Taxation Laws Amendment Act (No. 6) 2001 (169 of 2001)

Schedule 5   HIH rescue package

Part 1   Income tax consequences

Income Tax Assessment Act 1997

6   After Division 320

Insert:

Division 322 - HIH rescue package

Guide to Division 322

322-1 What this Division is about

This Division sets out special measures to assist in the rescue package provided in response to the collapse of the HIH group.

Table of sections

Operative provisions

322-5 Rescue payments treated as insurance payments by HIH

322-10 HIH Trust exempt from tax

322-15 Certain capital gains and capital losses disregarded

[This is the end of the Guide.]

Operative provisions

322-5 Rescue payments treated as insurance payments by HIH

(1) This Act applies to you as if a payment you receive from the Commonwealth, the *HIH Trust or a prescribed entity for assignment of your rights under or in relation to a *general insurance policy you held with an *HIH company:

(a) had been made by the HIH company; and

(b) had been made under the terms and conditions of the general insurance policy you held with the HIH company.

(2) The HIH Trust is the HIH Claims Support Trust (established on 6 July 2001).

(3) An HIH company is:

(a) CIC Insurance Limited; or

(b) FAI General Insurance Company Limited; or

(c) FAI Reinsurances Pty Limited; or

(d) FAI Traders Insurance Company Pty Limited; or

(e) HIH Casualty and General Insurance Limited; or

(f) HIH Underwriting and Insurance (Australia) Pty Limited; or

(g) World Marine and General Insurances Pty Limited; or

(h) another related company specified in writing by the Commissioner.

322-10 HIH Trust exempt from tax

The total *ordinary income and *statutory income of:

(a) the HIH Trust; and

(b) an entity prescribed for the purposes of this Division;

is exempt from income tax.

322-15 Certain capital gains and capital losses disregarded

A *capital gain or *capital loss you make because you assign a right under or in relation to a *general insurance policy you held with an *HIH company to the Commonwealth, the trustee of the *HIH Trust or a prescribed entity is disregarded.

[The next Part is Part 3-45.]