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Income Tax Assessment Regulations 1997

Authoritative Version
  • - F2014C00824
  • In force - Superseded Version
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SR 1997 No. 198 Regulations as amended, taking into account amendments up to Tax Laws Amendment (2014 Measures No. 1) Regulation 2014
Principal Regulations
Administered by: Treasury
Registered 16 Jun 2014
Start Date 14 Jun 2014
End Date 02 Mar 2015

Description: Commonwealth Coat of Arms

Income Tax Assessment Regulations 1997

Statutory Rules No. 198, 1997 as amended

made under the

Income Tax Assessment Act 1997

Compilation start date:                     14 June 2014

Includes amendments up to:            SLI No. 90, 2014

About this compilation

This compilation

This is a compilation of the Income Tax Assessment Regulations 1997 as in force on 14 June 2014. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 16 June 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Part 1—Preliminary                                                                                                             1

1............................ Name of Regulations.......................................................... 1

2............................ Commencement.................................................................. 1

Part 2—Liability rules of general application                                                       2

Division 26Some amounts you cannot deduct, or cannot deduct in full            2

26‑85.01................ Borrowing costs on loans to pay life insurance premiums—term insurance policy 2

Division 28—Car expenses                                                                                        3

28‑25.01................ Car expenses—cents per kilometre (Act, s 28‑25).............. 3

Division 30—Valuation of particular gifts of property                              4

30‑212.01.............. Valuation of gifts................................................................ 4

30‑212.02.............. Application for valuation.................................................... 4

30‑212.05.............. Certificates of authenticity................................................... 5

30‑212.06.............. Estimates of fees................................................................. 5

30‑212.07.............. Advance payment of fees.................................................... 5

30‑212.08.............. Commissioner not required to consider certain applications 6

30‑212.09.............. Applications treated as having no effect.............................. 6

30‑212.10.............. Fees for carrying out valuations.......................................... 7

30‑212.11.............. Crediting and repaying valuation fees................................. 7

30‑212.12.............. Valuation certificates........................................................... 7

Division 31—Conservation covenants                                                                 9

31‑15.01................ Valuation of land................................................................ 9

31‑15.02................ Application for valuation.................................................... 9

31‑15.03................ Estimates of fees—request by applicant............................ 10

31‑15.04................ Advance payment of fees.................................................. 10

31‑15.05................ Commissioner not required to consider certain applications 10

31‑15.06................ Applications treated as having no effect............................ 11

31‑15.07................ Fees for carrying out valuations........................................ 11

31‑15.08................ Crediting and repaying valuation fees............................... 11

31‑15.09................ Valuation certificates......................................................... 12

Division 50—Exempt entities                                                                                  14

50‑50.01................ Prescribed institutions located outside Australia (Act s 50‑50(c))            14

50‑50.02................ Prescribed institutions pursuing objectives principally outside Australia (Act s 50‑50(d))      14

50‑50.03................ Prescribed sporting society, association or club................ 15

Division 51—Exempt amounts                                                                               16

51‑5.01.................. Defence allowances (Act s 51‑5)...................................... 16

51‑42.01................ Bonuses for early completion of an apprenticeship........... 17

Division 61—Generally applicable tax offsets                                              19

Subdivision 61‑G—Private health insurance offset complementary to Part 2‑2 of the Private Health Insurance Act 2007                                                                                                19

61‑220.01.............. Definitions for Subdivision 61‑G..................................... 19

61‑220.02.............. Private health insurer to provide annual statement to PHIIB 19

Division 70—Trading stock                                                                                     20

70‑55.01................ Cost of natural increase of live stock—paragraph 70‑55(1)(b) of Act     20

Division 83A—Employee share schemes                                                          21

83A‑5.01............... Object of Division 83A.................................................... 21

83A‑315.01........... Determining the value of a right........................................ 21

83A‑315.02........... Valuing unlisted rights...................................................... 21

83A‑315.03........... Exercise price of right nil or can not be determined.......... 22

83A‑315.04........... Value of beneficial interests.............................................. 22

83A‑315.05........... Outline of remainder of Division...................................... 22

83A‑315.06........... Step 1—calculate the calculation percentage..................... 22

83A‑315.07........... Step 2—how to use calculation percentage....................... 22

83A‑315.08........... Table 1 and instructions.................................................... 23

83A‑315.09........... Table 2 and instructions.................................................... 24

Part 2A—Specialist liability rules                                                                               27

Division 230—Taxation of financial arrangements                                   27

230‑355.01............ Recording requirements.................................................... 27

Division 290Contributions to superannuation funds                             28

Subdivision 290‑C—Deducting personal contributions                                  28

290‑170.01............ Notice of intent to deduct contributions—contributions‑splitting applications         28

Division 292Excess contributions tax                                                           29

Subdivision 292‑B—Excess concessional contributions tax                          29

292‑25.01.............. Concessional contributions for a financial year................. 29

Subdivision 292‑C—Excess non‑concessional contributions tax                 31

292‑90.01.............. Non‑concessional contributions for a financial year......... 31

Subdivision 292‑D—Modifications for defined benefit interests                 32

292‑170.01............ Definitions........................................................................ 32

292‑170.02............ Notional taxed contributions—contributions for funds with 5 or more defined benefit members            33

292‑170.03............ Notional taxed contributions—contributions for funds where regulation 292‑170.02 does not apply     34

292‑170.04............ Notional taxed contributions—nil amount........................ 36

292‑170.05............ Notional taxed contributions—other conditions (paragraph 292‑170(6)(d) of the Act)           38

292‑170.06............ Notional taxed contributions—other conditions (subparagraph 292‑170(7)(e)(ii) of the Act) 40

292‑170.07............ Notional taxed contributions—other conditions (paragraph 292‑170(8)(d) of the Act)           42

292‑170.08............ Notional taxed contributions—other conditions (subparagraph 292‑170(9)(e)(ii) of the Act) 44

Division 293—Sustaining the superannuation contribution concession 46

Subdivision 293‑D—Modifications for defined benefit interests                 46

293‑115.01............ Method of determining amount of defined benefit contributions              46

Subdivision 293‑DA—Further modifications for defined benefit interests 46

293‑115.05............ Preliminary....................................................................... 46

293‑115.10............ Defined benefit contributionsnon‑accruing members.... 47

293‑115.15............ Defined benefit contributionsaccruing members with funded benefit interests     47

293‑115.20............ Defined benefit contributionsaccruing members with other interests    48

Subdivision 293‑E—Modifications for constitutionally protected State higher level office holders       48

293‑145.01............ Constitutionally protected State higher level office holders 48

Division 295Taxation of superannuation entities                                   49

Subdivision 295‑D—Contributions excluded                                                    49

295‑265.01............ Application of pre‑1 July 1988 funding credits—limit on choice             49

Subdivision 295‑F—Exempt income                                                                   55

295‑385.01............ Segregated current pension assets—prescribed superannuation income stream benefits          55

Subdivision 295‑G—Deductions                                                                           55

295‑465.01............ Deductible portion of premiums....................................... 55

Part 3—Superannuation benefits paid from complying plans etc         59

Division 301Superannuation member benefits paid from complying plans etc             59

Subdivision 301‑D—Departing Australia superannuation payments         59

301‑170.01............ Departing Australia superannuation payments.................. 59

Subdivision 301‑E—Superannuation lump sum member benefits less than $200         59

301‑225.01............ Superannuation lump sum member benefits less than $200 are tax free   59

Division 302Superannuation death benefits paid from complying plans etc  60

Subdivision 302‑D—Definitions relating to dependants                                 60

302‑195................. Circumstances in which a person died in the line of duty. 60

302‑195A.............. Circumstances in which a person is taken not to have died in the line of duty         63

302‑200.01............ What is an interdependency relationship—matters to be taken into account             64

302‑200.02............ What is an interdependency relationship—existence of relationship        65

Division 303Superannuation benefits paid in special circumstances  67

303‑10.01.............. Meaning of terminal medical condition............................ 67

Division 306Roll‑overs etc                                                                                  68

306‑10.01.............. Roll‑over superannuation benefit...................................... 68

Division 307Key concepts relating to superannuation benefits      69

Subdivision 307‑C—Components of a superannuation benefit                    69

307‑125.01............ Components of member benefits accruing before 1 July 1999 paid from the Military Superannuation and Benefits Scheme............................................................... 69

307‑125.02............ Components of superannuation benefits after death of recipient of superannuation income stream         70

Subdivision 307‑D—Superannuation interests                                                 72

307‑200.01............ Application of Subdivision 307‑D to Subdivisions 291‑C and 293‑D of the Act    72

307‑200.02............ Meaning of superannuation interests................................ 72

307‑200.03............ Meaning of superannuation interests—treating a superannuation interest as 2 or more superannuation interests (public sector schemes)..................................................... 72

307‑200.05............ Meaning of superannuation interests—treating a superannuation interest as 2 or more superannuation interests (superannuation income streams)...................................... 73

307‑205.01............ Value of superannuation interest for calculating pre‑July 1983 amount for members in the contributions and investment phase............................................................... 73

307‑205.02............ Value of superannuation interest....................................... 75

307‑205.02A......... Superannuation income streams or superannuation annuities based on identifiable amounts—value of an interest.............................................................................. 76

307‑205.02B......... Public sector superannuation schemes—value of an interest 77

Part 4—International aspects of income tax                                                        78

Subdivision 775‑B—Realisation of forex gains or losses                              78

775‑145.01............ Application of forex events to currency and fungible rights and obligations            78

Subdivision 830‑A—Meaning of foreign hybrid                                              81

830‑15.01.............. Foreign hybrid company................................................... 81

Part 5—Administration                                                                                                    82

Division 910—Transitional and application arrangements                   82

910‑1.01................ Transitional arrangements arising out of the Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013..................................................... 82

910‑1.02................ Transitional arrangements arising out of the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013.......................................................................................... 82

910‑1.03................ Transitional arrangements arising out of the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013.......................................................................................... 82

910‑1.04................ Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Regulation 2014..................................................... 83

910‑1.05................ Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2014 Measures No. 2) Regulation 2014..................................................... 83

Part 6—The Dictionary                                                                                                    84

Division 960—General                                                                                               84

Subdivision 960‑C—Foreign currency                                                               84

960‑50.01.............. Translation of foreign currency amounts into Australian currency—modification of special translation rules.......................................................................................... 84

Subdivision 960‑D—Functional currency                                                          86

960‑80.01.............. Translation rules—translation into applicable functional currency           86

960‑80.02.............. Translation rules for an attributable taxpayer of a CFC—translation into applicable functional currency 86

960‑80.03.............. Translation rules—translation from applicable functional currency into Australian currency   87

Division 974—Debt and equity interests                                                          90

Subdivision 974‑F—Related concepts                                                                 90

974‑135A.............. Non‑cumulative redeemable preference shares issued by credit union     90

974‑135B.............. Non‑cumulative redeemable preference shares issued by mutual building society   91

974‑135C.............. Redeemable preference shares.......................................... 92

974‑135D.............. Term cumulative subordinated note with insolvency or capital adequacy conditions               92

974‑135E............... Perpetual cumulative subordinated note with profitability, insolvency or negative earnings conditions   94

974‑135F............... Term cumulative subordinated note with non‑viability condition             96

Division 995—Definitions                                                                                         98

995‑1.01................ Definitions........................................................................ 98

995‑1.03................ Payments that are not superannuation income stream benefits 102

995‑1.04................ Constitutionally protected funds..................................... 102

995‑1.05................ Approved stock exchanges............................................. 102

Schedule 1—Cents per kilometre                                                               103

Part 1—Definitions                                                                                                            103

Part 2—Cents per kilometre                                                                                        104

Schedule 1AMethod of working out amount of notional taxed contributions          105

Part 1Preliminary                                                                                                         105

Part 2New entrant rate                                                                                              109

Part 3Valuation parameters                                                                                   112

Part 4Exercise of discretion to pay a benefit greater than the benefit assumed in calculating the new entrant rate                                                                                                         116

Part 5Member has changed benefit category                                              117

Part 6Governing rules have changed                                                               118

Part 7Non‑arm’s length increase in superannuation salary               119

Schedule 1AA—Working out defined benefit contributions                120

Part 1—Preliminary                                                                                                         120

Part 2New entrant rate                                                                                              123

Part 3Valuation parameters                                                                                   125

Part 4Exercise of discretion to pay a benefit greater than the benefit assumed in calculating the new entrant rate                                                                                                         130

Part 5Member has changed benefit category                                              131

Part 6Governing rules have changed                                                               132

Part 7Non‑arm’s length increase in superannuation salary               133

Schedule 1BValuation factors                                                                 134

Schedule 2—Translation of currency amounts—rules and other requirements             139

Part 1—Rules and requirements for item 12 of the table in subsection 960‑50(6) of the Act      139

Part 2—Translation of foreign currency amounts into Australian currency—rules and requirements for item 11A of the table in subsection 960‑50(6) of the Act         142

Schedule 4Constitutionally protected superannuation funds—State legislation      143

Schedule 5—Approved stock exchanges                                           145

Endnotes                                                                                                                                  149

Endnote 1—About the endnotes                                                                          149

Endnote 2—Abbreviation key                                                                              151

Endnote 3—Legislation history                                                                           152

Endnote 4—Amendment history                                                                         157

Endnote 5—Uncommenced amendments [none]                                        167

Endnote 6—Modifications [none]                                                                       167

Endnote 7—Misdescribed amendments [none]                                           167

Endnote 8—Miscellaneous [none]                                                                      167

 


Part 1Preliminary

  

1  Name of Regulations

                   These Regulations are the Income Tax Assessment Regulations 1997.

2  Commencement

                   These Regulations commence on 1 July 1997.

Part 2Liability rules of general application

Division 26Some amounts you cannot deduct, or cannot deduct in full

26‑85.01  Borrowing costs on loans to pay life insurance premiums—term insurance policy

                   The risk component of a premium received in respect of:

                     (a)  a term insurance policy; or

                     (b)  a rider or supplementary benefit attached to another policy where the sum insured is payable on death within a specified term;

is the whole of the premium.

Division 28Car expenses

28‑25.01  Car expenses—cents per kilometre (Act, s 28‑25)

                   For the purposes of section 28‑25 of the Act, the number of cents used for calculating a deduction for car expenses for an income year, using the ‘cents per kilometre’ method, is set out in Part 2 of Schedule 1.

Division 30Valuation of particular gifts of property

30‑212.01  Valuation of gifts

                   For section 30‑212 of the Act, this Division sets out:

                     (a)  the procedure for seeking a valuation of a gift mentioned in that section; and

                     (b)  the fees that may be payable for the valuation; and

                     (c)  arrangements for payment of fees.

Note:          Subsection 30‑212(1) of the Act applies to a person who makes a gift that is covered by a provision of Division 30 of Part 2‑5 of the Act that refers to the value of property as determined by the Commissioner.

                   The effect of subsection 30‑212(1) is that the person must seek the valuation from the Commissioner.

                   Under subsection 30‑212(2), the Commissioner may charge the person the amount worked out in accordance with the regulations for making the valuation.

30‑212.02  Application for valuation

                   An application for a valuation under subsection 30‑212(1) of the Act must:

                     (a)  be in the approved form; and

                     (b)  be lodged with the Commissioner; and

                     (c)  include the application fee required by the approved form, which must not be more $1 000.

Note:          Section 995‑1 of the Act provides that approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953. That section provides that an application under a taxation law is in the approved form if, and only if:

(a)    it is in the form approved in writing by the Commissioner for that kind of application; and

(b)    it contains a declaration signed by a person or persons as the form requires; and

(c)    it contains the information that the form requires, and any further information, statement or document as the Commissioner requires, whether in the form or otherwise.

