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-F - Non-CGT consequences of demutualisation  

SECTION 315-310   General taxation consequences of issue of demutualisation assets etc.  

315-310(1)  
An amount of *ordinary income or *statutory income of an entity to which subsection (2) applies is not assessable and not *exempt income if:


(a) the amount would otherwise be included in the ordinary income or statutory income of the entity only because a demutualisation asset was issued to the entity; or


(b) the amount is a payment made to the entity, under a demutualisation to which this Division applies, 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.

315-310(2)  
This subsection applies to an entity that:


(a) is, or has been, a policy holder (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 ) of, or another person insured through, the demutualising health insurer; or


(b) is issued with the demutualisation asset, or receives the payment, because of the death of a policy holder mentioned in paragraph (a).


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