Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 316.110

  (1)   This section covers a * CGT asset that:

  (a)   is:

  (i)   a * share in the * friendly society; or

  (ii)   a right to * acquire a share in the friendly society; or

  (iii)   a share in an entity that owns all of the shares in the friendly society; or

  (iv)   a right to acquire a share in an entity mentioned in subparagraph   (iii); and

  (b)   is issued under the demutualisation; and

  (c)   is issued in connection with:

  (i)   the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation (see paragraph   316 - 55(1)(b)); or

  (ii)   the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation.

Exclusion for rights with an exercise price

  (2)   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

  (3)   Despite subsection   (1), a * CGT asset is not covered by this section unless all of the CGT assets covered by subsection   (1) for the demutualisation are issued:

  (a)   at the same time; and

  (b)   to entities that are covered by section   316 - 115.