Income Tax Assessment Act 1997
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Hide history noteSECTION 316-255 General taxation consequences of issue of demutualisation assets etc. 316-255(1)
An amount of *ordinary income or *statutory income (other than a *net capital gain) of an entity covered by subsection (2) is not assessable income and is not *exempt income if:
(a) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a demutualisation asset (see section 316-110 ) was issued to the entity; or
(b) the amount is a payment made to the entity, under the demutualisation, in connection with:
(i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation (see paragraph 316-55(1)(b) ); or
(ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation; or
(c) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a *share or a right to *acquire one or more shares was transferred to the entity by the trustee of a lost policy holders trust (see section 316-155 ); or
(d) the amount is a payment made to the entity from a lost policy holders trust in connection with:
(i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation; or
(ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation.
316-255(2)
This subsection covers an entity that:
(a) is or has been a *member of the *friendly society; or
(b) is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; or
(c) is issued with the demutualisation asset, or receives the payment, because of the death of a person covered by paragraph (a) or (b); or
(d) is a beneficiary of a lost policy holders trust (see section 316-155 ).
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