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 315-85   Demutualisation asset  

315-85(1)  
This section covers an asset if:


(a) the asset is:


(i) a share in the demutualising health insurer; or

(ii) a right to *acquire a share in the demutualising health insurer; or

(iii) a share in an entity that owns all of the shares in the demutualising health insurer; or

(iv) a right to acquire a share in an entity mentioned in subparagraph (iii); and


(b) the share or right is issued under a demutualisation to which this Division applies; and


(c) the share or right is issued in connection with:


(i) the variation or abrogation of rights attaching to or consisting of a *CGT asset covered by section 315-20 ; or

(ii) the conversion, cancellation, extinguishment or redemption of such a CGT asset.
Exclusion for rights with an exercise price

315-85(2)  
Despite subsection (1), this section does not cover a right to *acquire a share in an entity if the holder of the right must pay an amount to exercise the right. Exclusion where assets not issued simultaneously

315-85(3)  
Despite subsection (1), an asset is not covered by this section unless all of the assets covered by subsection (1) for the demutualisation in question are issued:


(a) at the same time; and


(b) to an entity that is either:


(i) a participating policy holder (see section 315-90 ); or

(ii) the trustee of a trust covered by Subdivision 315-C (about the lost policy holders trust).

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