(1) This section applies if:
(a) an asset (other than money) is transferred from a * complying superannuation asset pool under subsection 320-180(1) or 320-195(2) or (3); or
(b) an asset (other than money) is transferred to a complying superannuation asset pool under subsection 320-180(3) or section 320-185.
(2) In determining:
(a) for the purposes of this Act (other than Parts 3-1 and 3-3) whether an amount is included in, or can be deducted from, the assessable income of a * life insurance company in respect of the transfer of the asset; or
(b) for the purposes of Parts 3-1 and 3-3:
(i) whether the company made a * capital gain in respect of the transfer of the asset; or
(ii) whether the company made a * capital loss in respect of the transfer of the asset;
the company is taken:
(c) to have sold, immediately before the transfer, the asset transferred for a consideration equal to its * market value; and
(d) to have purchased the asset again at the time of the transfer for a consideration equal to its market value.
(2A) Without limiting subsection (2), where the asset transferred is a * depreciating asset, Division 40 has effect for the company as if:
(a) in relation to the sale of the asset that is taken to have occurred under paragraph (2)(c):
(i) the sale were a * balancing adjustment event; and
(ii) the * termination value of the asset for that event were equal to the consideration for the sale under that paragraph; and
(iii) the company had stopped * holding the asset at the time of the sale; and
(b) in relation to the purchase of the asset that is taken to have occurred under paragraph (2)(d):
(i) the company had only begun to hold the asset after the purchase; and
(ii) the first element of the asset's * cost were equal to the consideration for the purchase under that paragraph; and
(iii) the company had acquired the asset from an * associate of the company.
Note: This means that, amongst other things, as a result of the transfer:
* the asset's cost for the purposes of working out a deduction under Division 40 is reset; and
* the company's assessable income might be adjusted under section 40- 285.
(3) If, apart from this subsection and section 320- 55, a * life insurance company could deduct an amount or make a * capital loss as a result of a transfer of an asset to or from its * complying superannuation asset pool, the deduction or capital loss is disregarded until:
(a) the asset ceases to exist; or
(b) the asset, or a greater than 50% interest in it, is * acquired by an entity other than an entity that is an * associate of the company immediately after the transfer.
(4) Subsection (3) does not apply in relation to an amount that the company can deduct under a provision in Division 40.
Guide to Subdivision 320-H