Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p46
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 46/79)
Character Range: 4954371–4957277

money for entities that were members of the friendly society or insured through the society or its subsidiary, or are successors of such entities, then:

                (a) capital gains or losses from CGT events happening to beneficiaries' interests in the trust are disregarded, except where the capital proceeds include money; and
                (b) when a CGT event happens involving the transfer of the shares or rights to a beneficiary, or a beneficiary's absolute entitlement to them, the trustee's capital gain or loss is disregarded and the beneficiary has the same cost base and time of acquisition as the trustee; and
                (c) the trustee is assessed on any capital gains from other CGT events happening to the shares or rights.

Table of sections

Application
316‑155 Lost policy holders trust

Effects of CGT events happening to interests and assets in trust
316‑160 Disregarding beneficiaries' capital gains and losses, except some involving receipt of money
316‑165 Taking account of some capital gains and losses involving receipt of money by beneficiaries
316‑170 Roll‑over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust
316‑175 Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust
316‑180 Subdivision 126‑E does not apply

Application

316‑155  Lost policy holders trust
 (1) This Subdivision applies if the conditions in subsections (2) and (5) are met.

First condition
 (2) The first condition is that, under the demutualisation, a trust (the lost policy holders trust) exists solely for one or both of the purposes that are described in subsection (3) in relation to persons (beneficiaries of the lost policy holders trust) covered by subsection (4).
 (3) The purposes are as follows:
 (a) holding demutualisation assets (see section 316‑110) that are *shares or rights to *acquire shares, or proceeds from disposal of those assets, on behalf of one or more beneficiaries of the lost policy holders trust and transferring those assets or proceeds to those beneficiaries;
 (b) holding on behalf of one or more beneficiaries of the lost policy holders trust, and paying to them, money payable to them for:
 (i) the variation or abrogation of rights attaching to or consisting of the beneficiaries' interests affected by demutualisation (see paragraph 316‑55(1)(b)); or
 (ii) the conversion, cancellation, extinguishment or redemption of those interests.
 (4) This subsection covers:
 (a) a person who is or has been a *member of the friendly society or is or has been insured through the *friendly society or a health/life insurance subsidiary of the friendly society; and
 (b) a *legal personal representative, or beneficiary in the estate, of such a person who has died.

Second condition
 (5) The second condition is that, under the demutualisation, the trustee of