Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 315 - Demutualisation of private health insurers  

Subdivision 315-B - Cost base of certain shares and rights in private health insurers  

SECTION 315-80   Cost base and acquisition time of demutualisation assets  

Cost base adjustment

315-80(1)    
The first element of the *cost base and *reduced cost base of a *CGT asset is its *market value on the day it is issued if:

(a) the asset is covered by section 315-85 (a demutualisation asset ); and

(b) the asset is issued to an entity (a participating policy holder ) covered by section 315-90 .

Note:

There is an exception to this rule in Subdivision 315-D where the asset is a share or right in a holding company with other assets.

Acquisition rule

315-80(2)    
The participating policy holder is taken to have *acquired the demutualisation asset at the time it is issued.