Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A * life insurance company (the transferring entity ) can choose to transfer losses if an * arrangement is made for which the conditions in this section are satisfied.
Original fund holds a complying superannuation life insurance policy
(2) The first condition is satisfied if, just before the * arrangement was made, a * complying superannuation life insurance policy issued by the transferring entity was held by:
(a) a * complying superannuation fund (the original fund ); or
(b) a * complying approved deposit fund (the original fund ).
Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the original fund holds other assets.
Original fund's members transfer to a continuing fund
(3) The second condition is satisfied if, under the * arrangement:
(a) the original fund 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 (within the meaning of that Act) of the original fund become members (within the meaning of that Act) of one or more * complying superannuation funds (the continuing funds ).
Continuing funds will usually not be able to be small funds
(4) The third condition is satisfied if either:
(a) none of the continuing funds was a * small superannuation fund, and all existed, just before the * arrangement was made; or
(b) the following subparagraphs apply:
(i) only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made;
(ii) under the arrangement, a * complying superannuation fund or * complying approved deposit fund, other than the original fund, ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 );
(iii) under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund;
(iv) either the other fund or the original fund was not a small superannuation fund just before the arrangement was made;
(v) the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act).
Ignore members who cannot transfer to a continuing fund
(5) For the purposes of subsections (3) and (4), ignore an individual who remains a member of a * complying superannuation fund or * complying approved deposit fund because of circumstances beyond the control of the trustee of that fund.