1   Event described in item   1 of Table 1.

No amount is included in, or allowable as a deduction from, assessable income in respect of the extinguishment.

2   Event described in item   3 or 4 of Table 1.

1.   If the disposal takes place before the demutualisation listing day (see note 4 to Table 1):

(a)   no loss is allowable as a deduction from the disposer's assessable income in respect of the disposal; and

(b)   any deduction allowable from the disposer's assessable income in respect of the acquisition of the right or interest does not exceed the amount included in the disposer's assessable income in respect of the disposal.

2.   Paragraphs 2(a) and (b) of the modifications column for item   3 or 4 in Table 1 apply for the purposes of working out:

(a)   the amount of any profit included in the disposer's assessable income in respect of the disposal; or

(b)   the amount of any deduction allowable from the disposer's assessable income in respect of the acquisition of the right or interest.

3   Event that would be described in item   5 of Table 1 if the references in that item to bonus shares and original shares mentioned in section   130 - 20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section   6BA.

1.   If the disposal is of a demutualisation share, or interest in such a share, and the disposal takes place before the demutualisation listing day:

(a)   no loss is allowable as a deduction from the disposer's assessable income in respect of the disposal; and

(b)   any deduction allowable from the disposer's assessable income in respect of the acquisition of the share or interest does not exceed the amount included in the disposer's assessable income in respect of the disposal.

2.   If the disposal is of a demutualisation share (other than a demutualisation original share), or an interest in such a share, then paragraphs 2(a) to (c) of the modifications column for item   5 in Table 1 apply for the purposes of working out:

(a)   the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer's assessable income in respect of the disposal; or

(b)   the amount of any deduction allowable (where modification 1 does not apply) from the disposer's assessable income in respect of the acquisition of the share or interest

3.   If the disposal is of either:

(a)   a demutualisation original share, or an interest in such a share; or

(b)   a non - demutualisation bonus share, or an interest in such a share;

  then paragraphs 3(c) and (d) of the modifications column for item   5 in Table 1 apply for the purpose of working out:

(c)   the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer's assessable income in respect of the disposal; or

(d)   the amount of any deduction allowable (where modification 1 does not apply) from the disposer's assessable income in respect of the acquisition of the share or interest.

  In applying paragraph   3(c) of the modifications column for item   5 in Table 1, the reference to section   130 - 20 (about bonus shares) of the Income Tax Assessment Act 1997 is taken instead to be a reference to section   6BA.

4   Event that would be described in item   6 of Table 1 if the references in that item to bonus shares and original shares mentioned in section   130 - 20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section   6BA.

1.   If the disposal is of a demutualisation share, or interest in such a share, and the disposal takes place before the demutualisation listing day:

(a)   no loss is allowable as a deduction from the disposer's assessable income in respect of the disposal; and

(b)   any deduction allowable from the disposer's assessable income in respect of the acquisition of the share or interest does not exceed the amount included in the disposer's assessable income in respect of the disposal.

2.   If the disposal is of a demutualisation share (other than a demutualisation original share), or an interest in such a share, then paragraphs 2(a) to (c) of the modifications column for item   6 in Table 1 apply for the purposes of working out:

(a)   the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer's assessable income in respect of the disposal; or

(b)   the amount of any deduction allowable (where modification 1 does not apply) from the disposer's assessable income in respect of the acquisition of the share or interest.

3.   If the disposal is of either:

(a)   a demutualisation original share, or interest in such a share; or

(b)   a non - demutualisation bonus share, or an interest in such a share;

then paragraphs 3(c) and (d) of the modifications column for item   6 in Table 1 apply for the purpose of working out:

(c)   the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer's assessable income in respect of the disposal; or

(d)   the amount of any deduction allowable (where modification 1 does not apply) from the disposer's assessable income in respect of the acquisition of the share or interest.