30‑212.05  Certificates of authenticity

             (1)  An application for a valuation of property other than real property must include a certificate of the authenticity of the property.

             (2)  If the Commissioner is not satisfied that a certificate of authenticity is adequate, the Commissioner may:

                     (a)  make arrangements to obtain 1 or more certificates of authenticity; and

                     (b)  charge the applicant a fee that is not greater than the cost of obtaining the certificate.

30‑212.06  Estimates of fees

             (1)  An applicant for a valuation may ask the Commissioner for an estimate of the likely fee for the valuation.

             (2)  If the Commissioner is asked for an estimate:

                     (a)  the Commissioner must comply with the request as soon as practicable; but

                     (b)  the Commissioner is not bound by the estimate.

30‑212.07  Advance payment of fees

             (1)  The Commissioner may require an applicant for a valuation to give the Commissioner an advance payment of the fee that may be payable for the valuation.

             (2)  If the Commissioner requires an advance payment, the Commissioner must give the applicant a written statement:

                     (a)  requiring the payment; and

                     (b)  stating the amount of the payment; and

                     (c)  explaining how the amount was worked out.

             (3)  The Commissioner:

                     (a)  may require an advance payment only within 14 days after receiving an application; and

                     (b)  may require more than 1 advance payment during that period from the same applicant.

             (4)  The applicant must give the Commissioner the advance payment within 14 days after receiving the statement requiring the payment.

30‑212.08  Commissioner not required to consider certain applications

             (1)  If the Commissioner decides to obtain a certificate of authenticity under regulation 30‑212.05, the Commissioner is not required to consider the application to which the certificate relates until the Commissioner receives the certificate.

             (2)  If the Commissioner is preparing an estimate of a fee under regulation 30‑212.06, the Commissioner is not required to consider the application to which the estimate relates until the Commissioner has given the estimate to the applicant.

             (3)  If the Commissioner has required the advance payment of a fee under regulation 30‑212.07, the Commissioner is not required to consider the application to which the payment relates until the fee is paid.

30‑212.09  Applications treated as having no effect

             (1)  If an application for a valuation does not comply with regulation 30‑212.02:

                     (a)  the Commissioner must treat the application as having no effect; and

                     (b)  the Commissioner must give the applicant a written statement that the application is being treated that way.

             (2)  If an application for a valuation does not include all of the application fee:

                     (a)  the Commissioner must treat the application as having no effect; and

                     (b)  the Commissioner must give the applicant a written statement that the application is being treated that way.

             (3)  If the Commissioner has required the advance payment of a fee under regulation 30‑212.07, and the fee is not paid within the time mentioned in subregulation 30‑212.07(4):

                     (a)  the Commissioner must treat the application to which the payment relates as having no effect after that time; and

                     (b)  the Commissioner must give the applicant a written statement that the application is being treated that way.

Note:          Subregulation 30‑212.10(2) is relevant to an application that is treated as having no effect under subregulation (3).

30‑212.10  Fees for carrying out valuations

             (1)  The fee for carrying out a valuation is the actual cost of the valuation, including all costs of the Commissioner in obtaining the valuation.

             (2)  If the Commissioner starts a valuation but the application for the valuation is withdrawn or treated as having no effect under subregulation 30‑212.09(3), a fee representing the cost of the incomplete valuation is payable.

30‑212.11  Crediting and repaying valuation fees

             (1)  The application fee paid under regulation 30‑212.02 is to be credited against the fee for the valuation.

             (2)  An advance payment of a fee paid under regulation 30‑212.07 is to be credited against the fee for the valuation.

             (3)  The fee payable for the valuation is a debt due to the Commonwealth and recoverable in a court of competent jurisdiction.

             (4)  However, if the total of advance payments of fees is more than the fee payable for the valuation, the Commissioner must pay the difference to the applicant as soon as practicable.

30‑212.12  Valuation certificates

             (1)  If the Commissioner completes a valuation, the Commissioner must give a valuation certificate to the applicant for the valuation.

             (2)  The Commissioner must approve, in writing, 1 or more forms of a certificate.

             (3)  The certificate must include the following information:

                     (a)  the date on which the valuation was completed;

                     (b)  a description of any real property (including a lot and plan number, title reference and the location of the property);

                     (c)  a full description of property other than real property;

                     (d)  the period for which the valuation is in force;

                     (e)  a statement of the valuation.

             (4)  The certificate may include other information.

             (5)  The Commissioner must not give a valuation certificate to the applicant until:

                     (a)  the valuation has been completed; and

                     (b)  the Commissioner has received the full amount of the fees payable for the valuation.

Division 31Conservation covenants

31‑15.01  Valuation of land

                   For section 31‑15 of the Act, this Division sets out:

                     (a)  the procedure for seeking a valuation of the change in the market value of the land mentioned in that section; and

                     (b)  the fees that may be payable for the valuation; and

                     (c)  arrangements for the payment of fees.

Note:          Section 31‑15 of the Act applies to a person who enters into a conservation covenant over land owned by the person, if the conditions mentioned in subsection 31‑5(2) of the Act are met.  Subsection 31‑15(1) provides that the person must seek a valuation of the change in the market value of the land from the Commissioner.  Subsection 31‑15(2) provides that the Commissioner may charge the person the amount worked out in accordance with the regulations for making the valuation.

31‑15.02  Application for valuation

                   An application for a valuation under subsection 31‑15(1) of the Act must:

                     (a)  be in the approved form; and

                     (b)  be lodged with the Commissioner; and

                     (c)  include a copy of the conservation covenant; and

                     (d)  include the application fee required by the approved form, which must not be more $1 000.

Note:          Section 995‑1 of the Act provides that approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953. That section provides that an application under a taxation law is in the approved form if, and only if:

(a)    it is in the form approved in writing by the Commissioner for that kind of application; and

(b)    it contains a declaration signed by a person or persons as the form requires; and

(c)    it contains the information that the form requires, and any further information, statement or document as the Commissioner requires, whether in the form or otherwise.

31‑15.03  Estimates of fees—request by applicant

             (1)  An applicant may ask the Commissioner for an estimate of the likely fee for the valuation.

             (2)  If the Commissioner is asked for an estimate:

                     (a)  the Commissioner must give the estimate as soon as practicable; and

                     (b)  the Commissioner is not bound by the estimate.

31‑15.04  Advance payment of fees

             (1)  The Commissioner may, within 14 days after receiving an application, give to the applicant a written statement:

                     (a)  requiring the applicant to give to the Commissioner an advance payment of the fee that may be payable for the valuation; and

                     (b)  stating the amount of the payment; and

                     (c)  explaining how the amount was worked out.

             (2)  The Commissioner may ask for more than 1 advance payment during the period mentioned in subregulation (1) from the same applicant.

             (3)  The applicant must give to the Commissioner the advance payment within 14 days after receiving the statement asking for the payment.

31‑15.05  Commissioner not required to consider certain applications

             (1)  If the Commissioner is preparing an estimate of a fee under regulation 31‑15.03, the Commissioner is not required to consider the application to which the estimate relates until the Commissioner has given the estimate to the applicant.

             (2)  If the Commissioner has required the advance payment of a fee under regulation 31‑15.04, the Commissioner is not required to consider the application to which the payment relates until the fee is paid.

31‑15.06  Applications treated as having no effect

             (1)  If an application for a valuation does not comply with regulation 31‑15.02, the Commissioner must:

                     (a)  treat the application as having no effect; and

                     (b)  give to the applicant a written statement that the application is being treated that way.

             (2)  If an application for a valuation does not include all of the application fee, the Commissioner must:

                     (a)  treat the application as having no effect; and

                     (b)  give to the applicant a written statement that the application is being treated that way.

             (3)  If the Commissioner has required the advance payment of a fee under regulation 31‑15.04, and the fee is not paid within the time mentioned in subregulation 31‑15.04(3), the Commissioner must:

                     (a)  treat the application to which the payment relates as having no effect after that time; and

                     (b)  give to the applicant a written statement that the application is being treated that way.

Note:          Subregulation 31‑15.07(2) is relevant to an application that is treated as having no effect under subregulation (3).

31‑15.07  Fees for carrying out valuations

             (1)  The fee for carrying out a valuation is the actual cost of the valuation, including all costs of the Commissioner in obtaining the valuation.

             (2)  If the Commissioner starts a valuation but the application for the valuation is withdrawn or treated as having no effect under subregulation 31‑15.06(3), a fee representing the cost of the incomplete valuation is payable.

31‑15.08  Crediting and repaying valuation fees

             (1)  The application fee paid under regulation 31‑15.02 is to be credited against the fee for the valuation.

             (2)  An advance payment of a fee paid under regulation 31‑15.04 is to be credited against the fee for the valuation.

             (3)  The fee payable for the valuation is a debt due to the Commonwealth and recoverable in a court of competent jurisdiction.

             (4)  However, if the total of advance payments of fees is more than the fee payable for the valuation, the Commissioner must pay the difference to the applicant as soon as practicable.

31‑15.09  Valuation certificates

             (1)  If the Commissioner completes a valuation, the Commissioner must give a valuation certificate to the applicant for the valuation.

             (2)  The Commissioner must approve, in writing, 1 or more forms of a certificate.

             (3)  The certificate must include the following information:

                     (a)  the date on which the valuation was completed;

                     (b)  a description of the land (including a lot and plan number, title reference and the location of the land);

                     (c)  a statement of the market value of the land immediately before the conservation covenant was entered into;

                     (d)  a statement of the market value of the land immediately after the conservation covenant was entered into;

                     (e)  a statement of the difference between the market value mentioned in paragraph (c) and the market value mentioned in paragraph (d);

                      (f)  a statement of the extent to which the difference mentioned in paragraph (e) is attributable to the conservation covenant being entered into.

             (4)  The certificate may include other information.

             (5)  The Commissioner must not give a valuation certificate to the applicant until:

                     (a)  the valuation has been completed; and

                     (b)  the Commissioner has received the full amount of the fees payable for the valuation.

Division 50Exempt entities

50‑50.01  Prescribed institutions located outside Australia (Act s 50‑50(c))

                   For paragraph 50‑50(c) of the Act, each institution mentioned in an item in the following table is a prescribed institution on and after the date mentioned in the item:

 

Item

Name of institution

Date of effect

1

Catholic Bishops’ Conference of the Pacific (Fiji)

1 July 1997

2

Catholic Diocese of Rarotonga (Cook Islands)

1 July 1997

3

Catholic Diocese of Bougainville (Papua New Guinea)

1 July 1997

4

Catholic Diocese of Port Vila (Vanuatu)

1 July 1997

5

Catholic Diocese of Suva (Fiji)

1 July 1997

6

Catholic Diocese of Noumea (New Caledonia)

1 July 1997

7

Catholic Diocese of Tonga

1 July 1997

8

Catholic Diocese of Auki (Solomon Islands)

1 July 1997

9

Catholic Archdiocese of Rabaul (Papua New Guinea)

18 August 2003

10

Diocese of Honiara Registered Trustees (Incorporated)

10 June 2005

50‑50.02  Prescribed institutions pursuing objectives principally outside Australia (Act s 50‑50(d))

                   For paragraph 50‑50(d) of the Act, each institution mentioned in an item in the following table, and each institution that is a member of that institution, is a prescribed institution on and after the date mentioned in the item:

 

Item

Name of institution

Date of effect

1

Australasian Christadelphian Mission Incorporated

1 July 1997

2

Australian Advisory Council of the Christian Leaders’ Training College of Papua New Guinea

1 July 1997

3

Australian Evangelical Alliance Incorporated (Missions Interlink)

1 July 1997

4

Evangelical Missionary Alliance NSW

1 July 1997

5

Mango Tree Foundation Limited

1 July 1997

6

Orphans Refugees Aid International Incorporated

1 July 1997

7

Steer Incorporated

1 July 1997

8

Trustees of the Marist Missions of the Pacific

1 July 1997

9

Zebedee Investments Ltd

1 July 1997

10

Alkitab Inc

1 July 1997

11

The Australian Centre Berlin Limited

19 June 2001

12

Millennium Relief and Development Services Incorporated

3 September 2001

13

Asia‑Pacific Educational Research Association Limited

26 November 2001

50‑50.03  Prescribed sporting society, association or club

                   For paragraph 50‑70(c) of the Act, International Cricket Council Development (International) Limited is prescribed for the period that starts on 1 July 2013 and ends on 30 June 2018.

Division 51Exempt amounts

51‑5.01  Defence allowances (Act s 51‑5)

             (1)  For items 1.1 and 1.2 of section 51‑5 of the Act, an allowance:

                     (a)  specified in an item of the table; and

                     (b)  paid on or after 31 May 2005 under the provision of the Determination specified in the item;

is prescribed.

 

Item

Allowance

Provision of the Determination

1

separation allowance

Division 1 of Part 1 of Chapter 6

2

disturbance allowance

Division 2 of Part 1 of Chapter 6

3

rent allowance paid to a member without dependants or a member with dependants (separated) within the meaning of the Determination

Part 6 of Chapter 7

4

reimbursement of education costs for a child while the member is a resident in Australia

Part 4 of Chapter 8

5

reimbursement in place of a child’s scholarship

Division 3 of Part 4 of Chapter 8

6

transfer allowance

Division 3 of Part 3 of Chapter 14

7

reimbursement of education costs for a child educated at the location of a member’s long‑term posting overseas

Part 6 of Chapter 15

8

reimbursement of education costs for a child educated in Australia while the member is on a long‑term posting overseas

Part 6 of Chapter 15

9

deployment allowance

Division 1 of Part 9 of Chapter 17

             (2)  In this regulation:

Determination means Defence Determination 2005/15, Conditions of Service, made under the Defence Act 1903, as in force on 31 May 2005.

Note:          Defence Determination 2005/15 is available on the Department of Defence website:  www.defence.gov.au/dpe/pac.

51‑42.01  Bonuses for early completion of an apprenticeship

             (1)  In this regulation:

expected completion date means the date on which an apprentice for a trade, occupation or kind of work would ordinarily be expected to complete an apprenticeship for that trade, occupation or kind of work.

full‑time apprentice means an apprentice whose ordinary hours of employment in a trade, occupation or kind of work, incorporating both work and training components, are at least equal to those hours which are regarded as full‑time for an apprentice in that trade, occupation or kind of work.

part‑time apprentice means an apprentice whose ordinary hours of employment in a trade, occupation or kind of work, incorporating both work and training components, are less than those hours worked by a full‑time apprentice in that industry, trade, occupation or kind of work.

             (2)  For section 51‑42 of the Act, the early completion bonus program administered by the Government of the State of Queensland is specified.

Note:          Information about the early completion bonus program can be found at the following website http://www.trainandemploy.qld.gov.au.

             (3)  For paragraph 51‑42(2)(a) of the Act, version 3 of the eligible skill shortage occupation list dated 17 March 2008, which is administered by the Government of the State of Queensland and set out at http://www.trainandemploy.qld.gov.au, is specified.

             (4)  For paragraph 51‑42(2)(b) of the Act, the following timeframe is specified:

                     (a)  for a full‑time apprentice—at least 6 months before the expected completion date;

                     (b)  for a part‑time apprentice—at least 12 months before the expected completion date.

