06 May 10 Exposure Draft - Super funds acquiring assets from related parties
On 6 May 2010, Treasury released an Exposure Draft of a Bill which amends the Superannuation Industry (Supervision) Act 1993 (SIS Act 1993) to allow the trustee of a regulated superannuation fund to acquire an asset in-specie from a related party of the fund, following the relationship breakdown of a member of the fund, without contravening the prohibition in s 66(1).
Currently, s 66 of the SIS Act 1993 can prevent the transfer or roll-over of certain superannuation interests resulting from a relationship breakdown. ATO Determination SPR 2006/MB1, made on 28 August 2006, relaxes this prohibition where a self managed fund trustee acquires an asset from a related party following the marriage breakdown of a member. However, this Determination has a number of limitations as it does not extend to opposite-sex or same-sex de facto parties, nor does it cover transfers or roll-overs made to Australian Prudential Regulation Authority regulated funds.
The closing date for submissions is Thursday, 3 June 2010.