Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p26
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 26/165)
Character Range: 2460004–2462608

entity are extinguished; and
 (ii) shares in the demutualised entity are issued to a trustee; and
 (b) as a result of the extinguishment of the rights, the member acquires an interest in the trust constituted by the right to have shares in the demutualised entity held by the trustee transferred by the trustee to the member or disposed of by the trustee on behalf of the member; and
 (c) the member disposes of the whole or a part of the interest otherwise than by receiving the shares or proceeds of the sale of the shares.
 (2) For the purpose of working out whether the member made a capital gain or capital loss from the disposal, the member is taken to have done the following:
 (a) to have paid for the acquisition of the interest in the trust the amount worked out by using the formula:

 (b) to have paid that amount, and to have acquired the interest, on the demutualisation resolution day.
 (3) In the formula in paragraph (2)(a):
cost of a share means the amount that would have been taken to have been paid by the member for the acquisition of a share in the demutualised entity under Subdivisions 326‑D, 326‑E and 326‑F if the disposal had been the disposal of the shares to which the interest or the part of the interest in the trust related.
number of shares means the number of shares in the demutualised entity to which the interest in the trust related.
 (4) If the member is a pre‑CGT member who did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity, any capital loss made from the disposal before the demutualisation listing day, or, if there is no such day, before the day on which the shares in the demutualised entity were issued, is to be disregarded.

Subdivision 326‑H—CGT consequences of transfer of ordinary shares

Table of sections
326‑205 Transfer of share or distribution of proceeds of sale of share not to have any CGT consequences

326‑205  Transfer of share or distribution of proceeds of sale of share not to have any CGT consequences
  If a trustee transfers an ordinary share or distributes the proceeds of the sale of an ordinary share as mentioned in subparagraph 326‑55(1)(h)(ii), Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by or arising from the transfer or distribution.

Subdivision 326‑I—CGT consequences of disposal of demutualisation shares or an interest in such shares by a trustee on behalf of a member

Table of sections
326‑210 Disposal by a trustee

326‑210  Disposal by a trustee
  If:
 (a) under the distributing