Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 315.150

  (1)   This section applies in relation to a * CGT event if:

  (a)   the CGT event happens in relation to an asset held by the trustee of a lost policy holders trust on behalf of a lost policy holder; and

  (b)   the CGT event happens because the lost policy holder (or, if the lost policy holder has died, the * legal personal representative of the lost policy holder or a beneficiary in the estate of the lost policy holder) either:

  (i)   is transferred the asset by the trustee; or

  (ii)   becomes absolutely entitled to the asset.

Note:   The asset may be a demutualisation asset, or some other asset.

Consequence for trustee

  (2)   Disregard a * capital gain or * capital loss the trustee makes from the * CGT event.

Consequence for lost policy holder

  (3)   The * cost base of the asset in the hands of the trustee of the lost policy holders trust just before the * CGT event becomes the first element of the cost base and * reduced cost base of the asset in the hands of the lost policy holder, * legal personal representative or beneficiary.

  (4)   The lost policy holder, * legal personal representative or beneficiary is taken to have * acquired the asset when the trustee of the lost policy holders trust acquired it.