INCOME TAX ASSESSMENT REGULATIONS 1997

SCHEDULE 1AA  

Note: See subregulation 293-115.20(2) .


WORKING OUT DEFINED BENEFIT CONTRIBUTIONS

PART 6 - GOVERNING RULES HAVE CHANGED  

22   Method of working out Y in the formula in subclause 4(2)  

22(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 employer contributions for the financial year.

22(2)  
For the formula in subclause 4(2):


(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.

22(3)  
The economic and other assumptions to be used are set out in Part 3.




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