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]
Exemption for an interest in a foreign company engaged in certain activities connected with real property
A specific exemption is provided for an interest consisting of shares in a publicly listed company whose activities are connected with commercial real property where the following requirements are satisfied.
- Approved stock exchange
You hold shares in the company of a class listed on any stock market of a stock exchange approved in regulation 152N, Schedule 12 of the Regulations. See appendix 1 Approved stock exchanges for more information.
- Trading requirement
The class of shares you hold in the foreign 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. [SECTION 511]
Foreign company principally engaged in real property activities
The company must be principally engaged in the active carrying on of one or more activities connected with real property. This requires that the foreign company be principally engaged in one or more of the specified activities, which are:
- construction
- development of real property through capital improvement
- receipt of rental income from commercial real property owned by the foreign company where the management, maintenance and security services for the commercial property are principally provided by directors or employees of the foreign company or by a wholly owned subsidiary that is principally engaged in providing those services through its directors and employees
- provision of management services through directors or employees of the foreign company
- acting as agent for the sale or purchase of commercial real property. [SUBPARAGRAPH 511(b)(ii)]
Exemption for an interest in a foreign holding company of a foreign real property company
A company will qualify for the exemption from the FIF measures as a holding company of a real property company if the following requirements are satisfied.
- Approved stock exchange
You hold shares in the holding company of a class listed on any stock market of a stock exchange approved in regulation 152N, Schedule 12 of the Regulations. See appendix 1 Approved stock exchanges for more information.
- Designated a real property company
The holding company is included in a class of companies designated as engaged in one or more of the activities mentioned above 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 one or more of the activities mentioned above that are connected with real property.
- 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 one or more of the activities mentioned above. [SECTION 511A]