INCOME TAX ASSESSMENT REGULATIONS 1997

SCHEDULE 1AA  

Note: See subregulation 293-115.20(2) .


WORKING OUT DEFINED BENEFIT CONTRIBUTIONS

PART 7 - NON-ARM ' S LENGTH INCREASE IN SUPERANNUATION SALARY  

23   Method of working out Z in the formula in subclause 4(2)  

23(1)  
If a member ' s superannuation salary is increased in a non-arm ' s length way with the primary purpose being to achieve an increase in superannuation benefit, an additional amount ( Z ) may need to be included in the amount of notional employer contributions for the financial year.

23(2)  
For the formula in subclause 4(2):


(a) in a financial year where the member ' s superannuation salary is not increased in a non-arm ' s length way - Z equals zero; and


(b) in any other financial year - Z 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 superannuation salary.

23(3)  
The economic and other assumptions to be used are set out in Part 3.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.