Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 315 - Demutualisation of private health insurers  

Subdivision 315-B - Cost base of certain shares and rights in private health insurers  

SECTION 315-85   Demutualisation asset  

315-85(1)    
This section covers an asset if:

(a) the asset is:

(i) a share in the demutualising health insurer; or

(ii) a right to *acquire a share in the demutualising health insurer; or

(iii) a share in an entity that owns all of the shares in the demutualising health insurer; or

(iv) a right to acquire a share in an entity mentioned in subparagraph (iii); and

(b) the share or right is issued under a demutualisation to which this Division applies; and

(c) the share or right is issued in connection with:

(i) the variation or abrogation of rights attaching to or consisting of a *CGT asset covered by section 315-20 ; or

(ii) the conversion, cancellation, extinguishment or redemption of such a CGT asset.

Exclusion for rights with an exercise price

315-85(2)    
Despite subsection (1), this section does not cover a right to *acquire a share in an entity if the holder of the right must pay an amount to exercise the right.

Exclusion where assets not issued simultaneously

315-85(3)    
Despite subsection (1), an asset is not covered by this section unless all of the assets covered by subsection (1) for the demutualisation in question are issued:

(a) at the same time; and

(b) to an entity that is either:

(i) a participating policy holder (see section 315-90 ); or

(ii) the trustee of a trust covered by Subdivision 315-C (about the lost policy holders trust).