Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 9AA - Demutualisation of insurance companies and affiliates  

Subdivision B - Key concepts and related definitions  

SECTION 121AB   INSURANCE COMPANY DEFINITIONS  

121AB(1)    
A mutual insurance company is an insurance company:

(a) whose profits are divisible only among its policyholders; or

(b) that satisfies all of the following conditions:

(i) it is limited by guarantee;

(ii) it did not divide its profits among its members during the 10 years ending on 9 May 1995;

(iii) on a winding-up, its profits are not divisible among its members; or

(c) that satisfies all of the following conditions:

(i) at 7.30 pm, by legal time in the Australian Capital Territory, on 9 May 1995, it was a friendly society (within the meaning of this Act as in force at that time);

(ii) it was an insurance company on 1 July 1999;

(iii) it does not have capital divided into shares held by its members; or

(d) if the insurance company is a mutual entity (within the meaning of the Corporations Act 2001 ) - that would be covered by paragraph (a), (b) or (c) if the following were disregarded:

(i) any MCIs (within the meaning of that Act) issued by the entity;

(ii) any dividends or profits paid or payable in respect of such MCIs;

(iii) any members of the entity who are members by virtue of holding such MCIs.

121AB(2)    
An insurance company is a life insurance company or a general insurance company.

121AB(3)    

A life insurance company is a company registered under section 21 of the Life Insurance Act 1995 .

121AB(4)    
A general insurance company is a company whose sole or principal business is insurance business within the meaning of subsection 3(1) of the Insurance Act 1973 , but does not include a life insurance company.