Superannuation Industry (Supervision) Act 1993

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

Division 5 - Anti-avoidance  

SECTION 85   PROHIBITION OF AVOIDANCE SCHEMES  

85(1)   Prohibition.  

A person must not enter into, commence to carry out, or carry out, a scheme if the person entered into, commenced to carry out, or carried out the scheme or any part of the scheme with the intention that:

(a) the scheme would result, or be likely to result, in an artificial reduction in the market value ratio of the fund ' s in-house assets; and

(b) that artificial reduction would avoid the application of any provision of this Part to the fund.

85(2)   Civil penalty provision.  

Subsection (1) is a civil penalty provision as defined by section 193 , and Part 21 therefore provides for civil and criminal consequences of contravening, or being involved in a contravention of, that subsection.

85(3)   Validity of transaction not affected by contravention of subsection (1).  

A contravention of subsection (1) does not affect the validity of a transaction.

85(4)   Scheme.  

In this section:

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.