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  • Step 3: Working out the movement in the value of the FLP - 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 you have determined the opening deemed value, work out the FIF amount - that is, the movement in the value of the FLP - by applying the following formula. [section 592]

    Opening value


    Deemed rate of return


    Number of days held

    Opening value means the amount determined in step 2.

    Deemed rate of return is the same interest rate as the 'basic statutory interest rate' plus 4%. [section 529]

    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 relevant income year, use the weighted average of those rates.

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

    Last modified: 27 May 2005QC 17512