Division 61Generally applicable tax offsets

Subdivision 61‑GPrivate health insurance offset complementary to Part 2‑2 of the Private Health Insurance Act 2007

61‑220.01  Definitions for Subdivision 61‑G

                   In this Subdivision:

complying health insurance policy has the meaning given by the Private Health Insurance Act 2007.

PHIIB (short for Private Health Insurance Incentive Beneficiary) has the meaning given by the Private Health Insurance Act 2007.

private health insurer has the meaning given by the Private Health Insurance Act 2007.

61‑220.02  Private health insurer to provide annual statement to PHIIB

             (1)  A private health insurer for a complying health insurance policy must provide to each PHIIB insured under the policy during a financial year, before 15 July of the following financial year, a statement in the approved form about the policy.

Note:          For approved form, see section 995‑1 of the Act.

             (2)  The statement may include information in relation to the following:

                     (a)  the complying health insurance policy held by the PHIIB and payments made under the policy;

                     (b)  the premium, or amounts in respect of the premium, paid during the financial year in relation to the policy;

                     (c)  any reductions of the premium payable, or an amount payable, during the financial year.

Division 70Trading stock

70‑55.01  Cost of natural increase of live stock—paragraph 70‑55(1)(b) of Act

                   For paragraph 70‑55(1)(b) of the Act, the cost prescribed for each animal in a class of live stock set out in column 1 of the following table is the amount applicable to that class in column 2 of the table.

 

Column 1
Class of live stock

Column 2
Cost
$

cattle

20.00

deer

20.00

emus

8.00

goats

4.00

horses

20.00

pigs

12.00

poultry

0.35

sheep

4.00

Note:          For the cost prescribed for natural increase occurring before the 1997‑98 year of income, see subregulation 10(3) of the Income Tax Regulations.

Division 83AEmployee share schemes

83A‑5.01  Object of Division 83A

                   For Division 83A of the Act, this Division preserves rules under the former Division 13A of Part III of the Income Tax Assessment Act 1936 about valuing unlisted rights to acquire shares under an employee share scheme.

83A‑315.01  Determining the value of a right

             (1)  For subsection 83A‑315 of the Act, the amount, in relation to an unlisted right that must be exercised within 10 years after the day when the beneficial interest in the right was acquired is, at the choice of the individual:

                     (a)  the market value of the right; or

                     (b)  the amount determined by the application of regulations 83A‑315.02 to 83A‑315.09.

             (2)  However, if the ESS deferred taxing point for an ESS interest is:

                     (a)  the day when the individual disposes of the interest (other than by exercising the right); or

                     (b)  if the individual exercises the right—the day when the individual disposes of the beneficial interest in the share;

the amount is the market value of the right or share.

83A‑315.02  Valuing unlisted rights

             (1)  If a right is not quoted on an approved stock exchange on a particular day, the value of the right is the greater of:

                     (a)  the market value, on the day, of the share that may be acquired by exercising the right, less the lowest amount that must be paid to exercise the right to acquire the beneficial interest in the share; and

                     (b)  subject to regulation 83A‑315.03, the value determined in accordance with regulations 83A‑315.05 to 83A‑315.09.

             (2)  In determining the value of a right, anything that would prevent or restrict conversion of the right to money is to be disregarded.

83A‑315.03  Exercise price of right nil or can not be determined

                   If the lowest amount that must be paid to exercise a right to acquire a beneficial interest in a share is nil or can not be determined, the value of the right on a particular day is the same as the market value of the share on that day.

83A‑315.04  Value of beneficial interests

                   To avoid doubt, if an individual acquires the beneficial interest in a share or right, the value that is applicable for the purposes of this Division is the value of the share or right, not the value of the interest in the share or right.

83A‑315.05  Outline of remainder of Division

                   The remainder of this Division sets out the method of calculating, for the purposes of paragraph 83A‑315.02(1)(b)  the value, on a particular day, of a right to acquire the beneficial interest in a share.

83A‑315.06  Step 1—calculate the calculation percentage

                   Apply the following formula. The result is the calculation percentage.

83A‑315.07  Step 2—how to use calculation percentage

             (1)  If the calculation percentage is less than 50%, the value of the right is nil.

             (2)  If the calculation percentage is equal to, or greater than, 50% but less than 110%, go to the instructions for using Table 1 in regulation 83A‑315.08 that are set out below that Table.

             (3)  If the calculation percentage is equal to, or greater than, 110%, go to the instructions for using Table 2 in regulation 83A‑315.09 that are set out below that Table.

83A‑315.08  Table 1 and instructions

             (1)  The following is Table 1:

 

Exercise period (months)

Calculation percentage

50% to 60%

60% to 70%

70% to 75%

75% to 80%

80% to 85%

85% to 90%

90% to 92.5%

92.5% to 95%

108 to 120

0.6%

2.1%

4.8%

6.7%

8.9%

11.4%

14.1%

15.5%

96 to 108

0.4%

1.5%

4.0%

5.8%

7.9%

10.3%

13.0%

14.5%

84 to 96

0.2%

1.1%

3.2%

4.8%

6.8%

9.2%

11.8%

13.3%

72 to 84

0.1%

0.7%

2.4%

3.8%

5.6%

7.9%

10.5%

11.9%

60 to 72

0.0%

0.4%

1.6%

2.8%

4.4%

6.5%

9.0%

10.4%

48 to 60

0.0%

0.1%

0.9%

1.8%

3.1%

4.9%

7.3%

8.6%

36 to 48

0.0%

0.0%

0.4%

0.9%

1.9%

3.3%

5.4%

6.6%

24 to 36

0.0%

0.0%

0.1%

0.3%

0.8%

1.8%

3.4%

4.4%

18 to 24

0.0%

0.0%

0.0%

0.1%

0.4%

1.0%

2.3%

3.2%

12 to 18

0.0%

0.0%

0.0%

0.0%

0.1%

0.4%

1.3%

2.0%

9 to 12

0.0%

0.0%

0.0%

0.0%

0.0%

0.2%

0.8%

1.3%

6 to 9

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.3%

0.7%

3 to 6

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.2%

0 to 3

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

 

Exercise period (months)

Calculation percentage

95% to 97.5%

97.5% to 100%

100% to 102.5%

102.5% to 105%

105% to 107.5%

107.5% to 110%

108 to 120

16.9%

18.4%

20.0%

21.5%

23.1%

24.7%

96 to 108

15.9%

17.5%

19.0%

20.6%

22.2%

23.9%

84 to 96

14.8%

16.3%

17.9%

19.5%

21.2%

22.9%

72 to 84

13.4%

15.0%

16.6%

18.2%

19.9%

21.7%

60 to 72

11.8%

13.4%

15.0%

16.7%

18.5%

20.3%

48 to 60

10.1%

11.6%

13.2%

14.9%

16.7%

18.6%

36 to 48

8.0%

9.5%

11.1%

12.9%

14.7%

16.5%

24 to 36

5.7%

7.1%

8.7%

10.4%

12.2%

14.1%

18 to 24

4.4%

5.7%

7.2%

8.9%

10.8%

12.7%

12 to 18

2.9%

4.1%

5.6%

7.3%

9.1%

11.2%

9 to 12

2.2%

3.3%

4.7%

6.3%

8.2%

10.3%

6 to 9

1.4%

2.3%

3.6%

5.3%

7.2%

9.4%

3 to 6

0.5%

1.2%

2.4%

4.1%

6.1%

8.4%

0 to 3

0.1%

0.4%

1.3%

3.0%

5.3%

7.8%

             (2)  From Table 1, select the percentage (the Table 1 percentage) that corresponds to:

                     (a)  the period, in months, from the particular day until the last day on which the right may be exercised (the exercise period); and

                     (b)  the calculation percentage;

and then multiply the amount, or lowest amount, that must be paid to exercise the right by the Table 1 percentage. The result is the value of the right.

83A‑315.09  Table 2 and instructions

             (1)  The following is Table 2:

 

Exercise period (months)

Column 1

Column 2

108 to 120

24.7%

0.6%

96 to 108

23.9%

0.6%

84 to 96

22.9%

0.7%

72 to 84

21.7%

0.7%

60 to 72

20.3%

0.7%

48 to 60

18.6%

0.7%

36 to 48

16.5%

0.8%

24 to 36

14.1%

0.8%

18 to 24

12.7%

0.8%

12 to 18

11.2%

0.9%

9 to 12

10.3%

0.9%

6 to 9

9.4%

0.9%

3 to 6

8.4%

0.9%

0 to 3

7.8%

1.0%

             (2)  From column 1 of Table 2, select the percentage that corresponds to the period, in months, from the particular day until the last day on which the right may be exercised (the exercise period). This percentage is called the base percentage.

             (3)  From column 2 of Table 2, select the percentage that corresponds to the exercise period. This percentage is called the additional percentage.

             (4)  Work out the result of the following formula. Disregard any fraction. The result is called the excess.

             (5)  The value of the right is the amount worked out using the following formula:

             (6)  If:

                     (a)  the exercise period; or

                     (b)  the calculation percentage in relation to a particular right;

is the top of one range in Table 1 or 2 and is also the bottom of another range in that Table, it is taken to be in the lower range and not in the higher range.

Part 2ASpecialist liability rules

Division 230Taxation of financial arrangements

230‑355.01  Recording requirements

                   For paragraph 230‑355(3)(b) of the Act, the record mentioned in paragraph 230‑355(1)(c) of the Act must be made or in place by the later of:

                     (a)  the time, or soon after the time, the hedging financial arrangement is created, acquired or applied; and

                     (b)  30 June 2011.

Division 290Contributions to superannuation funds

Subdivision 290‑CDeducting personal contributions

290‑170.01  Notice of intent to deduct contributions—contributions‑splitting applications

                   For subparagraph 290‑170(2)(d)(i) of the Act, each of the following is a contributions‑splitting application:

                     (a)  an application under regulation 6.44 of the SIS Regulations;

                     (b)  an application under regulation 4.41 of the RSA Regulations;

                     (c)  an application to deal with an amount in a way that would result in the amount becoming a contributions‑splitting superannuation benefit in accordance with the SIS Regulations or the RSA Regulations.

Division 292Excess contributions tax

Subdivision 292‑BExcess concessional contributions tax

292‑25.01  Concessional contributions for a financial year

             (1)  For subsection 292‑25(3) of the Act, this regulation sets out conditions for the purpose of allocating an amount in a complying superannuation plan.

Note:          The effect of subsection 292‑25(3) of the Act is that an amount in a complying superannuation plan is covered under that subsection if it is allocated by the superannuation provider in relation to the plan for the year in accordance with conditions specified in the Regulations.

             (2)  Subject to subregulation (3), an amount that is:

                     (a)  allocated under Division 7.2 of the SIS Regulations; and

                     (b)  an assessable contribution under Subdivision 295‑C of the Act;

is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 292‑25(3) of the Act.

             (3)  Each of the following amounts is to be treated as not having been allocated by the superannuation provider in a way that is covered by subsection 292‑25(3) of the Act, even if subregulation (2) would also apply to the amount:

                     (a)  an amount mentioned in item 2 of the table in subsection 295‑190(1) of the Act;

                     (b)  an amount mentioned in subsection 295‑200(2) of the Act;

                     (c)  a contribution made to a constitutionally protected fund.

             (4)  An amount that is allocated from a reserve, other than an amount that is covered by subregulation (2), is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 292‑25(3) of the Act:

                     (a)  unless:

                              (i)  the amount is allocated, in a fair and reasonable manner:

                                        (A)  to an account for every member of the complying superannuation plan; or

                                        (B)  if the member is a member of a class of members of the complying superannuation plan, and the amount in the reserve relates only to that class of members—to an account for every member of the class; and

                             (ii)  the amount that is allocated for the financial year is less than 5% of the value of the member’s interest in the complying superannuation plan at the time of allocation; or

                     (b)  unless:

                              (i)  the amount is allocated from a reserve used solely for the purpose of enabling the fund to discharge all or part of its liabilities (contingent or not), as soon as they become due, in respect of superannuation income stream benefits that are payable by the fund at that time; and

                             (ii)  any of the following applies:

                                        (A)  the amount has been allocated to satisfy a pension liability of the plan paid during the financial year;

                                        (B)  on the commutation of the income stream, except as a result of the death of the primary beneficiary, the amount is allocated to the recipient of the income stream, to commence another income stream, as soon as practicable;

                                        (C)  on the commutation of the income stream as a result of the death of the primary beneficiary, the amount:

                                                     (I)   is allocated to a death benefits dependant to discharge liabilities in respect of a superannuation income stream benefit that is payable by the plan as a result of the death; or

                                                    (II)   if sub‑sub‑subparagraph (I) does not apply—is paid as a superannuation lump sum and as a superannuation death benefit;

                                               as soon as practicable.

             (5)  Paragraph (4)(a) does not apply to an amount that:

                     (a)  is required to be allocated under subregulation (2); or

                     (b)  would be assessable income of the plan if it were made as a contribution.

             (6)  If the amount has been allocated from a reserve in lieu of a contribution to the fund (less any allowance for tax) which would have been assessable income of the fund, the amount that is allocated is to be multiplied by 1.176.

Example:    An employer has an obligation to make a $1 000 contribution. Instead of the employer making a contribution to the fund, the trustee allocates $850 to the member’s account (which is an amount equivalent to the amount that would be credited to the account after tax was paid).

                   For subregulation (6), the amount of $850 is to be multiplied by 1.176 to work out the amount that is taken to be allocated.

Subdivision 292‑CExcess non‑concessional contributions tax

292‑90.01  Non‑concessional contributions for a financial year

             (1)  For paragraph 292‑90(4)(a) of the Act, this regulation sets out conditions for the purpose of allocating an amount in a complying superannuation plan.

Note:          The effect of paragraph 292‑90(4)(a) of the Act is that an amount is covered under that subsection if it is an amount in a complying superannuation plan that is allocated by the superannuation provider in relation to the plan for the year in accordance with conditions specified in the Regulations.

             (2)  Subject to subregulation (3), an amount that:

                     (a)  is allocated under Division 7.2 of the SIS Regulations; and

                     (b)  is not assessable contributions under Subdivision 295‑C of the Act;

is to be treated as having been allocated by the superannuation provider in a way that is covered by paragraph 292‑90(4)(a) of the Act.

             (3)  Each of the following amounts is to be treated as not having been allocated by the superannuation provider in a way that is covered by paragraph 292‑90(4)(a) of the Act, even if subregulation (2) would also apply to the amount:

                     (a)  a Government co‑contribution made under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003;

                     (b)  a contribution covered under section 292‑95 of the Act;

                     (c)  a contribution covered under section 292‑100 of the Act, to the extent that it does not exceed the CGT cap amount when it is made;

                     (d)  a contribution made to a constitutionally protected fund (other than a contribution included in the contributions segment of the member’s superannuation interest in the fund);

                     (e)  contributions not included in the assessable income of the superannuation provider in relation to the superannuation plan because of a choice made under section 295‑180 of the Act;

                      (f)  a contribution that is a roll‑over superannuation benefit;

                     (g)  the tax free component of a directed termination payment (within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997) made in the financial year on behalf of the member.

Subdivision 292‑DModifications for defined benefit interests

292‑170.01  Definitions

                   In this Subdivision:

employer‑sponsor has the meaning given by subsection 16(1) of the SIS Act.

RSE licensee has the same meaning as in the SIS Act.

sub‑fund, in relation to a defined benefit member of a superannuation fund, means an arrangement in the fund which satisfies the following conditions:

                     (a)  there are separately identifiable assets and separately identifiable beneficiaries;

                     (b)  the interest of each beneficiary is determined by reference only to the conditions governing that arrangement;

                     (c)  all defined benefit members have the same employer‑ sponsor;

                     (d)  the employer‑sponsor deals with each of the defined benefit members at arm’s length.

superannuation fund includes a reference to a sub‑fund relating to a defined benefit member or defined benefit members of the fund.

