A proposed trust deed amendment conferring a power on a superannuation trustee to charge reasonable remuneration, for the purpose of building a capital reserve to meet potential liabilities that cannot be indemnified from the fund under the amended ss 56(2) and 57(2) of the SIS Act, does not itself contravene those indemnification prohibitions. The levying of a fee to build up an asset over time is fundamentally different from an exemption or indemnity. A relatively broad and practical approach should be adopted when assessing whether such an amendment is in the best financial interests of beneficiaries.
The full text is available to signed-in members, including the 12 later cases that cite this judgment.