Document ID: chunk:federal_register_of_legislation:C2025C00120:section:58pb:p1
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 58PB (pt 1/3)
Character Range: 250134–252769

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.

Endorsed funds
 (2) A fund is also an approved worker entitlement fund if:
 (a) the fund is endorsed as an approved worker entitlement fund under subsection (3); or
 (b) the entity that operates the fund is endorsed for the operation of the fund under subsection (3A).
 (3) The Commissioner must endorse a fund as an approved worker entitlement fund if:
 (a) the fund is entitled to be endorsed as an approved worker entitlement fund (see subsection (4)); and
 (b) the fund has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.
 (3A) The Commissioner must endorse an entity for the operation of a fund as an approved worker entitlement fund if:
 (a) the entity is entitled to be endorsed for the operation of the fund as an approved worker entitlement fund (see subsection (4A)); and
 (b) the entity has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.
 (4) A fund is entitled to be endorsed as an approved worker entitlement fund if:
 (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, or to death benefits dependants (within the meaning of the Income Tax Assessment Act 1997) or legal personal representatives (within the meaning of that Act) of those persons;
 (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;