292‑170.02  Notional taxed contributions—contributions for funds with 5 or more defined benefit members

             (1)  For subsection 292‑170(1) of the Act, this regulation explains the meaning of notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund:

                     (a)  that has 5 or more defined benefit members; or

                     (b)  to which subregulation (3), (4), (5) or (6) applies.

             (2)  The notional taxed contributions are the contributions that are determined by the trustee to be notional taxed contributions, using the method set out in Schedule 1A.

             (3)  If a superannuation fund has 5 or more defined benefit members on 1 July 2007, subregulation (2) is taken to continue to apply in relation to the fund even if the number of defined benefit members of the fund becomes less than 5 at any time on or after 1 July 2007.

             (4)  If:

                     (a)  a superannuation fund had 5 or more defined benefit members at any time before 1 July 2007; and

                     (b)  the fund had fewer than 5 defined benefit members on 1 July 2007; and

                     (c)  the fund had been in existence for 5 or more years at 1 July 2007; and

                     (d)  the trustee of the fund is an RSE licensee; and

                     (e)  the employer‑sponsor deals with each of the defined benefit members at arm’s length;

subregulation (2) is taken to apply in relation to the fund.

             (5)  If:

                     (a)  a superannuation fund (fund 1) satisfies the conditions in subregulation (3) or (4); and

                     (b)  the defined benefit members of the fund are transferred to another fund (fund 2) on or after 1 July 2007 (whether directly or through a series of transfers between superannuation funds); and

                     (c)  the trustee of fund 2 is an RSE licensee; and

                     (d)  the employer‑sponsor deals with each of the defined benefit members of fund 2 at arm’s length;

subregulation (2) is taken to apply in relation to fund 2.

             (6)  If:

                     (a)  a superannuation fund has no defined benefit members on 30 June 2007; and

                     (b)  a person becomes a defined benefit member of the fund after that date;

subregulation (2) is taken not to apply in relation to the fund unless the number of defined benefit members (including the person) is at least 50 and the employer‑sponsor of the fund deals with each of the defined benefit members at arm’s length.

292‑170.03  Notional taxed contributions—contributions for funds where regulation 292‑170.02 does not apply

             (1)  For subsection 292‑170(1) of the Act, this regulation explains the meaning of notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund if regulation 292‑170.02 does not apply.

             (2)  If the trustee receives a contribution in a month, the trustee must allocate the contribution to a member of the fund:

                     (a)  within 28 days after the end of the month; or

                     (b)  if it is not reasonably practicable to comply with paragraph (a)—within a longer period that is reasonable in the circumstances.

             (3)  For subregulation (2), the trustee must allocate the contribution having regard to the present and prospective liabilities of the fund to its members.

             (4)  The notional taxed contributions are the amounts of assessable contributions under Subdivision 295‑C of the Act which have been allocated to the member in the financial year.

             (5)  An amount that is allocated from a reserve is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 292‑25(3) of the Act unless:

                     (a)  the amount is allocated from a reserve used solely for the purpose of enabling the fund to discharge all or part of its liabilities (contingent or not), as soon as they become due, in respect of superannuation income stream benefits that are payable by the fund at that time; and

                     (b)  any of the following applies:

                              (i)  the amount has been allocated to satisfy a pension liability of the plan paid during the financial year;

                             (ii)  on the commutation of the income stream, except as a result of the death of the primary beneficiary, the amount is allocated to the recipient of the income stream, to commence another income stream, as soon as practicable;

                            (iii)  on the commutation of the income stream as a result of the death of the primary beneficiary, the amount:

                                        (A)  is allocated to a death benefits dependant to discharge liabilities in respect of a superannuation income stream benefit that is payable by the plan as a result of the death; or

                                        (B)  if sub‑subparagraph (A) does not apply—is paid as a superannuation lump sum and as a superannuation death benefit;

                                   as soon as practicable.

             (6)  If the amount has been allocated from a reserve in lieu of a contribution to the fund (less any allowance for tax) which would have been assessable income of the fund, the amount that is allocated is to be multiplied by 1.176.

Example:    An employer has an obligation to make a $1 000 contribution. Instead of the employer making a contribution to the fund, the trustee allocates $850 to the member’s account (which is an amount equivalent to the amount that would be credited to the account after tax was paid).

                   For subregulation (6), the amount of $850 is to be multiplied by 1.176 to work out the amount that is taken to be allocated.

292‑170.04  Notional taxed contributions—nil amount

             (1)  For subsection 292‑170(4) of the Act, this regulation sets out circumstances in which the amount of the notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund is nil.

             (2)  A circumstance is that:

                     (a)  the defined benefit interest is held in a public sector superannuation scheme; and

                     (b)  none of the interest is sourced to any extent from:

                              (i)  contributions made into a superannuation fund; or

                             (ii)  earnings on such contributions;

                            unless the interest is an element taxed in the fund that is attributable to 1 or more roll‑over superannuation benefits.

             (3)  A circumstance is that, for the whole of the financial year:

                     (a)  subregulation 292‑170.02(2) applied, or was taken to have applied, in relation to the superannuation fund; and

                     (b)  the member was a non‑accruing member of the fund for the financial year (see subregulations (4) to (6)).

             (4)  The member was a non‑accruing member of the fund for the financial year if the member had no membership of the fund during the financial year other than membership as:

                     (a)  an on‑hold member; or

                     (b)  a pensioned member.

Note:          A person could be an on‑hold member of a fund for part of a financial year, and a pensioned member of the fund for another part of the financial year.

             (5)  The member was an on‑hold member of the fund if:

                     (a)  the member had a benefit entitlement in the fund, but no employer‑provided benefits accrued to the member; and

                     (b)  the rules of the fund provided that the benefit:

                              (i)  was not to increase in nominal terms; or

                             (ii)  was to increase at a rate reflecting general price increases (for example, in accordance with the Consumer Price Index); or

                            (iii)  was to increase at a rate reflecting the general level of salary growth or salary growth for relevant fund membership (for example, in accordance with average weekly earnings, or average weekly ordinary time earnings, published by the Australian Statistician); or

                            (iv)  was to increase at the rate (if any) at which the salary on which the member’s benefit was based increased; or

                             (v)  was to increase at a rate reflecting the earning rate of the assets of the fund or the part of the fund to which the member belonged; or

                            (vi)  in the case of a deferred benefit—was to increase at a rate reflecting any reduction in the expected period in which pension payments were to be made and any deferral of the date when payments would start; or

                           (vii)  was to increase at a regular rate, or a rate worked out using a formula, that an actuary considered would not result in an increase that was more than the greatest of the increases mentioned in subparagraphs (i) to (vi).

          (5A)  The member was a pensioned member of the fund if:

                     (a)  the member’s membership of the fund consisted only of the member receiving pension payments from the superannuation fund; and

                     (b)  any of the following applied:

                              (i)  the pension payments were always the same amount;

                             (ii)  the pension payments were paid from an account that related only to the member, and no employer contributions were paid to the account for the benefit of the member;

                            (iii)  the pension payments increased at rates that were consistent with the rates prescribed under the rules of the fund that applied when the pension commenced to be paid.

             (6)  For the purposes of determining whether a defined benefit member is a non‑accruing member of the fund for a period, any employer contributions paid to the fund for the period to meet partially, or wholly, unfunded benefit liabilities of the fund are not to be treated as employer contributions for the benefit of the member for the period.

292‑170.05  Notional taxed contributions—other conditions (paragraph 292‑170(6)(d) of the Act)

             (1)  For paragraph 292‑170(6)(d) of the Act, this regulation:

                     (a)  applies in relation to a superannuation fund in relation to which subregulation 292‑170.02(2) applies, or is taken to apply; and

                     (b)  sets out the conditions that are to be satisfied in relation to establishing whether notional taxed contributions for a financial year in respect of a defined benefit interest are equal to the concessional contributions cap for the financial year.

Note:          Subsection 292‑170(6) of the Act explains when a member’s notional taxed contributions for the financial year in respect of a defined benefit interest are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

             (2)  A condition is that between 5 September 2006 and the time at which the new entrant rate for the defined benefit member is worked out using Schedule 1A:

                     (a)  the rules of the superannuation fund have not changed to improve the member’s benefit; and

                     (b)  either:

                              (i)  the member has not moved to a new benefit category; or

                             (ii)  if the member has moved to a new benefit category, the new benefit category does not provide the member with an improved level of benefit.

             (3)  A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

                     (a)  has not increased since it was first worked out using Schedule 1A; or

                     (b)  has increased since it was first worked out using Schedule 1A only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (4)  A condition is that the method of calculating superannuation salary:

                     (a)  has not been changed, in a way that would increase the salary, since 5 September 2006; or

                     (b)  has changed since 5 September 2006 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (5)  If the rate of superannuation salary has increased, since 5 September 2006, by:

                     (a)  more than 50% in 1 year; or

                     (b)  more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

             (6)  A condition is that the trustee or employer‑sponsor of the superannuation fund has not exercised a discretion to pay a benefit that is greater than the benefit that was assumed for the purpose of calculating the new entrant rate since 5 September 2006.

             (7)  For subregulation (5), a trustee must notify the Commissioner, in writing, of an increase in the rate of superannuation salary that exceeds the rate specified in paragraph (5)(a) or (b) as soon as practicable after the increase occurs.

             (8)  If:

                     (a)  a condition mentioned in paragraph (2)(b) or subregulation (3) is not satisfied; and

                     (b)  the condition was not satisfied only because:

                              (i)  the defined benefit member moved to a new benefit category; and

                             (ii)  the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

                            (iii)  the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied.

292‑170.06  Notional taxed contributions—other conditions (subparagraph 292‑170(7)(e)(ii) of the Act)

             (1)  For subparagraph 292‑170(7)(e)(ii) of the Act, this regulation:

                     (a)  applies in relation to a superannuation fund in relation to which subregulation 292‑170.02(2) applies, or is taken to apply; and

                     (b)  sets out the conditions that are to be satisfied in relation to establishing whether notional taxed contributions for a financial year in respect of a defined benefit interest are equal to the concessional contributions cap for the financial year.

Note:          Subsection 292‑170(7) of the Act explains when a member’s notional taxed contributions for the financial year in respect of a defined benefit interest that has been transferred to another fund are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

             (2)  A condition is that between 5 September 2006 and the time at which the new entrant rate for the defined benefit member is worked out using Schedule 1A:

                     (a)  the rules of the superannuation fund have not changed to improve the member’s benefit; and

                     (b)  either:

                              (i)  the member has not moved to a new benefit category; or

                             (ii)  if the member has moved to a new benefit category, the new benefit category does not provide the member with an improved level of benefit.

             (3)  A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

                     (a)  has not increased since it was first worked out using Schedule 1A; or

                     (b)  has increased since it was first worked out using Schedule 1A only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (4)  A condition is that the method of calculating superannuation salary:

                     (a)  has not been changed, in a way that would increase the salary, since 5 September 2006; or

                     (b)  has changed since 5 September 2006 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (5)  If the rate of superannuation salary has increased, since 5 September 2006, by:

                     (a)  more than 50% in 1 year; or

                     (b)  more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

             (6)  A condition is that the trustee or employer‑sponsor of the superannuation fund has not exercised a discretion to pay a benefit that is greater than the benefit that was assumed for the purpose of calculating the new entrant rate since 5 September 2006.

             (7)  For subregulation (5), a trustee must notify the Commissioner, in writing, of an increase in the rate of superannuation salary that exceeds the rate specified in paragraph (5)(a) or (b) as soon as practicable after the increase occurs.

             (8)  If:

                     (a)  a condition mentioned in paragraph (2) b) or subregulation (3) is not satisfied; and

                     (b)  the condition was not satisfied only because:

                              (i)  the defined benefit member moved to a new benefit category; and

                             (ii)  the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

                            (iii)  the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied.

292‑170.07  Notional taxed contributions—other conditions (paragraph 292‑170(8)(d) of the Act)

             (1)  For paragraph 292‑170(8)(d) of the Act, this regulation:

                     (a)  applies to a superannuation fund if a defined benefit member of the fund is a person to whom subregulation 292‑170.02(2) applies, or is taken to apply; and

                     (b)  sets out the conditions that are to be satisfied in relation to establishing whether the defined benefit member’s notional taxed contributions for a financial year for a defined benefit interest are equal to the concessional contributions cap for the financial year.

Note:          Subsection 292‑170(8) of the Act explains when a member’s notional taxed contributions for the financial year, in respect of a defined benefit interest, are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

             (2)  A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

                     (a)  has not increased since 12 May 2009; or

                     (b)  has increased since 12 May 2009 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (3)  A condition is that the method of calculating superannuation salary:

                     (a)  has not been changed, in a way that would increase the member’s salary, since 12 May 2009; or

                     (b)  has changed since 12 May 2009 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (4)  If the rate of superannuation salary has increased, since 12 May 2009, by:

                     (a)  more than 50% in 1 year; or

                     (b)  more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

             (5)  A condition is that the trustee or employer‑sponsor of the superannuation fund has not exercised a discretion to pay a benefit that is greater than the benefit that was assumed for the purpose of calculating the new entrant rate since 12 May 2009.

             (6)  For subregulation (4), a trustee must notify the Commissioner, in writing, of an increase in the rate of superannuation salary that exceeds the rate specified in paragraph (4)(a) or (b) as soon as practicable after the increase occurs.

             (7)  If:

                     (a)  a condition mentioned in subregulation (2) is not satisfied; and

                     (b)  the condition was not satisfied only because:

                              (i)  the defined benefit member moved to a new benefit category; and

                             (ii)  the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

                            (iii)  the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied for the 2009–2010 financial year and subsequent financial years.

292‑170.08  Notional taxed contributions—other conditions (subparagraph 292‑170(9)(e)(ii) of the Act)

             (1)  For subparagraph 292‑170(9)(e)(ii) of the Act, this regulation:

                     (a)  applies to a superannuation fund if a defined benefit member of the fund is a person to whom subregulation 292‑170.02(2) applies, or is taken to apply; and

                     (b)  sets out the conditions that are to be satisfied in relation to establishing whether notional taxed contributions for a financial year for a defined benefit interest are equal to the concessional contributions cap for the financial year.

Note:          Subsection 292‑170(9) of the Act explains when a member’s notional taxed contributions for the financial year, in respect of a defined benefit interest that has been transferred to another fund, are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

             (2)  A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

                     (a)  has not increased since 12 May 2009; or

                     (b)  has increased since 12 May 2009 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (3)  A condition is that the method of calculating superannuation salary:

                     (a)  has not been changed, in a way that would increase the salary, since 12 May 2009 or

                     (b)  has changed since 12 May 2009 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

             (4)  If the rate of superannuation salary has increased, since 12 May 2009, by:

                     (a)  more than 50% in 1 year; or

                     (b)  more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

             (5)  A condition is that the trustee or employer‑sponsor of the superannuation fund has not exercised a discretion to pay a benefit that is greater than the benefit that was assumed for the purpose of calculating the new entrant rate since 12 May 2009.

             (6)  For subregulation (4), a trustee must notify the Commissioner, in writing, of an increase in the rate of superannuation salary that exceeds the rate specified in paragraph (4)(a) or (b) as soon as practicable after the increase occurs.

