Income Tax Assessment Regulations 1997 (Repealed)


Division 292 - Excess non-concessional contributions  

Subdivision 292-D - Modifications for defined benefit interests  


For subsection 292-170(4) of the Act, this regulation sets out circumstances in which the amount of the notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund is nil.

A circumstance is that:

(a) the defined benefit interest is held in a public sector superannuation scheme; and

(b) none of the interest is sourced to any extent from:

(i) contributions made into a superannuation fund; or

(ii) earnings on such contributions;
unless the interest is an element taxed in the fund that is attributable to 1 or more roll-over superannuation benefits.

A circumstance is that, for the whole of the financial year:

(a) subregulation 292-170.02(2) applied, or was taken to have applied, in relation to the superannuation fund; and

(b) the member was a non-accruing member of the fund for the financial year (see subregulations (4) to (6)).

The member was a non-accruing member of the fund for the financial year if the member had no membership of the fund during the financial year other than membership as:

(a) an on-hold member; or

(b) a pensioned member.


A person could be an on-hold member of a fund for part of a financial year, and a pensioned member of the fund for another part of the financial year.

The member was an on-hold member of the fund if:

(a) the member had a benefit entitlement in the fund, but no employer-provided benefits accrued to the member; and

(b) the rules of the fund provided that the benefit:

(i) was not to increase in nominal terms; or

(ii) was to increase at a rate reflecting general price increases (for example, in accordance with the Consumer Price Index); or

(iii) was to increase at a rate reflecting the general level of salary growth or salary growth for relevant fund membership (for example, in accordance with average weekly earnings, or average weekly ordinary time earnings, published by the Australian Statistician); or

(iv) was to increase at the rate (if any) at which the salary on which the member ' s benefit was based increased; or

(v) was to increase at a rate reflecting the earning rate of the assets of the fund or the part of the fund to which the member belonged; or

(vi) in the case of a deferred benefit - was to increase at a rate reflecting any reduction in the expected period in which pension payments were to be made and any deferral of the date when payments would start; or

(vii) was to increase at a regular rate, or a rate worked out using a formula, that an actuary considered would not result in an increase that was more than the greatest of the increases mentioned in subparagraphs (i) to (vi).

The member was a pensioned member of the fund if:

(a) the member ' s membership of the fund consisted only of the member receiving pension payments from the superannuation fund; and

(b) any of the following applied:

(i) the pension payments were always the same amount;

(ii) the pension payments were paid from an account that related only to the member, and no employer contributions were paid to the account for the benefit of the member;

(iii) the pension payments increased at rates that were consistent with the rates prescribed under the rules of the fund that applied when the pension commenced to be paid.

For the purposes of determining whether a defined benefit member is a non-accruing member of the fund for a period, any employer contributions paid to the fund for the period to meet partially, or wholly, unfunded benefit liabilities of the fund are not to be treated as employer contributions for the benefit of the member for the period.

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