Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p1
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 1/12)
Character Range: 32248–35245

1  At the end of Part 3‑32
Add:

Division 316—Demutualisation of friendly society health or life insurers

Table of Subdivisions

 Guide to Division 316
316‑A Application
316‑B Capital gains and losses connected with the demutualisation
316‑C Cost base of shares and rights issued under the demutualisation
316‑D Lost policy holders trust
316‑E Special CGT rules for legal personal representatives and beneficiaries
316‑F Non‑CGT consequences of the demutualisation

Guide to Division 316

316‑1  What this Division is about

      Special tax consequences follow the demutualisation of a friendly society that provides health insurance or life insurance, or has a wholly‑owned subsidiary that does.

Subdivision 316‑A—Application

Table of sections

316‑5 Application of this Division

316‑5  Application of this Division

  This Division applies in relation to a demutualisation of a *friendly society if:
 (a) the society is, or has a *wholly‑owned subsidiary (a health/life insurance subsidiary) that is:
 (i) a private health insurer as defined in the Private Health Insurance Act 2007; or
 (ii) a company registered under section 21 of the Life Insurance Act 1995; and
 (b) the society does not have capital divided into *shares held by its *members; and
 (c) after the demutualisation the society is to be carried on for the object of securing a profit or pecuniary gain for its *members.

Subdivision 316‑B—Capital gains and losses connected with the demutualisation

Guide to Subdivision 316‑B

316‑50  What this Subdivision is about

      Disregard capital gains and losses made by any entity from a CGT event happening under the demutualisation, unless the entity:

                (a) is or has been a member of the friendly society or insured through the society or any of its wholly‑owned subsidiaries; and
                (b) receives money for the event.

Table of sections

Gains and losses of members, insured entities and successors

316‑55 Disregarding capital gains and losses, except some involving receipt of money
316‑60 Taking account of some capital gains and losses involving receipt of money
316‑65 Valuation factor for sections 316‑60, 316‑105 and 316‑165
316‑70 Value of the friendly society

Friendly society's gains and losses

316‑75 Disregarding friendly society's capital gains and losses

Other entities' gains and losses

316‑80 Disregarding other entities' capital gains and losses

Gains and losses of members, insured entities and successors

316‑55  Disregarding capital gains and losses, except some involving receipt of money

 (1) Disregard an entity's *capital gain or *capital loss from a *CGT event that happens under the demutualisation to a *CGT asset if:
 (a) the entity:
 (i) is or has been a *member of the *friendly society; or
 (ii) is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; and
 (b) the CGT asset is one of these (an interest affected by demutualisation):