             (7)  If:

                     (a)  a condition mentioned in subregulation (2) is not satisfied; and

                     (b)  the condition was not satisfied only because:

                              (i)  the defined benefit member moved to a new benefit category; and

                             (ii)  the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

                            (iii)  the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied for the 2009–2010 financial year and subsequent financial years.

Division 293Sustaining the superannuation contribution concession

Subdivision 293‑DModifications for defined benefit interests

293‑115.01  Method of determining amount of defined benefit contributions

                   For subsection 293‑115(1) of the Act, the amount of defined benefit contributions for an individual in the 2012‑2013 financial year in respect of a defined benefit interest is the individual’s notional taxed contributions for the defined benefit interest for that financial year.

Note:          The amount of defined benefit contributions in respect of a defined benefit interest in a constitutionally protected fund is nil for the 2012‑2013 financial year.

Subdivision 293‑DAFurther modifications for defined benefit interests

293‑115.05  Preliminary

             (1)  This Subdivision:

                     (a)  is made for subsection 293‑115(1) of the Act; and

                     (b)  applies in relation to the 2013‑14 financial year and later financial years.

             (2)  In this Subdivision:

accruing member, of a superannuation fund for a financial year, means a defined benefit member of the fund who is not a non‑accruing member of the fund for the financial year.

non‑accruing member, of a superannuation fund for a financial year, means a defined benefit member who is a non‑accruing member of the fund for the financial year within the meaning of subregulations 292‑170.04(4) to (5A) as if a reference in those subregulations to a member included a reference to a member of a constitutionally protected fund.

293‑115.10  Defined benefit contributionsnon‑accruing members

             (1)  This regulation applies if you are a non‑accruing member of a superannuation fund for a financial year.

             (2)  Your defined benefit contributions for the financial year in respect of your defined benefit interest in the fund is nil.

293‑115.15  Defined benefit contributionsaccruing members with funded benefit interests

             (1)  This regulation applies if:

                     (a)  you are an accruing member of a superannuation fund for the financial year; and

                     (b)  your defined benefit interest in the fund for the financial year is a funded benefit interest.

             (2)  The interest is a funded benefit interest if:

                     (a)  the interest is in a complying superannuation fund that is not a constitutionally protected fund; and

                     (b)  if the interest is in a public sector superannuation scheme:

                              (i)  the fund trustee has certified, for the financial year, that the fund trustee considers that the scheme will only ever pay superannuation benefits from contributions made to the scheme or earnings from the contributions; and

                             (ii)  the fund trustee has not chosen, under section 295‑180 of the Act, to have contributions made by you, or on your behalf, excluded from the assessable income of the scheme for the financial year.

             (3)  Your defined benefit contributions for the financial year in respect of the interest is your notional taxed contributions for the year in respect of the interest.

Note:          For notional taxed contributions, see section 291‑170 of the Act and Subdivision 292‑D of these regulations.

             (4)  In working out your notional taxed contributions for the purposes of subregulation (3), disregard Subdivision 291‑C of the Income Tax (Transitional Provisions) Act 1997.

293‑115.20  Defined benefit contributionsaccruing members with other interests

             (1)  This regulation applies if:

                     (a)  you are an accruing member of a superannuation fund for the financial year; and

                     (b)  your defined benefit interest in the fund for the financial year is an interest other than a funded benefit interest.

             (2)  Your defined benefit contributions for the financial year in respect of the interest is the amount worked out using the method in Schedule 1AA.

Subdivision 293‑EModifications for constitutionally protected State higher level office holders

293‑145.01  Constitutionally protected State higher level office holders

                   For paragraph 293‑145(1)(b) of the Act, the following individuals are declared:

                     (a)  a Minister of the government of a State;

                     (b)  a member of the staff of a Minister of the government of a State;

                     (c)  the Governor of a State;

                     (d)  a member of staff of the Governor of a State;

                     (e)  a member of the Parliament of a State;

                      (f)  the Clerk of a house of the Parliament of a State;

                     (g)  the head of a Department of the Public Service of a State or a statutory office holder of equivalent seniority, including a statutory office holder who is the head of an instrumentality or agency of a State;

                     (h)  a judge, justice or magistrate of the court of a State.

Division 295Taxation of superannuation entities

Subdivision 295‑DContributions excluded

295‑265.01  Application of pre‑1 July 1988 funding credits—limit on choice

             (1)  For paragraph 295‑265(7)(a) of the Act, this regulation prescribes the manner in which a superannuation provider in relation to a superannuation fund is to work out the amount applicable to the fund, under subsection 295‑265(6) of the Act, for an income year where the superannuation provider chooses, after 9 May 2006, to specify an amount for the purposes of subsection 295‑265(1) of the Act.

Method 1—Funding credit valuation process

             (2)  Method 1 must be used for an income year, unless:

                     (a)  the conditions mentioned in subregulation (7) for the use of method 2 are met; and

                     (b)  the actuary decides that the use of method 2 is appropriate.

             (3)  The amount applicable to the fund for an income year is the least of the following amounts:

                     (a)  the amount of pre1 July 1988 funding credits unused at the end of the previous income year;

                     (b)  the value of unfunded pre‑1 July 1988 liabilities at the first day of the income year, determined by an actuary in accordance with step 3 of method 1 or method 2;

                     (c)  the pre‑1 July 1988 taxable contributions for the income year, worked out in accordance with step 4 of method 1 or method 2;

                     (d)  for an income year that ended before 9 May 2006—the amount that the superannuation provider could specify under subsection 295‑265(1) of the Act under the legislation that applied to the income year.

             (4)  The amount identified in accordance with subregulation (3) must then be adjusted for all transfers of funding credits and relevant liabilities into or out of the fund.

             (5)  The procedure in method 1 for determining an amount applicable to a fund is referred to in this regulation as a funding credit valuation process.

             (6)  The amounts mentioned in paragraphs (3)(a), (b), (c) and (d), and the amount as adjusted under subregulation (4), must be certified by an actuary.

Method 2—Notionally updated funding credit valuation process

             (7)  The actuary may use method 2 for an income year if:

                     (a)  the actuary can identify, at the start of the income year, that the value of unfunded pre‑1 July 1988 liabilities exceeds the amount that the superannuation provider wishes to specify for subsection 295‑265(1) of the Act; and

                     (b)  the income year is the first year after, or the second year after, an income year for which method 1 was used to calculate the amount applicable to the fund.

             (8)  The procedure in method 2 for calculating an amount applicable to a fund is referred to in this regulation as a notionally updated funding credit valuation process.

Method 1  Funding credit valuation process

Step 1
(value liabilities)

1.1   For any income year in which funding credits are claimed, calculate the discounted present value of liabilities as at the first day of that income year that relates to membership completed.

1.2   The basis for the calculations in item 1.1 must be the actuarial valuation basis relevant to the income year in question which the superannuation fund’s actuary would consider appropriate for a valuation under Part 9 of the SIS Regulations.

1.3   In making the calculation in item 1.1 exclude the following liabilities that are not provided from taxable contributions:

(a) liabilities representing benefits financed by undeducted contributions;

 

(b) liabilities representing benefits or components that are expected to be treated as paid from an untaxed source;

Example:    Pensions provided on an emerging cost or pay as you go basis, with corresponding elections being made under subsection 295‑180(1) of the Act.

(c) liabilities for entitlements relating to membership and for which corresponding assets can be identified;

Example:    Fully funded productivity, superannuation guarantee or salary sacrifice account balances.

(d) liabilities representing death and disability benefits for which costs are claimed as deductible under section 295‑465 or 295‑470 of the Act.

1.4   Apportion the discounted present value of the liabilities, between:

(a) the period of superannuation fund membership completed before 1 July 1988; and

(b) the period of superannuation fund membership completed on and after 1 July 1988;

         for each superannuation fund member or former member for whom a liability is being valued.

1.5   The apportionment in item 1.4 must be made having regard to the following requirements and principles:

(a) superannuation fund membership must be consistent with the definition used by the fund to determine the benefit being valued;

(b) the actuary of the superannuation fund may use an alternative method for apportioning the discounted present value of liabilities only if the actuary certifies that the method will provide a reasonable approximation of the apportionment;

(c) the actuary will generally use a linear apportionment method, but may use an apportionment method that reflects non‑linear accrual of entitlements, provided the actuary considers that such an approach achieves an outcome that is consistent with the principle that funding credits can only be used against contributions intended to provide for entitlements relating to membership completed before 1 July 1988.

1.6   The actuary must retain documentation of the liability and valuation apportionment calculations for not less than 5 years.

1.7   The discounted present value of liabilities for all members apportioned to pre‑1 July 1988 membership is the value of pre‑1 July 1988 liabilities.

Step 2
(apportion assets)

 

2.1   Calculate the total amount of superannuation fund assets at their market value at the start of the income year, on the basis on which the superannuation fund’s actuary would consider appropriate for a valuation under Part 9 of the SIS Regulations.

2.2   Allow deductions for realisation costs and charges incurred in the normal course of operation of the superannuation fund.

2.3   Deduct the amount of assets that relate to excluded liabilities mentioned in item 1.3 of step 1 of this method.

2.4   All remaining assets should be treated as available to provide for the value of pre‑1 July 1988 liabilities unless the superannuation provider can provide the actuary with written evidence to support exclusion of both an amount of assets and a corresponding value of liabilities.

2.5   The actuary must retain documentation to support calculations made for the asset apportionment for not less than 5 years.

2.6   The result is the assets available to fund pre‑1 July 1988 liabilities for the income year.

Step 3
(unfunded pre‑1 July 1988 liabilities)

3.1   Deduct the assets available to fund pre‑1 July 1988 liabilities from the value of pre‑1 July 1988 liabilities.

3.2   The result is the value of unfunded pre‑1 July 1988 liabilities.

Step 4
(pre‑1 July 1988 taxable contributions)

4.1   The superannuation provider must notify to the actuary the amount of taxable contributions that are used to fund pre‑1 July 1988 liabilities for the income year.

4.2   The superannuation provider must retain documentation to support calculations of pre‑1 July 1988 taxable contributions for not less than 5 years.

4.3   The result is the pre‑1 July 1988 taxable contributions.

Method 2  Notionally updated funding credit valuation process

Step 1
(notionally update value of liabilities)

1.1   The actuary must notionally adjust the value of pre‑1 July 1988 liabilities from the start of the previous year to the start of the current income year, taking into account any factors likely to affect the value of the pre‑1 July 1988 liabilities.

1.2   In making a calculation under item 1.1 the actuary must have regard to the valuation basis that would be used by the fund if method 1 were being used.

 

1.3   In making a calculation under item 1.1 the actuary must have regard to actual experience gained from the operation of the fund if the experience is materially different from valuation assumptions used in the calculation of the previous pre‑1 July 1988 liabilities.

1.4   The actuary must retain documentation of the notional updating of the pre‑1 July 1988 liability valuation calculations for not less than 5 years.

1.5   The result is the notionally updated value of pre‑1 July 1988 liabilities for the income year.

Step 2
(notionally update apportionment of assets)

2.1   The actuary must notionally adjust the amount of the assets available to fund pre‑1 July 1988 liabilities, from the start of the previous year to the start of the current income year, taking into account any factors likely to affect the amount of the assets available to fund pre‑1 July 1988 liabilities.

2.2   Add taxable contributions allocated to fund pre‑1 July 1988 taxed liabilities in the previous income year.

2.3   Deduct the employer financed component of pre‑1 July 1988 taxed benefits paid out during the previous income year.

2.4   Add actual investment earnings net of the tax and expenses relating to investment income for the previous income year using a basis that is consistent with the underlying investment earnings achieved and normal practices of the superannuation fund.

2.5   The actuary must retain documentation to support notional updating of the amount of assets available to fund pre‑1 July 1988 liabilities for not less than 5 years.

2.6   The result is the notionally updated amount of assets available to fund pre‑1 July 1988 liabilities.

Step 3
(unfunded pre‑1 July 1988 liabilities)

3.1   Deduct the notionally updated amount of assets available to fund pre‑1 July 1988 liabilities from the notionally updated value of pre‑1 July 1988 liabilities.

3.2   The result is the value of unfunded pre‑1 July 1988 liabilities for the income year.

Step 4

(pre‑1 July 1988 taxable contributions)

4.1   The superannuation provider must notify to the actuary the amount of taxable contributions that are allocated to fund pre‑1 July 1988 liabilities for the income year.

4.2   The superannuation provider must retain documentation to support calculations of pre‑1 July 1988 taxable contributions for not less than 5 years.

4.3   The result is the pre‑1 July 1988 taxable contributions.

             (9)  If an actuary certifies an amount under subregulation (6) the actuary must, if requested by a superannuation provider, provide sufficient information to enable another actuary to check the certification.

           (10)  An actuary must, in making a calculation under or applying method 1 or 2:

                     (a)  follow any professional standards prepared by the Institute of Actuaries of Australia; and

                     (b)  have regard to any professional guidance notes prepared by the Institute of Actuaries of Australia;

that relate to the determination of accrued benefits mentioned in method 1 or 2.

           (11)  A superannuation provider must, if requested to do so, provide sufficient information to support a funding credit claim under subsection 295‑265(1) of the Act, including any relevant information that relates to an income year for which a claim was not made.

           (12)  In this regulation:

method 1 means the method described in the table, Method 1—Funding credit valuation process.

method 2 means the method described in the table, Method 2—Notionally updated funding credit valuation process.

Note:          actuary is defined in section 995‑1 of the Act.

Subdivision 295‑FExempt income

295‑385.01  Segregated current pension assets—prescribed superannuation income stream benefits

                   For section 295‑385 of the Act, the following superannuation income stream benefits are prescribed:

                     (a)  superannuation income stream benefits payable from:

                              (i)  an allocated pension within the meaning of the SIS Regulations; or

                             (ii)  a market linked pension within the meaning of the SIS Regulations; or

                            (iii)  an account‑based pension within the meaning of the SIS Regulations;

                     (b)  an amount taken to be the amount of a superannuation income stream benefit under subregulation 995‑1.01(3) or (4), where the superannuation income stream that was payable to the deceased mentioned in that subregulation was a pension mentioned in subparagraph (a)(i), (ii) or (iii).

Note:          This regulation is also mentioned in regulation 307‑205.02 to identify superannuation income streams to which that regulation does not apply.

Subdivision 295‑GDeductions

295‑465.01  Deductible portion of premiums

             (1)  For subsections 295‑465(1B) and (2A) of the Act, the proportion specified in an item in the table in relation to the insurance policy specified in the item may be treated:

                     (a)  as being attributable to the complying superannuation fund’s liability to provide benefits referred to in section 295‑460 of the Act; and

                     (b)  as being the amount the fund could reasonably be expected to pay, in an arm’s length transaction, to obtain an insurance policy to cover it for its current or contingent liabilities to provide benefits referred to in section 295‑460 of the Act.

 

Item

Insurance policy

Specified proportion %

1

TPD any occupation

100

2

TPD any occupation with one or more of the following inclusions:

(a) activities of daily living;

(b) cognitive loss;

(c) loss of limb;

(d) domestic (home) duties

100

3

TPD own occupation

67

4

TPD own occupation with one or more of the following inclusions:

(a) activities of daily living;

(b) cognitive loss;

(c) loss of limb;

(d) domestic (home) duties

67

5

TPD own occupation bundled with death (life) cover

80

6

TPD own occupation bundled with death (life) cover with one or more of the following inclusions:

(a) activities of daily living;

(b) cognitive loss;

(c) loss of limb;

(d) domestic (home) duties

80

             (2)  A specified proportion mentioned in the table in subregulation (1) will be deductible only if the conditions to which the insurance policy that relates to the proportion is subject are either more restrictive than or have substantially the same meaning as the conditions described in the definition of the policy in subregulation (5).

