Commonwealth Consolidated Acts

SUPERANNUATION ACT 1976 - SECT 42

             (1)  Moneys standing to the credit of the Fund which the Board is of the opinion are moneys that are not for the time being required for the purpose of making payments out of the Fund under this Act shall, so far as is practicable, be invested by the Board in accordance with this Part, but the Board shall so manage the Fund that moneys that are from time to time required to pay benefits that are payable out of the Fund are available for that purpose.

             (2)  Moneys that, by virtue of subsection (1), are required to be invested by the Board may be invested in any manner and, without limiting the generality of the foregoing, may be invested by the Board jointly with another person or other persons.

             (3)  The Board may invest the money only through an investment manager or managers.

          (4A)  The Board must ensure that any investment manager engaged by the Board in accordance with subsection (3):

                     (a)  operates within the investment powers of the Board and the investment strategy and policy determined for the time being by the Board; and

                     (b)  reports to the Board on the state of the Board's investments and the investment market at such times and in such manner as the Board determines.

             (5)  Income derived from the investment of moneys standing to the credit of the Fund, or otherwise from the management of the Fund by the Board, shall form part of the Fund, and is not subject to taxation under a law of the Commonwealth (other than the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997 ) or a law of, a Territory or a State.

          (5A)  Subject to subsection (5B), the Board (in so far as it performs functions, or exercises powers, in relation to the Fund) and the Fund are not otherwise subject to taxation under a law of the Commonwealth (other than the Superannuation Contributions Tax (Assessment and Collection) Act 1997 , the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997 ) or to taxation under a law of a State or Territory to which the Commonwealth is not subject.

          (5B)  The regulations may provide that subsection (5A) does not apply in relation to taxation under a specified law.