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-C - Lost policy holders trust  

SECTION 315-145   CGT treatment of demutualisation assets in lost policy holders trust  

Cost base adjustment

315-145(1)    
The first element of the *cost base and *reduced cost base of a demutualisation asset issued to the trustee of a lost policy holders trust is its *market value on the day it is issued.

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

315-145(2)    
The trustee is taken to have *acquired the demutualisation asset at the time it is issued.