Show download pdf controls
  • Step 3: Working out the FIF amount - box C



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Once the opening deemed value has been decided, the FIF amount - that is, the movement in the value of the FIF during the notional accounting period - is worked out by applying the following formula.

    (Opening value × deemed rate of return) × (number of days held ÷ 365)

    Opening value means the amount worked out in step 2 above.

    Deemed rate of return is the same interest rate as the 'basic statutory interest rate' plus 4% [section 555(2)].

    The basic statutory interest rate is the monthly average yield of the 90-day bank accepted bill rate. [section 214A of the ITAA 1936 and section 8AAD(2) of the Taxation Administration Act 1953]

    The interest rate is published by the Reserve Bank of Australia every quarter. If two or more rates apply in the income year, use the weighted average of those rates.

    Number of days held is the number of days in the notional accounting period in which you had the interests in the group.

    Last modified: 27 May 2005QC 17512