Commonwealth Consolidated Acts

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Application and object of this Subdivision


             (1)  This Subdivision applies if:

                     (a)  one or more entities hold * pooled interests (the reset interests ) in * eligible tier-1 companies that are members of a * MEC group, just before a particular time (the trigger time ); and

                     (b)  at the trigger time, either or both of these things happen to one or more of those eligible tier-1 companies (the trigger companies ):

                              (i)  the company ceases to be a member of the group ;

                             (ii)  a * CGT event happens in relation to one or more reset interests in the company; and

                     (c)  the * market value of the reset interests as a whole (including the market value of synergies arising from the combination of those interests) just before the trigger time is more than nil.


             (2)  The object of this Subdivision is to set the cost of all reset interests:

                     (a)  first, by allocating to each reset interest held in a trigger company so much of the total cost of all reset interests held in members of the group that the * market value of the interest bears to the group's market value; and

                     (b)  then, by allocating the remainder of that total cost to all reset interests held in other * eligible tier-1 companies, by dividing that remainder by the number of those interests.

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