Statutory Rules 1993   No. 1891

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Occupational Superannuation Standards Regulations2 (Amendment)

I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Occupational Superannuation Standards Act 1987.

 Dated 28 June 1993.

 BILL HAYDEN

 Governor-General

 By His Excellency’s Command,

JOHN DAWKINS

Treasurer

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1.    Amendment

1.1   The Occupational Superannuation Standards Regulations are amended as set out in these Regulations.

[NOTE:  These Regulations commence on gazettal: see Acts Interpretation Act 1901, s.48.]

2.    New regulations 18BA and 18BB

2.1   After regulation 18B, insert in Division 1 of Part II:

Standards: prohibition on giving financial assistance to members or their relatives

 “18BA. (1) For the purposes of subsection 7 (1) of the Act, the standard in subregulation (2) is prescribed.

 “(2) A superannuation fund must not give any financial assistance (other than lending) using resources of the fund to:

 (a) a member of the fund; or

 (b) a relative of a member of the fund.

 “(3) In this regulation:

‘relative’ has the same meaning as in the Income Tax Assessment Act 1936.

Standards: prohibition on intentional acquisition of assets in specified circumstances

 “18BB. (1) For the purposes of subsection 7 (1) of the Act, the standards in subregulations (2) and (3) are prescribed.

 “(2) The trustees of a superannuation fund must not intentionally acquire an asset from:

 (a) a member of the fund; or

 (b) a relative of a member of the fund.

 “(3) If a person has entered into, commenced to carry out or carried out a scheme or any part of a scheme with the intention that:

 (a) the scheme would result, or be likely to result, in the acquisition of an asset by a superannuation fund, where the asset is acquired from a person who has a connection (either direct, or indirect through 1 or more interposed companies, partnerships or trusts) with:

 (i) a member of the fund; or

 (ii) a relative of a member of the fund; and

 (b) that acquisition would avoid the application of subregulation (2) to the fund;

the trustees of the fund must not intentionally:

 (c) make that acquisition; or

 (d) do any act  towards, or for the purpose of making, that acquisition.

 “(4) In this regulation:

‘relative’ has the same meaning as in the Income Tax Assessment Act 1936;

‘scheme’ means:

 (a) any agreement, arrangement, understanding, promise or undertaking:

 (i) whether express or implied; or

 (ii) whether or not enforceable, or intended to be enforceable, by legal proceedings; and

 (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.”.

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NOTES

1. Notified in the Commonwealth of Australia Gazette on  30 June 1993.

2. Statutory Rules 1987 No. 322 as amended by 1988 No. 255 (as amended by 1989 No. 281); 1989 Nos. 24, 281 and 356; 1990 Nos. 149, 150, 185, 202 and 275; 1991 Nos. 16, 58, 148, 150, 155 and 458; 1992 Nos. 192, 218, 223, 224, 387 and 463; 1993 Nos. 14, 33 and 149.