             (3)  If a member is required to meet a criterion to be eligible for a benefit under an insurance policy in addition to the criteria that are essential to the matters identified in the definition of the policy in subregulation (5), the additional criterion may be disregarded.

             (4)  The use of a specified proportion in the table in subregulation (1) in respect of a particular insurance policy is not affected by the inclusion in the insurance policy of a benefit payable to a member because a terminal medical condition exists in relation to the member.

             (5)  In this regulation:

activities of daily living means a component of a disability insurance policy that insures against a disability that results in a member’s total and permanent inability to perform at least 2 of the following activities of daily living without the assistance of another person:

                     (a)  bathing and showering;

                     (b)  dressing and undressing;

                     (c)  eating and drinking;

                     (d)  mobility, to the extent of being able to get in and out of bed or a chair, and move from place to place without using a wheelchair;

                     (e)  the ability to use a toilet.

bundled means a situation in which:

                     (a)  the TPD and death (life) components of the combined insurance premium are not separately identified; and

                     (b)  the amount payable to the insured person in relation to the TPD component does not exceed the amount payable in relation to the insured person in relation to the death (life) component.

cognitive loss means a component of a disability insurance policy that insures against a member suffering a permanent deterioration or loss of cognitive functioning or intellectual capacity that requires the person to be under the continuous care and supervision of another person.

death (life) cover means insurance against the liability to provide a superannuation death benefit within the meaning of the Act.

domestic (home) duties means a component of a disability insurance policy that insures against a disability that results in a member being:

                     (a)  unable to perform the member’s normal domestic duties; and

                     (b)  unable to leave the member’s home unaided; and

                     (c)  incapacitated to such an extent that the member is unlikely to ever engage in normal domestic duties or any gainful employment.

loss of limb means a component of a disability insurance policy that insures against the permanent loss of:

                     (a)  the sight in both the member’s eyes resulting in blindness; or

                     (b)  the use of two or more of the member’s limbs, feet or hands; or

                     (c)  the sight in one of the member’s eyes resulting in blindness in that eye and the use of one of the member’s limbs, feet or hands.

normal domestic duties means the tasks performed by an individual whose sole occupation is to maintain the individual’s family home, including;

                     (a)  unassisted cleaning of the individual’s home; and

                     (b)  cooking of meals for the individual’s family; and

                     (c)  doing the laundry for the individual’s family; and

                     (d)  shopping for food for the individual’s family; and

                     (e)  taking care of any dependent children.

TPD any occupation means insurance against the member suffering an illness or injury that is likely to result in the member’s permanent inability to engage in gainful employment for which the member is reasonably qualified by education, training or experience.

TPD own occupation means insurance against the member suffering an illness or injury that is likely to result in the member’s permanent inability to engage in gainful employment in the member’s own occupation, where inability to engage in gainful employment includes the inability to work otherwise than in a substantially reduced capacity to that in which the member worked before suffering the illness or injury.

Part 3Superannuation benefits paid from complying plans etc

Division 301Superannuation member benefits paid from complying plans etc

Subdivision 301‑DDeparting Australia superannuation payments

301‑170.01  Departing Australia superannuation payments

                   For subparagraph (b)(i) of the definition of departing Australia superannuation payment in section 301‑170 of the Act, the following regulations are prescribed:

                     (a)  regulations 6.20A, 6.20B and 6.24A of the SIS Regulations;

                     (b)  regulation 4.23A of the RSA Regulations.

Subdivision 301‑ESuperannuation lump sum member benefits less than $200

301‑225.01  Superannuation lump sum member benefits less than $200 are tax free

             (1)  For paragraph 301‑225(d) of the Act, this regulation sets out requirements in relation to a superannuation member benefit.

Note:          The effect of section 301‑225 of the Act is that a superannuation member benefit is not assessable income and is not exempt income in specified circumstances. One of the circumstances is that the requirements (if any) specified in the Regulations in relation to the benefit are satisfied.

             (2)  A requirement is that the member’s benefit must be released under:

                     (a)  item 104 or 111 of Part 1 of Schedule 1 to the SIS Regulations; or

                     (b)  item 211 of Part 2 of Schedule 1 to the SIS Regulations; or

                     (c)  item 111 of Schedule 2 to the RSA Regulations.

Division 302Superannuation death benefits paid from complying plans etc

Subdivision 302‑DDefinitions relating to dependants

302‑195  Circumstances in which a person died in the line of duty

             (1)  For subsection 302‑195(3) of the Act, the following subregulations sets out circumstances in which a deceased person mentioned in subsection 302‑195(2) of the Act (a military or police person) died in the line of duty:

                     (a)  in Australia or on overseas service—subregulations (2), (3), (4), (5), (9) or (10);

                     (b)  on overseas service—subregulations (6), (7) and (8).

Note:          When this regulation was made, subsection 302‑195(2) of the Act mentioned the following persons:

(a)    a member of the Defence Force;

(b)    a member of the Australian Federal Police;

(c)    a protective service officer within the meaning of the Australian Federal Police Act 1979;

(d)    a member of a State or Territory police force.

Performance of duties

             (2)  A circumstance is that the military or police person died while performing the duties of a military or police person.

             (3)  A circumstance is that:

                     (a)  the military or police person was off duty at the time of his or her death; and

                     (b)  his or her death occurred:

                              (i)  in the course of an attempt to arrest a suspected offender; or

                             (ii)  in the course of an attempt to prevent an offence; or

                            (iii)  in the course of an attempt to rescue a person; or

                            (iv)  while he or she was travelling to a place of work as a result of being recalled to duty.

Injury

             (4)  A circumstance is that the military or police person:

                     (a)  died within 12 months after sustaining an injury; and

                     (b)  died as a result of sustaining the injury; and

                     (c)  sustained the injury while performing the duties of a military or police person.

             (5)  A circumstance is that the military or police person:

                     (a)  was off duty at the time of sustaining an injury; and

                     (b)  sustained the injury:

                              (i)  in the course of an attempt to arrest a suspected offender; or

                             (ii)  in the course of an attempt to prevent an offence; or

                            (iii)  in the course of an attempt to rescue a person; or

                            (iv)  while he or she was travelling to a place of work as a result of being recalled to duty; and

                     (c)  died within 12 months after sustaining the injury; and

                     (d)  died as a result of sustaining the injury.

Overseas service

             (6)  A circumstance is that the military or police person:

                     (a)  was a member of the Defence Force; and

                     (b)  died while serving overseas, if the service was:

                              (i)  warlike service mentioned in paragraph 6(1)(a) of the Military Rehabilitation and Compensation Act 2004; or

                             (ii)  non‑warlike service mentioned in paragraph 6(1)(b) of the Military Rehabilitation and Compensation Act 2004.

             (7)  A circumstance is that the military or police person:

                     (a)  was a member of the Australian Federal Police or a protective service officer within the meaning of the Australian Federal Police Act 1979; and

                     (b)  died while serving overseas, if the service was:

                              (i)  at a place specified in a determination under subsection 40H(1) of the Australian Federal Police Act 1979; and

                             (ii)  on a peace‑keeping or capacity‑building mission.

             (8)  A circumstance is that the military or police person:

                     (a)  was a member of a State or Territory police force; and

                     (b)  died while serving overseas, if the service was:

                              (i)  undertaken as a special member of the Australian Federal Police under section 40E of the Australian Federal Police Act 1979; and

                             (ii)  on a peace‑keeping or capacity‑building mission.

Consequences of duties

             (9)  A circumstance is that, as a result of action taken because the person was a military or police person, the military or police person sustained an injury from which he or she died:

                     (a)  immediately; or

                     (b)  within 12 months after sustaining the injury.

Example:    The person was killed in retaliation for an action taken in his or her capacity as a military or police person.

Uncertainty about circumstances of death

           (10)  A circumstance is that:

                     (a)  the military or police person has died; and

                     (b)  it is not certain, after reasonable inquiry, whether the person died in a circumstance described in regulation 302‑195A.

Note:          If it is uncertain whether the death falls within regulation 302‑195A, the person will be taken to have died in the line of duty.

Interpretation

           (11)  For this regulation, the time when a military or police person is off duty includes a time when he or she is:

                     (a)  travelling to or from his or her place of work; or

                     (b)  on a rostered day off work; or

                     (c)  on leave from work.

302‑195A  Circumstances in which a person is taken not to have died in the line of duty

             (1)  This regulation sets out circumstances in which a person (a military or police person) mentioned in subsection 302‑195(2) of the Act is taken not to have died in the line of duty.

Note:          When this regulation was made, subsection 302‑195(2) of the Act mentioned the following persons:

(a)    a member of the Defence Force;

(b)    a member of the Australian Federal Police;

(c)    a protective service officer within the meaning of the Australian Federal Police Act 1979;

(d)    a member of a State or Territory police force.

Off duty

             (2)  A circumstance is that:

                     (a)  the military or police person was off duty at the time of his or her death; and

                     (b)  none of subregulations 302‑195(3), (6), (7), (8) and (9) applies.

             (3)  A circumstance is that:

                     (a)  the military or police person died as a result of sustaining an injury; and

                     (b)  the military or police person was off duty at the time of sustaining the injury; and

                     (c)  none of subregulations 302‑195(5), (6), (7), (8) and (9) applies.

Incidental activity

             (4)  A circumstance is that:

                     (a)  the military or police person’s death related to an activity that was not directly related to the performance of his or her duties; and

                     (b)  none of subregulations 302‑195(6), (7) and (8) applies.

Example:    Undertaking a sporting activity.

Death after retirement

             (5)  A circumstance is that:

                     (a)  the military or police person died after he or she retired as a military or police person; and

                     (b)  none of subregulations 302‑195(4), (5) and (9) applies.

Suicide

             (6)  A circumstance is that the military or police person died as a result of committing suicide.

Natural causes or disease

             (7)  A circumstance is that:

                     (a)  the military or police person died as a result of:

                              (i)  natural causes; or

                             (ii)  an illness or disease; and

                     (b)  none of subregulations 302‑195(6), (7) and (8) applies.

Interpretation

             (8)  For this regulation, the time when a military or police person is off duty includes a time when he or she is:

                     (a)  travelling to or from his or her place of work; or

                     (b)  on a rostered day off work; or

                     (c)  on leave from work.

302‑200.01  What is an interdependency relationship—matters to be taken into account

             (1)  For paragraph 302‑200(3)(a) of the Act, this regulation sets out matters that are to be taken into account in determining whether 2 persons have an interdependency relationship.

             (2)  The matters are:

                     (a)  all of the circumstances of the relationship between the persons, including (where relevant):

                              (i)  the duration of the relationship; and

                             (ii)  whether or not a sexual relationship exists; and

                            (iii)  the ownership, use and acquisition of property; and

                            (iv)  the degree of mutual commitment to a shared life; and

                             (v)  the care and support of children; and

                            (vi)  the reputation and public aspects of the relationship; and

                           (vii)  the degree of emotional support; and

                          (viii)  the extent to which the relationship is one of mere convenience; and

                            (ix)  any evidence suggesting that the parties intend the relationship to be permanent; and

                     (b)  the existence of a statutory declaration signed by 1 of the persons to the effect that the person is, or (in the case of a statutory declaration made after the end of the relationship) was, in an interdependency relationship with the other person.

302‑200.02  What is an interdependency relationship—existence of relationship

             (1)  For paragraph 302‑200(3)(b) of the Act, this regulation sets out circumstances in which 2 persons have, or do not have, an interdependency relationship under section 302‑200 of the Act.

Interdependency relationship

             (2)  2 persons have an interdependency relationship if:

                     (a)  they satisfy the requirements of paragraphs 302‑200(1)(a) to (c) of the Act; and

                     (b)  1 or each of them provides the other with support and care of a type and quality normally provided in a close personal relationship, rather than by a mere friend or flatmate.

Examples of care normally provided in a close personal relationship rather than by a friend or flatmate:

1       Significant care provided for the other person when he or she is unwell.

2       Significant care provided for the other person when he or she is suffering emotionally.

             (3)  2 persons have an interdependency relationship if:

                     (a)  they have a close personal relationship; and

                     (b)  they do not satisfy the other requirements set out in subsection 302‑200(1) of the Act; and

                     (c)  the reason they do not satisfy the other requirements is that they are temporarily living apart.

Example for paragraph (3)(c):        One of the persons is temporarily working overseas or is in gaol.

             (4)  2 persons have an interdependency relationship if:

                     (a)  they have a close personal relationship; and

                     (b)  they do not satisfy the other requirements set out in subsection 302‑200(1) of the Act; and

                     (c)  the reason they do not satisfy the other requirements is that either or both of them suffer from a disability.

No interdependency relationship

             (5)  2 persons do not have an interdependency relationship if 1 of them provides domestic support and personal care to the other:

                     (a)  under an employment contract or a contract for services; or

                     (b)  on behalf of another person or organisation such as a government agency, a body corporate or a benevolent or charitable organisation.

Division 303Superannuation benefits paid in special circumstances

303‑10.01  Meaning of terminal medical condition

                   For section 30310 of the Act, a terminal medical condition exists in relation to a person at a particular time if the following circumstances exist:

                     (a)  two registered medical practitioners have certified, jointly or separately, that the person suffers from an illness, or has incurred an injury, that is likely to result in the death of the person within a period (the certification period) that ends not more than 12 months after the date of the certification;

                     (b)  at least one of the registered medical practitioners is a specialist practising in an area related to the illness or injury suffered by the person;

                     (c)  for each of the certificates, the certification period has not ended.

Division 306Roll‑overs etc

306‑10.01  Roll‑over superannuation benefit

                   For paragraph 306‑10(b) of the Act, a kind of superannuation benefit is:

                     (a)  a benefit to which the following requirements exist:

                              (i)  the benefit arises from the commutation of a superannuation income stream paid to a person (person 1) because of the death of another person (person 2); and

                             (ii)  person 1 was not the spouse of person 2 at the time of person 2’s death; or

                     (b)  a benefit to which section 303–10 of the Act, or section 303‑10 of the Income Tax (Transitional Provisions) Act 1997, applies.

Note:          Under section 306‑10 of the Act, a superannuation benefit is a roll‑over superannuation benefit if it meets the requirements specified in the section. One of the requirements is that the benefit is not a superannuation benefit of a kind specified in the Regulations.

Division 307Key concepts relating to superannuation benefits

Subdivision 307‑CComponents of a superannuation benefit

307‑125.01  Components of member benefits accruing before 1 July 1999 paid from the Military Superannuation and Benefits Scheme

             (1)  For paragraph 307‑125(4)(a) of the Act, a member of the Military Superannuation and Benefits Scheme who is below preservation age may, subject to subregulation (2), determine the amount of the components of his or her member benefits accruing before 1 July 1999 paid from the Military Superannuation and Benefits Scheme in respect of the member.

             (2)  For subregulation (1), the maximum amount that a member may determine as a component of his or her member benefits accruing before 1 July 1999, whether by a single choice or cumulatively, may not exceed:

                     (a)  for the tax free component of his or her member benefits accruing before 1 July 1999—the amount worked out under section 307‑210 of the Act for the interest; and

                     (b)  for the taxable component of his or her member benefits accruing before 1 July 1999—the amount worked out under section 307‑215 of the Act for the interest.

