Document ID: chunk:federal_register_of_legislation:C2010C00576:clause:7_58pb:p1
Version: federal_register_of_legislation:C2010C00576
Segment Type: clause
Provision Reference: sch 7 cl 58PB (pt 1/2)
Character Range: 98458–101183

58PB  Meaning of approved worker entitlement funds

 (1) A fund is an approved worker entitlement fund if the fund:
 (a) is established by or under a law of the Commonwealth, a State or a Territory for the purpose of ensuring that long service leave is paid; and
 (b) is operating under that law.

 (2) A fund is also an approved worker entitlement fund if:
 (a) the fund is prescribed for the purposes of this paragraph; and
 (b) a declaration under subsection (3) is not in force in relation to the fund.

 (3) The Treasurer may declare, in writing, that a fund is not an approved worker entitlement fund. The declaration is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

 (4) Before the Governor‑General makes a regulation under paragraph (2)(a) prescribing a fund for the purposes of that paragraph, the Commissioner must be satisfied that:
 (a) the management of the fund (including the management of the investments of the fund) is carried out at arm's length from the contributors to the fund and their associates; and
 (b) under the fund's constituting documents:
 (i) no more than 5% of the total assets of the fund are to be invested in an entity controlled by a contributor or an associate of a contributor; and
 (ii) the assets of the fund are not to be used to provide or facilitate any form of financial assistance, including a loan, to a contributor, a person in respect of whom contributions are made or an associate of a contributor or an associate of a person in respect of whom contributions are made; and
 (c) under the fund's constituting documents, payments from contributions to the fund are to be made only for the following purposes:
 (i) to pay worker entitlements to persons in respect of whom contributions are made;
 (ii) to make investments to generate income from the assets of the fund;
 (iii) to reimburse contributors who have paid entitlements directly to persons in respect of whom contributions are made;
 (iv) to return contributions to contributors;
 (v) to pay, for the benefit of a person in respect of whom contributions are made, an eligible termination payment (within the meaning of section 27A of the Income Tax Assessment Act 1936) into a complying superannuation fund (within the meaning of section 45 of the Superannuation Industry (Supervision) Act 1993), a complying approved deposit fund (within the meaning of section 47 of the Superannuation Industry (Supervision) Act 1993) or a retirement savings account (within the meaning of the Retirement Savings Account Act 1997);
 (vi) to transfer contributions to another approved worker entitlement fund;
 (vii) to pay the reasonable administrative expenses of the fund;
 (viii)