Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 316.155

  (1)   This Subdivision applies if the conditions in subsections   (2) and (5) are met.

First condition

  (2)   The first condition is that, under the demutualisation, a trust (the lost policy holders trust ) exists solely for one or both of the purposes that are described in subsection   (3) in relation to persons ( beneficiaries of the lost policy holders trust ) covered by subsection   (4).

  (3)   The purposes are as follows:

  (a)   holding demutualisation assets (see section   316 - 110) that are * shares or rights to * acquire shares, or proceeds from disposal of those assets, on behalf of one or more beneficiaries of the lost policy holders trust and transferring those assets or proceeds to those beneficiaries;

  (b)   holding on behalf of one or more beneficiaries of the lost policy holders trust, and paying to them, money payable to them for:

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

  (ii)   the conversion, cancellation, extinguishment or redemption of those interests.

  (4)   This subsection covers:

  (a)   a person who is or has been a * member of the friendly society or is or has been insured through the * friendly society or a health/life insurance subsidiary of the friendly society; and

  (b)   a * legal personal representative, or beneficiary in the estate, of such a person who has died.

Second condition

  (5)   The second condition is that, under the demutualisation, the trustee of the lost policy holders trust is:

  (a)   issued with demutualisation assets that are * shares, or rights to * acquire shares; or

  (b)   paid money described in paragraph   (3)(b) to hold and pay to beneficiaries of the lost policy holders trust.