Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 121AB

  (1)   A mutual insurance company is an insurance company:

  (a)   whose profits are divisible only among its policyholders; or

  (b)   that satisfies all of the following conditions:

  (i)   it is limited by guarantee;

  (ii)   it did not divide its profits among its members during the 10 years ending on 9   May 1995;

  (iii)   on a winding - up, its profits are not divisible among its members; or

  (c)   that satisfies all of the following conditions:

  (i)   at 7.30 pm, by legal time in the Australian Capital Territory, on 9   May 1995, it was a friendly society (within the meaning of this Act as in force at that time);

  (ii)   it was an insurance company on 1   July 1999;

  (iii)   it does not have capital divided into shares held by its members; or

  (d)   if the insurance company is a mutual entity (within the meaning of the Corporations Act 2001 )--that would be covered by paragraph   (a), (b) or (c) if the following were disregarded:

  (i)   any MCIs (within the meaning of that Act) issued by the entity;

  (ii)   any dividends or profits paid or payable in respect of such MCIs;

  (iii)   any members of the entity who are members by virtue of holding such MCIs.

  (2)   An insurance company is a life insurance company or a general insurance company.

  (3)   A life insurance company is a company registered under section   21 of the Life Insurance Act 1995 .

  (4)   A general insurance company is a company whose sole or principal business is insurance business within the meaning of subsection   3(1) of the Insurance Act 1973 , but does not include a life insurance company.