The accuracy of the content is not guaranteed. Please rely only on the authorised document. The Assistant Treasurer, Senator Rod Kemp, today announced the commencement of regulations which allow small superannuation funds to invest in certain related companies and unit trusts. The regulations give effect to a concession announced when the Superannuation Legislation Amendment Act (No. 4) 1999 was passed. These regulations facilitate joint ownership of business real property by small superannuation funds (with fewer than five members) and their related parties, by allowing a superannuation fund and a related party to jointly own a company or trust that owns business real property. The company or trust may also own other assets, where not specifically excluded by the regulations. Investments by small superannuation funds will not be in-house assets, where the investments are in companies and unit trusts that comply with certain requirements. These requirements include (among other matters) that:
In addition, the Government has given consideration to whether the business real property exemption in section 66 of the Superannuation Industry (Supervision) Act 1993 should be extended to cover undeveloped commercial land that is not being used in a business. The Government will not be proceeding with such a change at this time, given the definitional issues involved but will continue to consult with industry. CANBERRA
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