OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS 1987 (REPEALED)

PART II - SUPERANNUATION FUNDS  

Division 1 - General  

REGULATION 18BB   STANDARDS: PROHIBITION ON INTENTIONAL ACQUISITION OF ASSETS IN SPECIFIED CIRCUMSTANCES  

18BB(1)   [ Prescribed standards ]  

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

18BB(2)   [ Prohibition re acquisition of assets ]  

Subject to subregulation (2A), 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.

Exception - acquisitions of business real property and listed security

18BB(2A)   [ Acquisition of assets from member or relative of fund ]  

Subregulation (2) does not prohibit a trustee from acquiring an asset from a member of the fund or a relative of a member of the fund if:

(a) the asset is business real property of the member or relative, or a listed security; and

(b) the asset is acquired at market value; and

(c) where the asset is business real property - after the acquisition of the business real property, that property, together with any other business real property previously acquired from a member of the fund or a relative of a member since 30 November 1993, would represent not more than the acceptable percentage of the total value of the assets of the fund.

18BB(3)   [ Prohibition re use of acquisition schemes ]  

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.

18BB(4)   [ Definitions ]  

In this regulation:

acceptable percentage
means:

(a) for an excluded superannuation fund - 40 % ; and

(b) otherwise - 0 % ;

acquire an asset
does not include accept money;

business
includes any profession, trade, employment, vocation or calling carried on for the purposes of profit, including:

(a) the carrying on of primary production; and

(b) the provision of professional services;

but does not include occupation as an employee;

business real property
of a person means any freehold or leasehold interest in real property which is used wholly and exclusively in the person ' s business;

excluded superannuation fund
means a superannuation fund of which there are fewer than 5 members;

listed security
means:

(a) a share; or

(b) a unit; or

(c) a bond or debenture; or

(d) a right or option; or

(e) any other security;

listed for quotation in the official list of a stock exchange in Australia;

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.