The ATO has provided an information factsheet and a short Q&A for holders of private health insurance with MBF.
This information is relevant for holders of a private health insurance policy with MBF on 8 November 2007 who receive a payment of cash under the demutualisation of MBF that was proposed to take place on 16 June 2008.
The Tax Office is currently working out the correct capital gains tax amount (if any) that will apply to this payment.
The Tax Office has agreed to allow persons to lodge their 2007/08 tax return without including any capital gain on this payment at this stage.
The Tax Office and MBF will let taxpayers know what amount (if any) to include in their tax return and how to do this at a later time.

Click here to read the full factsheet.