Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p20
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 20/165)
Character Range: 2445469–2448134

disposing of membership rights in another mutual entity; and
 (c) the disposer is a pre‑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:
 (d) 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 both of the following amounts:
 (i) the amount worked out by using the formula:

 (ii) any amount actually paid for the acquisition; and
 (e) if the disposal is a disposal of a demutualisation original share or an interest in such a share, the disposer is taken to have done the following:
 (i) to have paid the amount referred to in subparagraph (d)(i) on the demutualisation resolution day;
 (ii) to have paid any amount referred to in subparagraph (d)(ii) when it was actually paid;
 (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 mutual entity at the time of the disposal of the membership rights in that entity.

326‑165  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 both of the following amounts:
 (i) an amount equal to the undeducted membership costs;
 (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 to have done the following:
 (i) to have paid the amount referred to in subparagraph (c)(i) on the demutualisation resolution day;
 (ii) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid;
 (iii) to have acquired the share or interest on the demutualisation resolution