Commonwealth Numbered Regulations

1993 No. 189 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 2

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.".