This information applies only to superannuation interests that are:
 defined benefit interests in taxed funds, and
 in the accumulation phase.
What is a defined benefit interest?
A defined benefit interest is generally an interest for which the benefits payable from the interest are defined by reference to a specified amount or matter, commonly the member's salary at a particular time or an average salary for a particular period.
What is the preJuly 1983 amount?
The preJuly 1983 component relates to superannuation entitlements accrued before 1 July 1983. The preJuly 1983 amount forms part of the taxfree component of the interest.
When is the preJuly 1983 amount calculated?
Taxed superannuation funds will calculate the preJuly 1983 component of the crystallised segment for all interests that include a taxable component and are in the accumulation phase as at 30 June 2007.
Taxed superannuation funds will have until 30 June 2008 to calculate the preJuly 1983 components. Superannuation providers that do not ensure this amount is calculated by this date may be subject to a penalty of up to $850.
Determining the defined benefit superannuation interest preJuly 1983 amount
The preJuly 1983 amount for a defined benefit interest is calculated using the following steps.
Step 1
A. 
Calculate the value of the retirement benefit that would have been payable at 30 June 2007 if the member had been eligible to retire on that date and had elected to do so. 
B. 
If the retirement benefit depends on the member's age, service or salary, or on the employer's consent, assume that the:

C. 
If part or all of the retirement benefit can be paid as a superannuation income stream, it's necessary to work out two amounts. First, the value of the income stream is calculated as:
multiplied by
Then, the total value of the retirement benefit is calculated as:
plus

D. 
If the superannuation benefit can only be paid as a lump sum then the value of the retirement benefit is the amount of that lump sum. 
Step 2
If a superannuation lump sum benefit, including a rollover superannuation benefit, would have been payable had the member resigned, or withdrawn their benefit on 30 June 2007, calculate the amount of that benefit.
Step 3
The value of the defined benefit superannuation interest for the purpose of calculating the preJuly 1983 amount is:
 the greater of the values worked out using steps 1 and 2, or
 if no value can be determined under step 2, the value of the defined benefit superannuation interest is the value worked out in step 1.
Example 1
Sebastian, age 54, has a defined benefit interest in a taxed superannuation fund. Sebastian's interest is in the accumulation phase. Both Sebastian and his employer contribute to the superannuation fund. Sebastian will be able to take his retirement benefit on reaching age 60.
On retirement, Sebastian will be entitled to be paid up to 50% of his benefits held in the fund as an indexed lifetime income stream and the remainder of the benefits as a lump sum. If Sebastian had been eligible to retire and had elected to do so at 30 June 2007, the annual rate of the maximum income stream payable would be $10,000 and his lump sum payable would be $100,000.
Sebastian would have been entitled to be paid a lump sum benefit of $200,000 had he actually resigned on 30 June 2007.
Sebastian's fund would determine the value of his interest for the purpose of calculating the preJuly 1983 amount of the crystallised segment of the taxfree component of his interest as follows:
Step 1
Calculate the value of the retirement benefit that would have been payable at 30 June 2007.
As Sebastian would be entitled to take up to 50% of his retirement benefit as an income stream, multiply the annual rate of the maximum income stream by the applicable factor to determine the value of the income stream.
The applicable factor for an indexed lifetime income stream payable to a person aged 60 is 16.513 (see Table 1 of Schedule 1B to the Income Tax Assessment Regulations 1997).
$10,000 x 16.513 = $165,130
The total value of the retirement benefit is the sum of the value of the income stream (worked out above) and the amount of the lump sum payable on retirement.
$165,130 + $100,000 = $265,130
Step 2
Sebastian would have been entitled to a lump sum of $200,000 if he had actually resigned on 30 June 2007.
Step 3
The value of Sebastian's defined benefit superannuation interest for the purpose of calculating the preJuly 1983 amount at 30 June 2007 is the greater of the values worked out using steps 1 and 2.
The value of Sebastian's defined benefit superannuation interest for the purpose of calculating the preJuly 1983 amount of the crystallised segment at 30 June 2007 is $265,130.
Determine the value of a defined benefit super interest to calculate the crystallised segment of the taxfree component.