Document ID: chunk:federal_register_of_legislation:C2004A00588:clause:1_71c
Version: federal_register_of_legislation:C2004A00588
Segment Type: clause
Provision Reference: sch 1 cl 71C
Character Range: 23475–25403

71C  Exceptions—transition period

Investments and loans

 (1) If:
 (a) at any time (the pre‑1 July 2001 time) during the period after the test time but before 1 July 2001, an asset of a superannuation fund consists of a loan or an investment made during the transition period, other than under a contract entered into before the beginning of that period; and
 (b) if the asset had been an asset of the fund immediately before the test time—the asset would not have been an in‑house asset of the fund; and
 (c) apart from this section, the asset would be an in‑house asset of the fund at the pre‑1 July 2001 time;
the asset is not an in‑house asset of the fund at the pre‑1 July 2001 time. For this purpose, a loan or an investment is not made during the transition period merely because a contract is entered into during that period for the purpose of gaining interest, income, profit or gain.

Leases and lease arrangements

 (2) If:
 (a) at any time (the pre‑1 July 2001 time) during the period after the test time but before 1 July 2001, an asset of a superannuation fund consists of an asset subject to a lease, or a lease arrangement, between the trustee of the fund and a related party of the fund; and
 (b) section 71B does not apply to the asset at the pre‑1 July 2001 time; and
 (c) the asset became subject to a lease or lease arrangement between the trustee of the fund and a related party at a time (the transition time) during the transition period; and
 (d) the asset was subject to a lease or a lease arrangement, or any uninterrupted sequence of leases and lease arrangements, between the trustee of the fund and a related party, throughout the period beginning at the transition time and ending at the pre‑1 July 2001 time; and
 (e) apart from this section, the asset would be an in‑house asset of the fund at the post‑test time;
the asset is not an in‑house asset of the fund at the pre‑1 July 2001 time.