Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p14
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 14/165)
Character Range: 2430444–2433168

and
 (iii) to have acquired the share or interest on the demutualisation resolution day.
 (2) In the formula in subparagraph (1)(d)(i):
number of members means the total number of members of the other entity at the time of the disposal of the membership rights in that entity.

326‑115  Disposal by post‑CGT member of a demutualisation original share or a non‑demutualisation bonus share or an interest in such a share
  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 is a post‑CGT member;
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:
 (c) 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 sum of:
 (i) an amount equal to the undeducted membership costs; and
 (ii) any amount actually paid for the acquisition;
 (d) 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 subparagraph (c)(i) on the demutualisation resolution day; and
 (ii) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid; and
 (iii) to have acquired the share or interest on the demutualisation resolution day.

326‑120  Adjusted market value

Where membership rights not acquired by disposal of rights in another entity
 (1) For the purposes of this Subdivision, the adjusted market value, when the expression is used in relation to a disposer who did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity, is the market value, as determined by a qualified valuer, of the demutualising entity on the demutualisation resolution day. However, in making the determination the valuer is to disregard the franking surplus of that entity on that day.

Where membership rights acquired by disposal of rights in another entity
 (2) For the purposes of this Subdivision but subject to subsection (3), the adjusted market value, when the expression is used in relation to a disposer who acquired membership rights in the demutualising entity by disposing of membership rights in another mutual entity, is the market value, as determined by a qualified valuer, of the other entity at the time immediately before the disposer disposed of membership rights in the