Example:    A member of the Military Superannuation and Benefits Scheme has an amount of his or her member benefits accruing before 1 July 1999 of $1 000. Just before the benefit is paid, the value of the tax free component is $800 and the taxable component is $200. Before reaching preservation age, the member takes a lump sum benefit of $900.

                   Under subregulation (1), the member is able to determine the amount of the benefit that will be the tax free component and the amount that will be the taxable component of the benefit. However, subregulation (2) prevents the member from treating more than $800 of the superannuation benefit as tax free.

Note:          A preserved superannuation benefit paid in respect of a member of the Military Superannuation and Benefits Scheme is paid in accordance with subsection 307‑125(2) of the Act.

             (3)  This regulation applies to a superannuation benefit paid from the Military Superannuation and Benefits Scheme on or after 1 July 2007.

             (4)  In this regulation:

Military Superannuation and Benefits Scheme is the scheme that is established by clause 2 of the Military Superannuation and Benefits Trust Deed.

307‑125.02  Components of superannuation benefits after death of recipient of superannuation income stream

             (1)  For paragraph 307‑125(4)(a) of the Act, subregulation (2) specifies an alternative method for determining the components of a superannuation benefit to which that subregulation applies if:

                     (a)  immediately before the death of a person (the deceased), a superannuation interest (the relevant superannuation interest) was supporting a superannuation income stream (the original superannuation income stream) payable to the deceased; and

                     (b)  the original superannuation income stream did not automatically revert to another person on the deceased’s death; and

                     (c)  no amounts, other than investment earnings or an amount to fund an anti‑detriment increase, have been added to the relevant superannuation interest on or after the deceased’s death; and

                     (d)  one or both of the following occurs after the deceased’s death:

                              (i)  a superannuation death benefit that is a superannuation lump sum is paid using only an amount from the relevant superannuation interest;

                             (ii)  a superannuation income stream (the new superannuation income stream) is commenced using only an amount applied from the relevant superannuation interest.

             (2)  The method statement sets out how to work out the tax free component and taxable component of:

                     (a)  a superannuation death benefit mentioned in subparagraph (1)(d)(i); or

                     (b)  a superannuation benefit paid from a superannuation interest that supports the new superannuation income stream mentioned in subparagraph (1)(d)(ii).

Method statement

Step 1.   Reduce the amount of the benefit by the extent, if any, to which the benefit is attributable to any of the following:

               (a)     an anti‑detriment increase;

              (b)     an amount paid on or after the death of the deceased under a policy of insurance on the life of the deceased;

               (c)     an amount arising on or after the death of the deceased from self‑insurance.

Step 2.   The tax free component of the benefit is the amount that represents the same proportion of the amount resulting from step 1 as the tax free component of the relevant superannuation interest bore to the value of the relevant superannuation interest when the original superannuation income stream commenced.

Step 3.   The taxable component of the benefit is the amount of the benefit less the tax free component of the benefit worked out under step 2.

             (3)  In this regulation:

anti‑detriment increase, in relation to a benefit, means any increase to the benefit which resulted in the fund that paid the benefit being entitled to a deduction under section 295‑485 of the Act.

investment earnings includes:

                     (a)  an amount paid under a policy of insurance on the life of the deceased; or

                     (b)  an amount arising from self‑insurance.

Subdivision 307‑DSuperannuation interests

307‑200.01  Application of Subdivision 307‑D to Subdivisions 291‑C and 293‑D of the Act

                   This Subdivision does not apply for the purposes of:

                     (a)  calculating an amount of contributions under Subdivision 291‑C of the Act; or

                     (b)  calculating low tax contributions under Subdivision 293‑D of the Act.

307‑200.02  Meaning of superannuation interests

                   For subsection 307‑200(2) of the Act, every amount, benefit or entitlement that a member holds in a self‑managed superannuation fund is to be treated as 1 superannuation interest in the superannuation fund unless the amount, benefit or entitlement is to be treated as 2 or more superannuation interests in accordance with 1 of the other arrangements in this Subdivision.

307‑200.03  Meaning of superannuation interests—treating a superannuation interest as 2 or more superannuation interests (public sector schemes)

             (1)  For subsection 307‑200(1) of the Act, this regulation explains how to treat a superannuation interest in a public sector superannuation scheme as 2 or more superannuation interests.

             (2)  The interest is to be treated as 2 interests if:

                     (a)  the superannuation benefit that is to be paid from the scheme is sourced:

                              (i)  partly from contributions made into the scheme or earnings on those contributions; and

                             (ii)  partly from 1 or more other sources; or

                     (b)  the superannuation benefits that are to be paid from the scheme are sourced:

                              (i)  partly from contributions made into the scheme or earnings on those contributions; and

                             (ii)  partly from 1 or more other sources.

             (3)  For subregulation (2), the interests are:

                     (a)  an interest that consists of the contributions made into the scheme and the earnings on those contributions; and

                     (b)  an interest that consists of the remainder of the amount sourced from the other source or sources.

             (4)  For this regulation, an amount specified in a notice given under subsection 307‑285(1) of the Act by the trustee of a scheme is not included as contributions made into the scheme or earnings on those contributions.

307‑200.05  Meaning of superannuation interests—treating a superannuation interest as 2 or more superannuation interests (superannuation income streams)

                   If a superannuation income stream commences, an amount that supports the superannuation income stream is always to be treated as a separate superannuation interest.

307‑205.01  Value of superannuation interest for calculating pre‑July 1983 amount for members in the contributions and investment phase

             (1)  For paragraph 307‑205(a) of the Act, this regulation specifies methods for determining the value of a superannuation interest at a particular time for the purposes of calculating the pre‑July 1983 amount of the crystallised segment of a tax‑free component under section 307‑225 of the Act.

Note:          Calculating the pre‑July 1983 amount of the crystallised segment of the tax‑free component will require the superannuation interest to be valued before 1 July 2007. This calculation will only be performed for a superannuation interest in the accumulation phase, and only for a superannuation interest in which part of the taxable component is comprised of an element taxed in the fund.

Defined benefit interest

             (2)  For a defined benefit interest, the method is as follows.

 

Step 1

1      Calculate the value of the retirement benefit that would have been payable if the member:

(a) had been eligible to retire immediately before 1 July 2007; and

(b) had elected to do so.

Note:   If a member is no longer in the employment which gave rise to the interest, but the interest is preserved in the scheme, retirement is taken to be the point at which the benefit is payable without penalty to the member.

 

2      If the retirement benefit depends upon the member’s age, service or salary, or upon the employer’s consent, the value is to be calculated on the assumption that:

(a) the member’s service was his or her actual service immediately before 1 July 2007; and

(b)   the member’s age was the greater of:

(i) the minimum age at which a retirement benefit could be taken without requiring the employer’s consent; and

(ii) the member’s actual age immediately before 1 July 2007; and

(c) the member’s salary was his or her salary for superannuation purposes immediately before 1 July 2007; and

(d) the employer consents to the retirement.

 

3      If part or all of the retirement benefit can be paid as a superannuation income stream, then the value of that income stream is determined as the product of:

(a) the annual rate of the superannuation income stream that would have been paid had the maximum proportion of the benefit possible been taken as an income stream; and

 

(b) the applicable factor set out in clause 1 of Schedule 1B.

The total value of the retirement benefit is the sum of the value of the superannuation income stream so determined and any lump sum that would have been payable under the assumptions described above had the member taken the maximum possible proportion of his or her benefit as an income stream.

 

4      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 roll‑over superannuation benefit, would have been payable had the member resigned, or withdrawn his or her benefit, immediately before 1 July 2007, calculate the amount of that benefit.

Step 3

1      The value of the superannuation interest is the greater of the values worked out using steps 1 and 2.

2      If no value can be determined under step 2, the value of the superannuation interest is the value determined under step 1.

Interest other than defined benefit interest

             (3)  For a superannuation interest that is not a defined benefit interest, the method is as follows.

 

Step 1

Assume that the member was eligible to retire immediately before 1 July 2007, and work out the total amount of all the superannuation lump sums that could be payable from the interest at that time.

Step 2

If the total amount worked out under step 1 is less than the total amount actually or notionally allocated to the member (other than because of superannuation contributions surcharge liabilities, insurance costs or other fees, taxes and charges), the value of the interest is the amount actually or notionally allocated to the member.

307‑205.02  Value of superannuation interest

             (1)  For paragraph 307‑205(a) of the Act, this regulation:

                     (a)  applies to a superannuation income stream or a superannuation annuity, other than:

                              (i)  a superannuation income stream that is a pension mentioned in subparagraph 295‑385.01(a)(i), (ii) or (iii); or

                             (ii)  a superannuation income stream or a superannuation annuity for which the rules providing for the income stream or annuity are based on:

                                        (A)  an identifiable lump sum amount; or

                                        (B)  the amount available in the member’s account; or

                            (iii)  a superannuation income stream that is supported by a superannuation interest that can be valued under paragraph 307‑205.02B (a); and

                     (b)  specifies a method for determining the value of a superannuation interest at a particular time if the interest supports a superannuation income stream to which this regulation applies.

Note:          The proportioning rule requires the tax‑free and taxable components of superannuation to be paid out as benefits in the same proportion as they make up of the underlying interest. A value of a superannuation interest is required to ensure that the proportioning rule operates appropriately.

             (2)  The value of the interest at a particular time is the sum of:

                     (a)  the product of:

                              (i)  the annual amount of the superannuation income stream payable in respect of the superannuation interest at that time; and

                             (ii)  the applicable factor set out in clause 1 of Schedule 1B; and

                     (b)  the product of:

                              (i)  the nominal value of the superannuation lump sum, if any, which is payable in respect of the interest at a time in the future, other than a future lump sum which is a commutation of the income stream included in subparagraph (a)(i); and

                             (ii)  the applicable factor set out in clause 2 of Schedule 1B.

307‑205.02A  Superannuation income streams or superannuation annuities based on identifiable amounts—value of an interest

                   For a superannuation income stream or a superannuation annuity mentioned in subparagraph 307‑205.02(1)(a)(ii), the value of the superannuation interest that supports the income stream or annuity is:

                     (a)  the identifiable lump sum amount; or

                     (b)  the amount available in the member’s account.

307‑205.02B  Public sector superannuation schemes—value of an interest

                   A superannuation interest in a public sector superannuation scheme is to be valued:

                     (a)  by using the practice for valuing a superannuation interest (other than an interest that supports a superannuation income stream mentioned in subparagraph 307‑205.02(1)(a)(i)) that was used by the scheme immediately before 28 June 2007; or

                     (b)  if there was not a practice for valuing an interest at that time—by using the method in subregulation 307‑205.02(2).

Part 4International aspects of income tax

  

Subdivision 775‑BRealisation of forex gains or losses

775‑145.01  Application of forex events to currency and fungible rights and obligations

             (1)  For subsection 775‑145(2) of the Act, forex realisation event 1 applies to foreign currency, on a weighted average basis, in the circumstances that an election to use a weighted average basis:

                     (a)  has been made in writing; and

                     (b)  complies with subregulation (4); and

                     (c)  has not been withdrawn in accordance with subregulation (6).

             (2)  For subsection 775‑145(2) of the Act, both of forex realisation events 1 and 2 apply to a fungible right, or a part of a fungible right, to receive foreign currency, on a weighted average basis, in the circumstances that an election to use a weighted average basis:

                     (a)  has been made in writing; and

                     (b)  complies with subregulation (4); and

                     (c)  has not been withdrawn in accordance with subregulation (6).

             (3)  For subsection 775‑145(2) of the Act, forex realisation event 4 applies to a fungible obligation, or a part of a fungible obligation, to pay foreign currency, on a weighted average basis, in the circumstances that an election to use a weighted average basis:

                     (a)  has been made in writing; and

                     (b)  complies with subregulation (4); and

                     (c)  has not been withdrawn in accordance with subregulation (6).

             (4)  An election complies with this subregulation if it includes:

                     (a)  a commencement date of:

                              (i)  the date on which it is made; or

                             (ii)  if the election is made not later than 90 days after the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered in accordance with the Legislative Instruments Act 2003—the applicable commencement date mentioned in section 775‑155 of the Act; or

                            (iii)  1 July 2004; and

                     (b)  a statement that the election is for all of the forex realisation events that are applicable to the fungible thing to which the election relates to apply, on a weighted average basis, to:

                              (i)  all fungible things (other than a fungible thing in relation to which a choice under Subdivision 775‑E of the Act is in effect); or

                             (ii)  1 or more specified classes of fungible things, other than a fungible thing in relation to which a choice under Subdivision 775‑E of the Act is in effect, in circumstances (explained in the statement) in which the effect of the election would reasonably be expected to be the reduction of the costs of compliance with the income tax law; or

                            (iii)  1 or more specified fungible things in circumstances (explained in the statement) in which the effect of the election would be consistent with the treatment of those fungible things in the accounting records of the entity making the election, if those records were prepared in accordance with generally accepted accounting principles.

Note:          The applicable commencement date is explained in section 775‑155 of the Act.

             (5)  An election that complies with subregulation (4) takes effect in accordance with subregulation (4).

             (6)  An entity may withdraw an election only if:

                     (a)  it does not appear on reasonable grounds that the election is being withdrawn for a principal purpose of obtaining a tax benefit; and

Note:          A tax benefit may be an incidental consequence of the withdrawal of an election.

                     (b)  either:

                              (i)  if accounting records in relation to the treatment of fungible things to which the election applies are being kept by the entity and prepared in accordance with generally accepted accounting principles—the election is being withdrawn because there has been a change to the entity’s accounting practices; or

                             (ii)  if:

                                        (A)  accounting records in relation to the treatment of fungible things to which the election applies by the entity are not being kept by the entity and prepared in accordance with generally accepted accounting principles; and

                                        (B)  the election includes the statement mentioned in subparagraph (4)(b)(ii);

                                   there has been a change in the entity’s circumstances that makes the statement mentioned in subparagraph (4)(b)(ii) incorrect.

Note:          A weighted average basis, which is mentioned in section 775‑145 of the Act, is used to allow:

·         the cost of a fungible amount; or

·         the cost of a part of a fungible amount; or

·         in the case of a fungible obligation, or a part of a fungible obligation—the proceeds of assuming the obligation or the part of the fungible obligation;

                   at a particular time to be determined by the weighted average cost of the amounts that were previously added to the fungible amount.

                   Example demonstrating the use of the weighted average basis to a foreign currency bank account

                   John deposits amounts of US dollars (US$) into his bank account at times T1, T2, T3 and T7. At times T4, T5 and T6, John either withdraws some of the US dollars or draws on the account’s credit facility.

                   In this example, a weighted average calculation is made at the time of each transaction, where applicable. An alternative method would be to make 1 calculation for the entire income year (although this alternative method is not appropriate in this example because the account balance changes from credit to debit). Generally, either method is suitable as long as it is used consistently.

                   The weighted average cost (WAC) of the US$ which John holds from times T1 to T7 is shown in the table.

Time

US$ deposit or withdrawal

Exchange rate
US$ : A$

Exchange rate
A$ : US$

A$ amount

US$ balance

A$ equivalent balance (WAC)

WAC per US$

T1

1 000

1.3889

0.7200

1 388.89

1 000

1 388.89

1.3889

T2

2 500

1.4286

0.7000

3 571.43

3 500

4 960.32

1.4172

T3

1 750

1.3699

0.7300

2 397.26

5 250

7 357.58

1.4014

T4

‑2 800

1.3333

0.7500

‑3 733.33

2 450

3 433.54

1.4014

T5

‑4 000

1.2821

0.7800

‑5 128.21

‑1 550

‑1 987.18

1.2821

T6

‑1 000

1.3158

0.7600

‑1 315.79

‑2 550

‑3 302.97

1.2953

T7

1 200

1.3699

0.7300

1 643.84

‑1 350

‑1 748.63

1.2953

Note:       The WAC per US$ does not change upon a withdrawal while (and to the extent that) the account balance remains in credit. Also, when a deposit is made, the WAC per $US does not change while (and to the extent that) the account remains in debit.

