Commonwealth Consolidated Regulations

SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 13.22C

         (1)   This regulation applies to an asset of a superannuation fund that:

                (a)    is an investment in a company or unit trust; and

               (b)    was acquired by the fund on or after the commencement of this Division; and

                (c)    is not affected by subregulation 13.22D (3).

         (2)   For subparagraph 71 (1) (j) (ii) of the Act, the asset is not an in‑house asset of the superannuation fund if, w hen the asset is acquired:

                (a)    the superannuation fund has fewer than 5 members; and

               (b)    the company, or a trustee of the unit trust, is not a party to a lease with a related party of the superannuation fund, unless the lease relates to business real property; and

                (c)    the company, or a trustee of the unit trust, is not a party
to a lease arrangement with a related party of the superannuation fund, unless the lease arrangement:

                          (i)    is legally binding; and

                         (ii)    relates to business real property; and

               (d)    the company, or a trustee of the unit trust, is not a party to a lease, or lease arrangement, with another party in relation to an asset that is the subject of another lease or lease arrangement between any party and a related party of the superannuation fund (unless the asset is business real property); and

                (e)    the company, or a trustee of the unit trust, does not have outstanding borrowings; and

                (f)    the assets of the company or unit trust do not include:

                          (i)    an interest in another entity; or

                         (ii)    a loan to another entity, unless the loan is a deposit with an authorised deposit‑taking institution within the meaning of the Banking Act 1959 ; or

                         (iii)    an asset over, or in relation to, which there is a charge; or

                        (iv)    an asset that was acquired from a related party of the superannuation fund after 11 August 1999, unless the asset was business real property acquired at market value; or

                         (v)    an asset that had been at any time (unless it was business real property acquired by the company, or a trustee of the unit trust, at market value) an asset of a related party of the superannuation fund since the later of:

                                   (A)     the end of 11 August 1999; and

                                   (B)     the day 3 years before the day on which the fund first acquired an interest in the company or unit trust.

         (3)   In subparagraphs (2) (f) (iv) and (v):

"asset" does not include:

                (a)    money; or

               (b)    in relation to a company, a share in the company.