despite subsection (1), an asset is not covered by this section unless all of the assets covered by subsection (1) for the demutualisation in question are issued:
 (a) at the same time; and
 (b) to an entity that is either:
 (i) a participating policy holder (see section 315‑90); or
 (ii) the trustee of a trust covered by Subdivision 315‑C (about the lost policy holders trust).

315‑90  Participating policy holders

 (1) This section covers an individual who:
 (a) is, or has been, a policy holder (within the meaning of the Private Health Insurance Act 2007) of, or another person insured through, the demutualising health insurer; and
 (b) is entitled, under the demutualisation, to an allocation of demutualisation assets.

 (2) This section also covers an entity who became entitled to an allocation of demutualisation assets because of the death of an individual mentioned in subsection (1).

Subdivision 315‑C—Lost policy holders trust

Table of sections

315‑140 Lost policy holders trust
315‑145 CGT treatment of demutualisation assets in lost policy holders trust
315‑150 Roll‑over where assets transferred to lost policy holder
315‑155 Trustee assessed if assets dealt with not for benefit of lost policy holder
315‑160 Subdivision 126‑E does not apply to lost policy holders trust

315‑140  Lost policy holders trust

  This Subdivision covers a trust (a lost policy holders trust) in relation to a demutualisation to which this Division applies if:
 (a) the conversion scheme mentioned in paragraph 126‑42(2)(b) of the Private Health Insurance Act 2007 for the demutualisation provides for the trust; and
 (b) under the demutualisation, demutualisation assets (see section 315‑85) are issued to the trustee of the trust; and
 (c) the trust exists solely for the purpose of holding shares or rights to *acquire shares on behalf of:
 (i) individuals (lost policy holders) who are, or have been, policy holders (within the meaning of the Private Health Insurance Act 2007) of, or other persons insured through, the demutualising health insurer; or
 (ii) if the lost policy holder has died—the *legal personal representative of the lost policy holder or a beneficiary in the estate of the lost policy holder.

Example: An example of an individual on whose behalf the trust might hold assets would be an individual who has not completed a formal step required for them to be issued with demutualisation assets directly. Another example might be an individual living overseas.