INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2H - DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS  

Division 326 - DEMUTUALISATION  

Subdivision 326-M - Indexation  

SECTION 326-235   INDEXATION FACTOR  

326-235(1)  
For the indexation of the amount worked out under subsection 326-120(2) or 326-170(6) in relation to a person who acquired membership rights in a demutualising entity by the disposal of membership rights in another mutual entity, the indexation factor is:


Index number for the quarter in which the
  relevant demutualisation resolution day occurred  
Index number for the quarter in which the
membership rights in the other mutual entity were
disposed of

326-235(2)  
For the indexation of an undeducted amount referred to in subsections 326-125(1) and (2) or 326-175(1) and (2) of a cost incurred by a person in acquiring or maintaining membership in a demutualising entity or another entity, the indexation factor is:


Index number for the quarter in which the
                  relevant demutualisation resolution day occurred                  
Index number for the quarter in which the cost was incurred

326-235(3)  
An indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more).


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