Document ID: chunk:federal_register_of_legislation:C2020C00244:clause:2_1:p1
Version: federal_register_of_legislation:C2020C00244
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 1/11)
Character Range: 32710–35670

1  At the end of Part 3‑30
Add:

Division 310—Loss relief for merging superannuation funds

Table of Subdivisions
 Guide to Division 310
310‑A Object of this Division
310‑B Choice to transfer losses
310‑C Consequences of choosing to transfer losses
310‑D Choice for assets roll‑over
310‑E Consequences of choosing assets roll‑over
310‑F Choices

Guide to Division 310

310‑1  What this Division is about
      This Division sets out special rules for certain merging superannuation funds. These rules relate to the transfer of losses, the treatment of CGT events related to the merger and the treatment of assets related to the merger.
Note 1: This Division applies only to mergers happening between 24 December 2008 and 30 June 2011 (see Part 3 of Schedule 2 to the Tax Laws Amendment (2009 Measures No. 6) Act 2010).
Note 2: This Division and associated provisions will be repealed on 1 July 2013 (see Parts 4 and 5 of that Schedule).

Operative provisions

Subdivision 310‑A—Object of this Division

310‑5  Object
  The main object of this Division is to facilitate the consolidation of the superannuation industry by allowing certain merging *superannuation funds to retain the value, for income tax purposes, of certain losses that might otherwise cease to be able to be utilised as a result of the merger.

Subdivision 310‑B—Choice to transfer losses

Table of sections
310‑10 Original fund's assets extend beyond life insurance policies and units in pooled superannuation trusts
310‑15 Original fund's assets include a complying superannuation/FHSA life insurance policy
310‑20 Original fund's assets include units in a pooled superannuation trust

310‑10  Original fund's assets extend beyond life insurance policies and units in pooled superannuation trusts
 (1) A trustee of:
 (a) a *complying superannuation fund (the transferring entity or the original fund); or
 (b) a *complying approved deposit fund (the transferring entity or the original fund);
can choose to transfer losses if an *arrangement is made for which the conditions in this section are satisfied.

Transferring entity's assets include other assets
 (2) The first condition is satisfied if, just before the *arrangement was made, the transferring entity's assets included assets other than:
 (a) a *complying superannuation/FHSA life insurance policy; or
 (b) units in a *pooled superannuation trust.
Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the transferring entity holds a complying superannuation/FHSA life insurance policy or units in a pooled superannuation trust.

Original fund's members transfer to a continuing fund
 (3) The second condition is satisfied if, under the *arrangement:
 (a) the transferring entity ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993) at a particular time (the completion time); and
 (b) the individuals who cease to be members