Commonwealth Numbered Regulations - Explanatory Statements

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OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) 1993 NO. 14

EXPLANATORY STATEMENT

Statutory Rules 1993 No. 14

Issued by Authority of the Treasurer

Occupational Superannuation Standards Act 1987

Occupational Superannuation Standards Regulations (Amendment)

The Occupational Superannuation Standards Act 1987 (the Act) gives authority to the Government to set standards that superannuation funds must meet in order to be eligible for concessional taxation treatment.

Section 22 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

Subsection 7 (1) of the Act provides that the regulations may prescribe standards applicable to the operation of superannuation funds. Standards relating to the investment of a superannuation fund's assets, including in in-house assets, are among those prescribed.

These regulations give effect to one of the measures in the Treasurer's statement of 21 October 1992 entitled "Strengthening Super Security: New Prudential Arrangements for Superannuation" of a prohibition on new purchases of in-house assets by superannuation funds where the existing level of a fund's inhouse assets exceeds 5% of total assets at market value.

Regulation 1 specifies that the Occupational Superannuation Standards Regulations are amended as set out in these regulations.

Regulation 2 inserts a new Regulation 16B which prohibits new purchases by superannuation funds of in-house assets:

(a)       where the existing level of a fund's in-house assets already exceeds 5% of the fund's total assets at market value; and

(b)       in circumstances such that any new purchases would cause the market value of a fund's in-house assets to exceed 5% of the fund's total assets at market value.

These Regulations commenced on gazettal.


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