Document ID: chunk:federal_register_of_legislation:C2025C00134:section:17a:p3
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 17A (pt 3/4)
Character Range: 124469–126936

(5) Subsection (4) does not, except for the purposes of section 29J, apply if the reason, or one of the reasons, why the superannuation fund would cease to be a self managed superannuation fund was the admission of one or more new members to the fund.

Extended meaning of employee in certain circumstances
 (6) For the purposes of this section, a member of a fund, who is an employee of an employer‑sponsor of the fund, is also taken to be an employee of another person (the other person), if the employer‑sponsor is:
 (a) a relative of the other person; or
 (b) either of the following:
 (i) a body corporate of which the other person, or a relative of the other person, is a director;
 (ii) a body corporate related to that body corporate; or
 (c) a trustee of a trust of which the other person, or a relative of the other person, is a beneficiary; or
 (d) a partnership, where:
 (i) the other person, or a relative of the other person, is a partner in the partnership; or
 (ii) the other person, or a relative of the other person, is a director of a body corporate that is a partner in the partnership; or
 (iii) the other person, or a relative of the other person, is a beneficiary of a trust, if a trustee of the trust is a partner in the partnership.
Note 1: An effect of this subsection is that a fund will not be a self managed superannuation fund if a member is employed by an employer‑sponsor of the fund, and another member (who is not a relative) has a specified interest in that employer‑sponsor: see paragraph (1)(e). An example of this would be where the employer‑sponsor is a company of which another member is a director.
Note 2: Another effect is that a fund will not be a self managed superannuation fund if its single member is employed by an employer‑sponsor of the fund in which the other trustee of the fund (who is not a relative) has a specified interest: see subsection (2).
 (7) Subsection (6) does not limit the meaning of the term employee.

Regulations
 (8) For the purposes of this section:
 (a) a member of a fund is taken to be an employee of a person belonging to a class specified in the regulations for the purposes of this paragraph; and
 (b) despite subsections (6) and (7) and section 15A, a member of a fund is not taken to be an employee of a person belonging to a class specified in the regulations for the purposes of this paragraph.

Meaning of relative
 (9) In this section:
relative, in relation to an individual, means: