Commonwealth Numbered Regulations

1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 13

13. Regulation 16 of the Principal Regulations is amended:
(a) by omitting from paragraph (1) (b) "by way of overdraft with an eligible
bank";

   (b)  by omitting subregulation (2) and substituting the following
        subregulation:

"(2) If under the governing rules of a superannuation fund:

   (a)  in the case of a private sector fund - established before 16 December
        1985; and

   (b)  in the case of a public sector fund - established before 25 May 1988;
        the trustees of the fund, on or before 16 December 1985 in the case of
        a private sector fund or 25 May 1988 in the case of a public sector
        fund:

   (c)  had express power to lend money to members; or

   (d)  lent money to members and that lending was not expressly prohibited;
then:

   (e)  paragraph (1) (a) does not apply to the fund; and

   (f)  the power of the trustees to lend money to members must not be varied
        except to limit that power or to remove it.";

   (c)  by omitting subregulation (3) and substituting the following
        subregulations:

"(3) If:

   (a)  the trustees of a private sector fund had, on or before 11 June 1986;
        or

   (b)  the trustees of a public sector fund had, on or before 1 July 1990;
        borrowed money in a manner that does not comply with the standard set
        out in paragraph (1) (b), the trustees must, as soon as practicable
        but in any event not later than the end of the applicable day, make
        such arrangements as are necessary to comply with that standard and,
        until such arrangements are made or the end of the applicable day,
        whichever happens first, that standard does not apply to the fund in
        respect of the money borrowed by the trustees on or before the day
        specified in paragraph (a) or (b), as the case requires.

"(3a) In subregulation (3), 'the applicable day' means:

   (a)  in relation to a private sector fund - 30 June 1995; or

   (b)  in relation to a public sector fund - 30 June 2000.";

   (d)  by adding at the end the following subregulation:

"(5) In subregulation (1), 'temporary finance' means finance arranged by
borrowing in order to overcome cash flow problems in the payment of
superannuation benefits.".