Income Tax Assessment Regulations 1997
METHOD OF WORKING OUT AMOUNT OF NOTIONAL TAXED CONTRIBUTIONSPART 2 - NEW ENTRANT RATE 2.2 New entrant rate to be based on period of membership needed to reach maximum benefit accrual 2.2(1)
If the rules of the defined benefit fund applicable to the benefit category provide for a maximum benefit accrual, the new entrant rate is to be calculated on the basis that the benefit is funded over the period to when maximum accrual is attained. 2.2(2)
For practical purposes this means that, for the purpose of calculating the present value of future salaries payable to the new entrant, the superannuation salary is to be assumed to be zero at those ages after reaching maximum benefit accrual.
If maximum accrual is attained after 20 years of membership, the superannuation salary for a 30-year-old new entrant will be assumed to be zero at age 50 and above for the purpose of calculating the present value of future salaries payable to the new entrant.