INCOME TAX ASSESSMENT REGULATIONS 1997

SCHEDULE 1AA  

Note: See subregulation 293-115.20(2) .


WORKING OUT DEFINED BENEFIT CONTRIBUTIONS

PART 1 - PRELIMINARY  

4   Method for determining amount of defined benefit contributions  

4(1)  
The defined benefit contributions for an accruing member for a financial year is the amount worked out as follows:


(BC - NTC) × 0.85 + NTC

where, for the financial year:

BC
is the notional employer contribution calculated for the member under subclause (2).

NTC
is the notional taxed contributions calculated for the member for the financial year under Schedule 1A to these Regulations, disregarding Subdivision 291-C of the Income Tax (Transitional Provisions) Act 1997 . If NTC has not been calculated for the member for the financial year because the member is a member of a constitutionally protected fund, NTC is zero.

Note 1:

Section 291-160 of the Act excludes superannuation interests in constitutionally protected funds from the provisions which explain how notional taxed contributions are to be calculated for defined benefit interests.

Note 2:

Salary packaged contributions which do not contribute towards funding the defined benefit interest are included in the amount calculated under step 1 of the method statement set out in section 293-105 of the Act and do not form any part of the method of determining defined benefit contributions.

4(2)  
The notional employer contribution for an accruing member for a financial year is the amount worked out as follows:


T + (1.2 × (W + X + Y + Z))

where, for the financial year:

T
is the sum of the amounts of notional employer financed contributions for each benefit category that the member belongs to during the financial year calculated under subclause (3).

W
is an amount worked out on advice from an actuary under Part 4.

X
is an amount worked out on advice from an actuary under Part 5.

Y
is an amount worked out on advice from an actuary under Part 6.

Z
is an amount worked out on advice from an actuary under Part 7.

4(3)  
The notional employer financed contributions for an accruing member for a benefit category of a defined benefit fund for a financial year is the amount worked out as follows:


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

where, for the financial year:

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:


(a) 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


(b) which are not assessable income of the fund;

but excluding any amounts which are not assessable income of the fund because of:


(c) item 5.3 of the table in section 50-25 of the Act; or


(d) a choice made under section 295-180 of the Act.

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.




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