Exemption for an interest in a foreign general insurance company

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This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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An exemption is provided to an Australian resident for shares in a publicly listed general insurance company where the following requirements are satisfied.

• Approved stock exchange

Shares you hold in the company must be of a class listed on any stock market of a stock exchange approved in Schedule 3 of the Act. See appendix 1 Approved stock exchanges for more information.

• Trading requirement

The class of shares you hold in the company must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange during the period in which the exemption applies.

• Authorised to carry on general insurance business

The general insurance company must be authorised under the law of its place of residence to carry on general insurance business. This requirement ensures that the company meets regulatory requirements for general insurance businesses in its country of residence.

• Principally engaged in general insurance business

An additional requirement is that the general insurance company is principally engaged in the active carrying on of general insurance business during the period in which the exemption applies. [SECTION 509]

Exemption for an interest in a foreign holding company of a foreign general insurance company

A company will qualify for the exemption from the FIF measures as a holding company of a general insurance company if the following requirements are satisfied.

• Approved stock exchange

The shares you have in the holding company must be of a class listed on any stock market of a stock exchange approved in Schedule 3 of the Act. See appendix 1 Approved stock exchanges for more information.

• Designated a general insurance company

The holding company is included in a class of companies designated as engaged in general insurance on either:

• an approved stock exchange, or
• an approved international sectoral classification system. See appendix 3 Approved international sectoral classification systems for more information.
• Trading requirement
  • The class of shares you have in the holding company must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange.
  • If the holding company has only one subsidiary, that subsidiary must be wholly owned and be principally engaged in the active carrying on of general insurance business.
  • If the holding company has more than one subsidiary, each subsidiary must be wholly owned and the principal activities of the wholly owned subsidiaries in the group, taken together as an economic unit, must be the active carrying on of general insurance business.
  • The subsidiary or, where there is a group of subsidiaries, at least one of the wholly owned subsidiaries must be authorised under the law of its place of residence to carry on general insurance business. [SECTION 509A]