Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For the purposes of subsection 7 (1) of the Act, the standards in subregulations (2) and (3) are prescribed.
(2) 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
(2A) 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.
(3) 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.
(4) 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.
(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 .
(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.