INCOME TAX ASSESSMENT REGULATIONS 1997

PART 3 - SUPERANNUATION BENEFITS PAID FROM COMPLYING PLANS ETC  

Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-D - Superannuation interests  

REGULATION 307-205.02C   DEFERRED SUPERANNUATION INCOME STREAMS - VALUE OF AN INTEREST  

307-205.02C(1)  
For the purposes of paragraph 307-205(1)(a) of the Act, the value at a particular time of an individual ' s superannuation interest that supports a deferred superannuation income stream referred to in subregulation (3) is the greater of:


(a) the sum of each amount of consideration paid for the interest for the income stream, and that amount ' s associated notional earnings, as worked out under subregulation (2) for the day that includes that time; and


(b) the total amount of the superannuation benefits that would become payable if the individual voluntarily caused the interest to cease at that time.

Note:

For paragraph (a), subregulation (2) works out a total amount made up of the amount of consideration and its associated notional earnings.

307-205.02C(2)  
An amount of consideration paid for the interest for the income stream, and that amount ' s associated notional earnings, for a particular day (the valuing day ) is worked out by applying the following formula for each adjustment day (from the earliest to the latest):

itar F2017L00704 Prov_307-205.02C(2)

where:

above threshold rate
, for a particular day, means the rate determined for that day under subsection 1082(2) of the Social Security Act 1991 .

adjustment day
means each of the following:


(a) each 12-month anniversary of the consideration payment day that happens before the valuing day;


(b) the valuing day.

applicable above threshold rate
, for a particular day, means:


(a) if that day is a 12-month anniversary of the consideration payment day - the above threshold rate for that day; or


(b) if that day is the valuing day - the proportion of the above threshold rate for that day equal to the number of days that the valuing day is in the 12 months starting on the day after:


(i) if the valuing day is at least 12 months after the consideration payment day - the most recent 12-month anniversary of the consideration payment day; or

(ii) otherwise - the consideration payment day.

compounded amount of consideration just before the adjustment day
means:


(a) for the earliest adjustment day - the amount of consideration; or


(b) for each later adjustment day - the result of applying the formula for the most recent earlier adjustment day.

consideration payment day
means the day the amount of consideration was paid.

307-205.02C(3)  
Subregulation (1) applies to a deferred superannuation income stream that:


(a) is covered by paragraph (c) of the definition of superannuation income stream in subregulation 995-1.01(1) ; and


(b) is neither a pooled investment pension nor a pooled investment annuity.




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