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 6 - GOVERNING RULES HAVE CHANGED  

6.1   Method of working out Y in the formula in section 1.8  

6.1(1)  
If:


(a) the governing rules of the defined benefit fund are amended in a way that may result in an increase in a member ' s benefit; and


(b) the amendment is made for a reason other than to satisfy a legislative requirement;

an additional amount ( Y ) may need to be included in the amount of notional taxed contributions for the financial year.

6.1(2)  
For the formula in section 1.8:


(a) in a financial year in which the fund rules are not changed in a way that may result in an increase in a member ' s benefit, Y equals zero; and


(b) in any other financial year:


(i) if the reason for the change in fund rules is to satisfy a legislative requirement, Y equals zero; and

(ii) if the change is for any other reason, Y equals an amount worked out on advice from an actuary that represents the increase in the value of the accrued retirement benefit, if any, that accrued to the member as a result of the change in fund rules.



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