Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.
(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).
Table of Subdivisions
Guide to Division 316
316 - A Application
316 - B Capital gains and losses connected with the demutualisation
316 - C Cost base of shares and rights issued under the demutualisation
316 - D Lost policy holders trust
316 - E Special CGT rules for legal personal representatives and beneficiaries
316 - F Non - CGT consequences of the demutualisation