Superannuation Industry (Supervision) Act 1993

PART 8 - IN-HOUSE ASSET RULES APPLYING TO REGULATED SUPERANNUATION FUNDS  

Division 1 - Object and interpretation  

Subdivision D - Transitional arrangements in relation to in-house assets  

SECTION 71C   EXCEPTIONS - TRANSITION PERIOD  

71C(1)   Investments and loans.  

If:

(a) at any time (the pre - 1 July 2001 time ) during the period after the test time but before 1 July 2001, an asset of a superannuation fund consists of a loan or an investment made during the transition period, other than under a contract entered into before the beginning of that period; and

(b) if the asset had been an asset of the fund immediately before the test time - the asset would not have been an in-house asset of the fund; and

(c) apart from this section, the asset would be an in-house asset of the fund at the pre-1 July 2001 time;

the asset is not an in-house asset of the fund at the pre-1 July 2001 time. For this purpose, a loan or an investment is not made during the transition period merely because a contract is entered into during that period for the purpose of gaining interest, income, profit or gain.

71C(2)   Leases and lease arrangements.  

If:

(a) at any time (the pre - 1 July 2001 time ) during the period after the test time but before 1 July 2001, an asset of a superannuation fund consists of an asset subject to a lease, or a lease arrangement, between a trustee of the fund and a related party of the fund; and

(b) section 71B does not apply to the asset at the pre-1 July 2001 time; and

(c) the asset became subject to a lease or lease arrangement between a trustee of the fund and a related party at a time (the transition time ) during the transition period; and

(d) the asset was subject to a lease or a lease arrangement, or any uninterrupted sequence of leases and lease arrangements, between a trustee of the fund and a related party, throughout the period beginning at the transition time and ending at the pre-1 July 2001 time; and

(e) apart from this section, the asset would be an in-house asset of the fund at the post-test time;

the asset is not an in-house asset of the fund at the pre-1 July 2001 time.