Superannuation Industry (Supervision) Act 1993

PART 7 - PROVISIONS APPLYING ONLY TO REGULATED SUPERANNUATION FUNDS

SECTION 65 LENDING TO MEMBERS OF REGULATED SUPERANNUATION FUND PROHIBITED

65(1) Prohibition.

View history reference

A trustee or an investment manager of a regulated superannuation fund must not:

(a) lend money of the fund to:

(i) a member of the fund; or

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

(b) give any other financial assistance using the resources of the fund to:

(i) a member of the fund; or

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

Note:

Section 166 imposes an administrative penalty for a contravention of subsection (1) by a trustee in relation to a self managed superannuation fund.

View history note

65(2) Exception - private sector funds.

Subsection (1) does not prohibit the lending of money of a private sector fund established before 16 December 1985 to a member if the trustee of the fund, on or before that date:

(a) had express power to lend money to members; or

(b) lent money to members and that lending was not expressly prohibited by the governing rules of the fund.

65(3) Exception - public sector funds.

Subsection (1) does not prohibit the lending of money of a public sector fund established before 25 May 1988 to a member if the trustee of the fund, on or before that date:

(a) had express power to lend money to members; or

(b) lent money to members and that lending was not expressly prohibited by the governing rules of the fund.

65(4) Variation of governing rules.

If:

(a) subsection (2) or (3) applies to a regulated superannuation fund; and

(b) at the beginning of the fund ' s 1994-95 year of income, a provision included in the governing rules of the fund authorised the lending of the fund ' s money to members;

a variation of that provision is void unless the variation:

(c) limits the power to lend the fund ' s money to members; or

(d) removes the power to lend the fund ' s money to members.

65(5) 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 of being involved in a contravention of, that subsection.

65(6)
(Repealed by No 134 of 2008)

View history note

History

S 65(6) repealed by No 134 of 2008, s 3 and Sch 4 item 14, effective 1 July 2008. No 134 of 2008, s 3 and Sch 4 item 16 contains the following application provision:

Application of amendments of the Superannuation Industry (Supervision) Act 1993
16(1)
Subject to subitems (2) and (3), the amendments of the Superannuation Industry (Supervision) Act 1993 made by this Schedule apply to the 2008-2009 year of income and later years.

Amendments affecting section 65

16(2)
The amendments of the Superannuation Industry (Supervision) Act 1993 made by this Schedule apply for the purposes of the operation of section 65 of the Act in relation to:

(a) money lent on or after the day on which this Act receives the Royal Assent; and

(b) any other financial assistance commenced to be given on or after the day on which this Act receives the Royal Assent.

Amendments affecting section 66

16(3)
The amendments of the Superannuation Industry (Supervision) Act 1993 made by this Schedule apply for the purposes of the operation of section 66 of that Act in relation to assets acquired on or after the day on which this Act receives the Royal Assent.

No 134 of 2008, s 3 and Sch 4 item 17 contains the following transitional provision:

Transitional provision - in-house assets
17(1)
If:

(a) an asset of a superannuation fund consists of:

(i) a loan or an investment made before the day on which this Act receives the Royal Assent; or

(ii) a loan or an investment made after that day under a contract entered into before that day; or

(iii) an asset that becomes subject to a lease or a lease arrangement before that day; and

(b) apart from this item, the asset would be an in-house asset of the fund at any time after 1 July 2008; and

(c) the asset would be an in-house asset of the fund only because of the amendments of the Superannuation Industry (Supervision) Act 1993 (the SIS Act ) made by this Schedule;
then, for the purposes of the operation of Part 8 of the SIS Act on or after 1 July 2008, the asset is not an in-house asset of the fund.

17(2)
For the purposes of subparagraph (1)(a)(iii), if:

(a) a lease or a lease arrangement, enforceable by legal proceedings in respect of an asset was entered into before the day on which this Act receives the Royal Assent; and

(b) the lease or lease arrangement came into force on or after that day;
the asset is taken to have become subject to the lease or lease arrangement before that day.

S 65(6) formerly read:

65(6) Definition.
In this section:
relative
, in relation to an individual, means the following:

(a) a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of that individual or of his or her spouse;

(b) the spouse of that individual or of any other individual specified in paragraph (a).
View history note

Hide history note

History

Definition of " relative " substituted by No 199 of 1999.

65(7) Effect of Part 8.

View history reference

Nothing in Part 8 limits the operation of this section.

View history note

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.