Income Tax Assessment Act 1997



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  

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

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

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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