Document ID: chunk:federal_register_of_legislation:C2009C00311:clause:1_2:p1
Version: federal_register_of_legislation:C2009C00311
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/5)
Character Range: 5710–8581

2  After section 124‑784
Insert:

124‑784A  When arrangement is a restructure

 (1) This section applies in relation to a single *arrangement if:
 (a) the replacement entity for the arrangement knows, or could reasonably be expected to know:
 (i) that a roll‑over under section 124‑780 has been, or will be, obtained in relation to the arrangement; and
 (ii) that there is a *common stakeholder for the arrangement (disregarding subsections 124‑783(4) and (5)); and
 (b) subsection (2) is satisfied for the arrangement.

Note: If this section applies, the first element of the cost base and reduced cost base of interests in the original entity acquired under the arrangement is worked out under section 124‑784B.

 (2) This subsection is satisfied for the *arrangement if the result of step 2 is more than 80% of the result of step 3.

      Method statement
           Step 1. Add up the *market value just after the *arrangement was completed (the completion time) of all of the replacement interests issued by the replacement entity under the arrangement in exchange for the following interests (the qualifying interests):

                (a) original interests in the original entity;
                (b) any interests issued by the original entity to an acquiring entity under the arrangement in respect of other original interests in the original entity cancelled under the arrangement.

           Step 2. Add to the result of step 1 the *market value at the completion time of all of the replacement interests issued by the replacement entity under any earlier arrangement for which this section applied in exchange for qualifying interests in the original entity.
           Step 3. Add up the *market value at the completion time of all of the:

                (a) *shares *on issue by the replacement entity; and
                (b) options, rights and similar interests issued by the replacement entity that give the holder an entitlement to acquire a share in the replacement entity at or after the completion time.

Application if an entity is listed

 (3) For the purposes of:
 (a) subsection (2); and
 (b) step 5 of the method statement in subsection 124‑784B(2);
if interests in an entity are listed for quotation in the official list of an *approved stock exchange at the completion time, then the replacement entity may choose that the *market value at that time of an interest in the first‑mentioned entity is taken to be the *officially quoted price of the interest at that time.

Application if more than one original entity

 (4) If qualifying interests in more than one original entity are *acquired under the *arrangement, then, for the purposes of subsections (1) and (2):
 (a) those interests of each of those original entities are taken to have been acquired under separate arrangements; and
 (b) those separate arrangements are taken