Document ID: chunk:federal_register_of_legislation:C2025C00134:section:85
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 85
Character Range: 540400–541744

85  Prohibition of avoidance schemes

Prohibition
 (1) A person must not enter into, commence to carry out, or carry out, a scheme if the person entered into, commenced to carry out, or carried out the scheme or any part of the scheme with the intention that:
 (a) the scheme would result, or be likely to result, in an artificial reduction in the market value ratio of the fund's in‑house assets; and
 (b) that artificial reduction would avoid the application of any provision of this Part to the fund.

Civil penalty provision
 (2) Subsection (1) is a civil penalty provision as defined by section 193, and Part 21 therefore provides for civil and criminal consequences of contravening, or being involved in a contravention of, that subsection.

Validity of transaction not affected by contravention of subsection (1)
 (3) A contravention of subsection (1) does not affect the validity of a transaction.

Scheme
 (4) In this section:
scheme means:
 (a) any agreement, arrangement, understanding, promise or undertaking:
 (i) whether express or implied; or
 (ii) whether or not enforceable, or intended to be enforceable, by legal proceedings; and
 (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.

Part 9—Equal representation of employers and members—employer‑sponsored funds