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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.