SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - SECT 62
Sole purpose test
SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - SECT 62
Sole purpose test
62.(1) The trustee of a regulated superannuation fund must ensure that the
fund is maintained solely:
(a) for one or more of the following purposes (the "core purposes"):
(i) the provision of benefits for each member of the fund on or
after the member's retirement from any business, trade,
profession, vocation, calling, occupation or employment in
which the member was engaged (whether the member's retirement
occurred before, or occurred after, the member joined the
fund);
(ii) the provision of benefits for each member of the fund on or
after the member's attainment of an age not less than the age
specified in the regulations;
(iii) the provision of benefits for each member of the fund on or
after whichever is the earlier of:
(A) the member's retirement from any business, trade,
profession, vocation, calling, occupation or employment
in which the member was engaged; or
(B) the member's attainment of an age not less than the age
prescribed for the purposes of subparagraph (ii);
(iv) the provision of benefits in respect of each member of the fund
on or after the member's death, if:
(A) the death occurred before the member's retirement from
any business, trade, profession, vocation, calling,
occupation or employment in which the member was engaged;
and
(B) the benefits are provided to the member's legal
personal representative, to any or all of the member's
dependants, or to both;
(v) the provision of benefits in respect of each member of the fund
on or after the member's death, if:
(A) the death occurred before the member attained the age
prescribed for the purposes of subparagraph (ii); and
(B) the benefits are provided to the member's legal
personal representative, to any or all of the member's
dependants, or to both; or
(b) for one or more of the core purposes and for one or more of the
following purposes (the "ancillary purposes"):
(i) the provision of benefits for each member of the fund on or
after the termination of the member's employment with an
employer who had, or any of whose associates had, at any time,
contributed to the fund in relation to the member;
(ii) the provision of benefits for each member of the fund on or
after the member's cessation of work, if the work was for gain
or reward in any business, trade, profession, vocation,
calling, occupation or employment in which the member was
engaged and the cessation is on account of ill-health (whether
physical or mental);
(iii) the provision of benefits in respect of each member of the fund
on or after the member's death, if:
(A) the death occurred after the member's retirement from any
business, trade, profession, vocation, calling,
occupation or employment in which the member was engaged
(whether the member's retirement occurred before, or
occurred after, the member joined the fund); and
(B) the benefits are provided to the member's legal
personal representative, to any or all of the member's
dependants, or to both;
(iv) the provision of benefits in respect of each member of the fund
on or after the member's death, if:
(A) the death occurred after the member attained the age
prescribed for the purposes of subparagraph (a)(ii); and
(B) the benefits are provided to the member's legal
personal representative, to any or all of the member's
dependants, or to both;
(v) the provision of such other benefits as the Commissioner
approves in writing.
(2) 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.
(3) An approval given by the Commissioner for the purposes of subsection (1)
may be expressed to relate to:
(a) a specified fund; or
(b) a specified class of funds.