  In applying paragraph   3(c) of the modifications column for item   6 in Table 1, the reference to section   130 - 20 (about bonus shares) of the Income Tax Assessment Act 1997 is taken instead to be a reference to section   6BA.

5   Event that would be described in item   7 of Table 1 if the references in that item to bonus shares and original shares mentioned in section   130 - 20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section   6BA.

The same modifications as for item   3 of this table apply.

6   Event described in item   8 of Table 1.

No amount is included in, or allowable as a deduction from, assessable income in respect of the change in the rights.

7   Event that would be described in item   9 of Table 1 if the references in that item to bonus shares and original shares mentioned in section   130 - 20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section   6BA.

1.   The person in the policyholder/member group, instead of the trustee is taken:

(a)   to have sold the demutualisation share or non - demutualisation bonus share; and

(b)   to have paid, given and received any consideration that was paid, given or received by the trustee in respect of either share; and

(c)   to have done any other act in relation to either share that was done by the trustee.

2.   The modifications in item   3 of this table apply to the sale of the demutualisation share or non - demutualisation bonus share in the same way as they do to the disposal of such shares covered by that item.

8   Event that would be described in item   11 of Table 1 if the references in that item to bonus shares and original shares mentioned in section   130 - 20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section   6BA.

The same modifications as for item   3 of this table apply.

9   Under demutualisation method 6, the whole of the life insurance business of a life insurance company is transferred to another company as mentioned in paragraph   121AK(1)(b).

The other company is taken to continue to carry on the transferred life insurance business of the mutual life insurance company.

10   An ordinary share is issued or distributed to a person in the policyholder/member group as mentioned in paragraph   121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d).

No amount is included in, or allowable as a deduction from, assessable income of the person in respect of the issue or distribution of the share, except where the share is issued in consideration for services provided, or to be provided, by the person.

11   Ordinary shares in the company are issued or distributed as mentioned in paragraph   121AF(1)(b), 121AG(1)(c) or (d), 121AH(1)(c), 121AI(1)(e) or (f), 121AJ(1)(c) or (d), 121AK(1)(c) or (d) or 121AL(1)(c) or (d) to a person in the policyholder/member group who is the trustee of a superannuation fund to hold on behalf of a member of the fund. The trustee within 30 days allocates to the member, in the records of the fund, an amount representing the member's contributions in respect of the shares (the allocation shares ).

If the trustee pays a superannuation benefit to the member, the tax free component (within the meaning of the Income Tax Assessment Act 1997 ) of the superannuation interest (within the meaning of that Act) from which the benefit is paid is increased by the amount worked out using the formula:

12   A resolution is passed to proceed, in accordance with one of the demutualisation methods, with the demutualisation of:

(a)   a mutual insurance company that is a general insurance company; or

(b)   both such a mutual insurance company and a mutual affiliate company.

The franking surplus is reduced to nil at the beginning of the demutualisation resolution day.

  Immediately before the demutualisation resolution day:

(a)   in the case of any demutualisation method--the general insurance company or any wholly - owned subsidiary of the general insurance company; or

(b)   in the case of demutualisation method 7--the mutual affiliate company, a wholly - owned subsidiary of the mutual affiliate company, or a company all of whose shares are beneficially owned by the general insurance company and the mutual affiliate company;

  has a franking surplus.

13   A resolution is passed to proceed with the demutualisation of a mutual insurance company or both a mutual insurance company and a mutual affiliate company. A dividend that was declared before the demutualisation resolution day is paid on or after the demutualisation resolution day to:

(a)   in the case of any demutualisation method--the mutual insurance company or any wholly - owned subsidiary of the mutual insurance company; or

(b)   in the case of demutualisation method 7--the mutual affiliate company, a wholly - owned subsidiary of the mutual affiliate company, or a company all of whose shares are beneficially owned by the general insurance company and the mutual affiliate company.

No franking credit arises for the company or the subsidiary in relation to the payment of the dividend on or after the demutualisation resolution day.