Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 713 - Rules for particular kinds of entities  

Subdivision 713-L - Life insurance companies  

General modifications for life insurance companies

SECTION 713-510   Certain subsidiaries of life insurance companies cannot be members of consolidated group  

713-510(1)    

An entity cannot be a ^* subsidiary member of a ^* consolidated group or ^* consolidatable group of which a ^* life insurance company is a ^* member if:

(a) the life insurance company owns, either directly or indirectly through one or more interposed entities, all the ^* membership interests in the entity and either:

(i) some, but not all, of the membership interests described in subsection (3) (the key interests ) are ^* complying superannuation assets of the life insurance company; or

(ii) some, but not all, of the key interests are ^* segregated exempt assets of the life insurance company; or

(b) the life insurance company owns, either directly or indirectly through one or more interposed entities, only some of the membership interests in the entity and any of the key interests are complying superannuation assets or segregated exempt assets of the life insurance company.

Note:

The entity could, however, be a member of another consolidated group or consolidatable group.

713-510(2)    
An entity cannot continue to be a ^* subsidiary member of a ^* consolidated group of which a ^* life insurance company is a ^* member if:

(a) the life insurance company owns, either directly or indirectly through one or more interposed entities, all the ^* membership interests in the entity and, had the entity not been a subsidiary member of the group, either:

(i) some, but not all, of the membership interests described in subsection (3) (the key interests ) would be ^* complying superannuation assets of the life insurance company; or

(ii) some, but not all, of the key interests would be ^* segregated exempt assets of the life insurance company; or

(b) the life insurance company owns, either directly or indirectly through one or more interposed entities, only some of the membership interests in the entity and, had the entity not been a subsidiary member of the group, any of the key interests would be complying superannuation assets or segregated exempt assets of the life insurance company.

713-510(3)    
The key interests are the ^* membership interests the ^* life insurance company owns directly in:

(a) the entity; or

(b) an interposed entity.