INCOME TAX ASSESSMENT REGULATIONS 1997

SCHEDULE 1A  

(subregulations 292-170.02(2) , 292-170.05(2) and (3) and 292-170.06(2) and (3))


METHOD OF WORKING OUT AMOUNT OF NOTIONAL TAXED CONTRIBUTIONS

PART 1 - PRELIMINARY  

1.7   1.7   Standard method for working out amount of notional taxed contributions in respect of a benefit category for an accruing member of the benefit category if the fund benefit is not wholly sourced from an accumulation of contributions made in respect of the member  


If section 1.6 does not apply, the standard method for working out the amount of notional taxed contributions for an accruing member of a benefit category of a defined benefit fund for a financial year is:


1.2 × ( New entrant rate × S ×   D  
365
- M )

where, for the financial year:

new entrant rate
is the new entrant rate for the benefit category worked out by an actuary under Parts 2 and 3.

S
is the member ' s annual superannuation salary relevant to the benefit category on the first day of the financial year on which the member had a defined benefit interest in the scheme.

D
is the number of days during the financial year that the member was an accruing member of the benefit category.

M
is the amount of member contributions paid by or on behalf of the member in respect of the member ' s defined benefit interest in the fund during that part of the financial year that the member was an accruing member of the benefit category, and which are not assessable income of the fund.




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