Document ID: chunk:federal_register_of_legislation:C2004C01337:clause:1_17a:p3
Version: federal_register_of_legislation:C2004C01337
Segment Type: clause
Provision Reference: sch 1 cl 17A (pt 3/4)
Character Range: 12070–14459

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 the 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:
 (a) a parent, child, grandparent, grandchild, sibling, aunt, uncle, great‑aunt, great‑uncle, niece, nephew, first cousin or second cousin of the individual or of his or her spouse or former spouse; or
 (b) another individual having such a relationship to the individual or to his or her spouse or former spouse because of adoption or remarriage; or
 (c) the spouse or former spouse of the individual, or of an individual referred to in paragraph (a) or (b).

Disqualified persons

 (10) For the avoidance of doubt, subsection (3) does not permit a person, in the capacity of legal personal representative of a disqualified person (within the meaning of section 120), to be a trustee of a self managed superannuation fund.