Superannuation funds are regulated under

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Superannuation funds are regulated under: Superannuation Industry (Supervision) Act 1993   (SISA)  Superannuation Industry (Supervision)  Regulations 1994 (SISR)  Regulators: Australian Prudential Regulation Authority (APRA) Australian Securities and Investments Commission  (ASIC) ATO (for self managed funds) [¶24.3](a) © CCH Australia Limited
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Foundations of Taxation Law SISA & SISR operating standards SISA & SISR operating standards Superannuation funds are required to comply with  operating standards, including: Sole purpose test Lending and acquisition restrictions In-house asset restrictions Borrowing restrictions Contributions rules Cashing rules Preservation rules Breaches of the rules can result in penalties and loss  of “complying fund” status [¶24.3](b) © CCH Australia Limited
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Foundations of Taxation Law Conditions of release Conditions of release Benefits must generally be preserved in a fund (ie  they cannot be paid to members) until a “condition of  release” has been satisfied  Conditions of release are contained in Sch 1 SISR  and include:  Retirement  Death  Permanent incapacity Attaining 65 years of age  [¶24.3](c) © CCH Australia Limited
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Foundations of Taxation Law Preservation age Preservation age [¶24.3](d) © CCH Australia Limited Member’s birth date Preservation age Before July 1960 55 July 1960 – June 1961  56 July 1961 – June 1962  57 July 1962 – June 1963 58 July 1963 – June 1964 59 After June 1964  60
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Foundations of Taxation Law Superannuation plans Superannuation plans Superannuation investment occurs via a  “superannuation plan”, ie: A superannuation fund An approved deposit fund (ADF), or A retirement savings account (RSA) Superannuation funds may be: Accumulation funds Defined benefit funds Tax concessions are only available to “complying  superannuation funds” [¶24.4](a) © CCH Australia Limited
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Foundations of Taxation Law Complying superannuation funds Complying superannuation funds Fund must be “an Australian superannuation fund” Trustee must have a compliance notice from the  Regulator Compliance notice issued if the fund has: Not contravened the SIS regulatory provisions, or Contravened the SIS regulatory provisions but: Not failed a “culpability test” (non-self managed  funds), or Passed a “compliance test” (self managed  funds) [¶24.4](b) © CCH Australia Limited
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Foundations of Taxation Law Superannuation related vehicles Superannuation related vehicles ADFs  – roll-over funds for “warehousing”  superannuation benefits RSAs  – accounts maintained by banks and life  assurance institutions PSTs  – unit trusts in which only regulated 
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