Subdivision 830‑AMeaning of foreign hybrid

830‑15.01  Foreign hybrid company

                   For paragraph 830‑15(3)(c) of the Act, it is a requirement for a company in relation to an income year, that the company be a limited liability partnership for the purposes of the Limited Liability Partnerships Act 2000 (UK).

Part 5Administration

Division 910Transitional and application arrangements

910‑1.01  Transitional arrangements arising out of the Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013

             (1)  The amendments made by items 1 and 3 to 6 of Schedule 1 to the Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013 apply in relation to the 2012—13 income year and later income years.

             (2)  The amendment made by item 2 of Schedule 1 to the Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013 applies to a superannuation benefit to which subregulation 307‑125.02(2) applies that is paid on or after the commencement of that regulation.

910‑1.02  Transitional arrangements arising out of the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013

                   The amendment of these Regulations made by item 17 of Schedule 1 to the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013 applies on and after 17 February 2001.

910‑1.03  Transitional arrangements arising out of the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013

                   The amendments of these Regulations made by items 19 and 20 of Schedule 1 to the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013 apply on and after 1 July 2012.

910‑1.04  Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Regulation 2014

                   The amendment of these Regulations made by item 1 of Schedule 1 to the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Regulation 2014 applies on and after 1 July 2012.

910‑1.05  Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2014 Measures No. 2) Regulation 2014

                   The amendment of these Regulations made by item 1 of Schedule 3 to the Tax and Superannuation Laws Amendment (2014 Measures No. 2) Regulation 2014 applies in relation to the 2013‑14 financial year and later financial years.

Part 6The Dictionary

Division 960General

Subdivision 960‑CForeign currency

960‑50.01  Translation of foreign currency amounts into Australian currency—modification of special translation rules

             (1)  The table in subsection 960‑50(6) of the Act is modified by adding after item 11 the following items:

11A

an amount (other than an amount of a receipt or a payment) to which none of the above items applies

the amount is to be translated into Australian currency at an exchange rate that is reasonable having regard to the circumstances.

12

an amount to which any of items 1 to 11A (inclusive) applies

as an alternative to the result mentioned in the item, the amount may be translated into Australian currency using any of the rules set out in Schedule 2 to the Income Tax Assessment Regulations 1997.

             (2)  For subsection 960‑50(8) of the Act, Schedule 2 sets out requirements in relation to the translation of amounts into Australian currency.

             (3)  For subsection 960‑50(7) of the Act, the table in subsection 960‑50(6) of the Act is modified by omitting item 8 and substituting the following items:

8

an amount that you deduct (other than under section 25‑35 or Division 40)

(a) if the amount is paid at or before the time when it became deductible—the amount is to be translated to Australian currency at the exchange rate applicable at the time of payment; or

(b) in any other case—the amount is to be translated to Australian currency at the exchange rate applicable at the time when it became deductible.

8A

an amount that you deduct under section 25‑35

(a) if the debt was included in your assessable income—the amount is to be translated to Australian currency at the exchange rate applicable at the time of translating the income; or

 

 

(b) if the debt was in respect of money that you lent—the amount is to be translated to Australian currency at the exchange rate applicable at the time of translating the money that was lent; or

(c) if you bought the debt—the amount is to be translated to Australian currency at the exchange rate applicable at the time of translating the debt that you bought.

8B

the value of an amount to which a contract (a spot foreign exchange contract) for the exchange of amounts in different currencies relates if:

(a) the spot foreign exchange contract includes a requirement that consideration be provided within 2 business days after the contract is entered into; and

(b) that requirement is satisfied

the value of the amount to which the contract relates is to be translated to Australian currency at the exchange rate applicable at the tax recognition time (within the meaning of Division 775) referred to in the forex realisation event that happens on payment or receipt of that amount, unless the entity’s usual business practice is not to translate the amount at the exchange rate applicable at the tax recognition time for the purpose of recording the transaction in the entity’s accounting records.

Note:  An entity’s usual business practice may be to translate amounts into Australian currency at a different exchange rate because the entity recognises gains and losses under spot foreign exchange contracts in the entity’s accounting records.

8C

the value of an amount to which a contract (a spot contract) for the exchange of an amount in a foreign currency and a security relates if:

(a) the spot contract includes a requirement that consideration be provided within 2 business days after the contract is entered into; and

(b) that requirement is satisfied

the value of the amount to which the contract relates is to be translated to Australian currency at the exchange rate applicable at the tax recognition time (within the meaning of Division 775) referred to in the forex realisation event that happens on payment or receipt of that amount, unless the entity’s usual business practice is not to translate the amount at the exchange rate applicable at the tax recognition time for the purpose of recording the transaction in the entity’s accounting records.

Note:  An entity’s usual business practice may be to translate amounts into Australian currency at a different exchange rate because the entity recognises gains and losses under spot contracts in the entity’s accounting records.

Subdivision 960‑DFunctional currency

960‑80.01  Translation rules—translation into applicable functional currency

                   For subsection 960‑80(7) of the Act, the requirements set out in Schedule 2 in relation to the translation of amounts into Australian currency have effect in relation to the translation of amounts into the applicable functional currency as if:

                     (a)  each reference in that Schedule to Australian currency were a reference to the applicable functional currency; and

                     (b)  the modifications set out in the following table were made:

 

Item

Provision

After

Insert

1

Subclause 1.2(2)

year

(or, if the entity is an attributable taxpayer in relation to a CFC (within the meaning of Part X of the Income Tax Assessment Act 1936)—each subsequent day in the CFC’s statutory accounting period (within the meaning of that Part))

2

Paragraph 1.2(3)(a)

activities

(or, if the entity is an attributable taxpayer in relation to a CFC (within the meaning of Part X of the Income Tax Assessment Act 1936), the use of the rate would not be appropriate having regard to the CFC’s business or activities)

960‑80.02  Translation rules for an attributable taxpayer of a CFC—translation into applicable functional currency

             (1)  For subsection 960‑80(7) of the Act, if:

                     (a)  an entity is an attributable taxpayer in relation to a CFC; and

                     (b)  the CFC has prepared financial accounts in accordance with standards to which subsection 820‑960(1C) or (1D) of the Act relates; and

                     (c)  those financial accounts translate amounts into the applicable functional currency using particular exchange rates; and

                     (d)  the entity wishes to translate an amount into the applicable functional currency, using the exchange rate used to translate a corresponding amount in the financial accounts;

the entity must translate all amounts into the applicable functional currency using the exchange rates that were used in the financial accounts to translate corresponding amounts.

             (2)  In this regulation:

CFC has the meaning given by Part X of the Income Tax Assessment Act 1936.

960‑80.03  Translation rules—translation from applicable functional currency into Australian currency

             (1)  For subsection 960‑80(7) of the Act, if, before the day on which the Income Tax Assessment Amendment Regulations 2005(No. 2) are registered, an entity translates an amount that is not the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity may translate the amount using:

                     (a)  an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the entity carries on the relevant business or other activity; or

                     (b)  the exchange rate applicable on the last day of the entity’s income year.

             (2)  For subsection 960‑80(7) of the Act, if, before the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered, an entity that is an attributable taxpayer in relation to a CFC translates an amount that is the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity may translate the amount using:

                     (a)  an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the CFC carries on the relevant business or other activity; or

                     (b)  the exchange rate applicable on the last day of the CFC’s statutory accounting period.

             (3)  For subsection 960‑80(7) of the Act, if, on or after the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered, an entity translates an amount that is not the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity must translate the amount using:

                     (a)  an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the entity carries on the relevant business or other activity; or

                     (b)  if the entity makes an election in writing to use the exchange rate applicable on the last day of the entity’s income year—that exchange rate.

             (4)  For subsection 960‑80(7) of the Act, if, on or after the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered, an entity that is an attributable taxpayer in relation to a CFC translates an amount that is the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity must translate the amount using:

                     (a)  an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the CFC carries on the relevant business or other activity; or

                     (b)  if the entity makes an election in writing to use the exchange rate applicable on the last day of the CFC’s statutory accounting period—that exchange rate.

             (5)  An election under paragraph (3)(b) or (4)(b) is irrevocable.

             (6)  In this regulation:

CFC has the meaning given by Part X of the Income Tax Assessment Act 1936.

registered means registered in accordance with the Legislative Instruments Act 2003.

statutory accounting period has the meaning given by Part X of the Income Tax Assessment Act 1936.

Division 974Debt and equity interests

Subdivision 974‑FRelated concepts

974‑135A  Non‑cumulative redeemable preference shares issued by credit union

                   For paragraph 974‑135(8)(d) of the Act, the obligation in respect of the return of investment on the redemption of a non‑cumulative redeemable preference share issued by a credit union is not an effectively non‑contingent obligation if:

                     (a)  the share is issued on or after 4 March 2003; and

                     (b)  the share satisfies, at the time it is issued, the criteria set out in section 7 of Guidance Note AGN 111.2—Tier 2 Capital, published by APRA in September 2000; and

                     (c)  the share is issued subject to the following terms and conditions:

                              (i)  the share has a minimum term of 5 years;

                             (ii)  dividend payments for the share are to be paid only:

                                        (A)  out of operating profits from the current year or the immediately previous year; and

                                        (B)  to the extent that payment is permitted by law and by relevant regulatory authorities;

                            (iii)  dividend payments for the share are not cumulative;

                            (iv)  any payments made in relation to the share out of net profits or net assets have preferential rights over payments made in relation to ordinary shares (if any) from the same sources;

                             (v)  if the share is to be redeemed—the redemption cannot be carried out without the approval of the board of the credit union;

                            (vi)  if the share is to be redeemed, but the redemption of the share would place the credit union in breach of a prudential standard made under the Banking Act 1959—the redemption cannot be carried out without the approval of APRA; and

                     (d)  the redemption is carried out on or after 4 March 2003; and

                     (e)  the share is issued only to a member of the credit union; and

                      (f)  a member of the credit union and its connected entities (within the meaning of subsection 995‑1(1) of the Act) can together hold not more than 10% by value of the shares of that kind issued by the credit union.

974‑135B  Non‑cumulative redeemable preference shares issued by mutual building society

                   For paragraph 974‑135(8)(d) of the Act, the obligation in respect of the return of investment on the redemption of a non‑cumulative redeemable preference share issued by a mutual building society is not an effectively non‑contingent obligation if:

                     (a)  the mutual building society is an ADI; and

                     (b)  the share is issued on or after 4 March 2003; and

                     (c)  the share satisfies, at the time it is issued, the criteria set out in section 7 of Guidance Note AGN 111.2—Tier 2 Capital, published by APRA in September 2000; and

                     (d)  the share is issued subject to the following terms and conditions:

                              (i)  the share has a minimum term of 5 years;

                             (ii)  dividend payments for the share are to be paid only:

                                        (A)  out of operating profits from the current year or the immediately previous year; and

                                        (B)  to the extent that payment is permitted by law and by relevant regulatory authorities;

                            (iii)  dividend payments for the share are not cumulative;

                            (iv)  any payments made in relation to the share out of net profits or net assets have preferential rights over payments made in relation to ordinary shares (if any) from the same sources;

                             (v)  if the share is to be redeemed—the redemption cannot be carried out without the approval of the board of the mutual building society;

                            (vi)  if the share is to be redeemed, but the redemption of the share would place the mutual building society in breach of a prudential standard made under the Banking Act 1959—the redemption cannot be carried out without the approval of APRA; and

                     (e)  the redemption is carried out on or after 4 March 2003; and

                      (f)  the share is issued only to a member of the mutual building society; and

                     (g)  a member of the mutual building society and its connected entities (within the meaning of subsection 995‑1(1) of the Act) can together hold not more than 10% by value of the shares of that kind issued by the mutual building society.

974‑135C  Redeemable preference shares

                   For paragraph 974‑135(8)(a) of the Act, an obligation to redeem or buy back a preference share in relation to a company is not a contingent obligation merely because a requirement exists, under a law, to the effect that:

                     (a)  the redemption or buy back must not prejudice the company’s ability to pay its creditors; or

                     (b)  the redemption or buy back must not cause the company’s remaining assets to become insufficient to pay any of the company’s debts for which provision for payment has not otherwise been made.

974‑135D  Term cumulative subordinated note with insolvency or capital adequacy conditions

             (1)  This regulation applies to an obligation to pay the principal or interest on a relevant term subordinated note at a particular time on or after 1 July 2001.

             (2)  For paragraphs 974‑135(8)(a) and (b) of the Act, the fact that the obligation is subject to insolvency or capital adequacy conditions does not in itself prevent it from being a non‑contingent obligation.

             (3)  In this regulation, a term subordinated note is relevant if:

                     (a)  at the time of its issue:

                              (i)  it does not constitute or meet the requirements of a Tier 1 capital instrument; and

                             (ii)  it does not form part of the Tier 1 capital of the issuer of the note, or a connected entity, and the reason for it not doing so is not that the instrument is in excess of the Tier 1 capital required for the purposes of prudential standards that deal with capital adequacy; and

                     (b)  it has a term of not more than 30 years; and

                     (c)  it does not include an unconditional right to extend the term of the note beyond a total term of 30 years; and

                     (d)  it is subject to a condition that any payment of the principal or interest beyond the date on which it would otherwise be payable must accumulate (with or without compounding); and

                     (e)  it does not give the issuer of the note an unconditional right to decline to provide a financial benefit that is equal in nominal value to the issue price of the note to settle the obligations under the note.

             (4)  In this regulation, conditions applying to the obligation are insolvency or capital adequacy conditions if they have the effect that the issuer of the note is obliged or able to defer the payment of the principal or interest beyond the date on which it would otherwise be payable if, on that date:

                     (a)  the issuer of the note is insolvent, or would become insolvent if the payment were made; or

                     (b)  if the issuer of the note is an entity that is regulated by the APRA or a comparable foreign regulator—the issuer is in breach of its capital adequacy ratio or would be in breach if the payment were made.

             (5)  If the obligation is an obligation to pay at a time before 15 April 2010, this regulation applies only to the extent that applying it would not have the result that:

                     (a)  the rights of a person (other than the Commonwealth or an authority of the Commonwealth) immediately before 15 April 2010 would be affected so as to disadvantage the person; or

                     (b)  liabilities would be imposed on a person (other than the Commonwealth or an authority of the Commonwealth), for anything done or omitted to be done before 15 April 2010.

974‑135E  Perpetual cumulative subordinated note with profitability, insolvency or negative earnings conditions

             (1)  This regulation applies to an obligation to pay interest on a relevant perpetual subordinated note at a particular time on or after 1 July 2001.

             (2)  For paragraphs 974‑135(8)(a) and (b) of the Act, the fact that the obligation is subject to profitability, insolvency or negative earnings conditions does not in itself prevent the obligation from being a non‑contingent obligation.

             (3)  In this regulation, a relevant perpetual subordinated note is a perpetual subordinated note that:

                     (a)  at the time of its issue:

                              (i)  does not constitute or meet the requirements of a Tier 1 capital instrument; and

                             (ii)  does not form part of the Tier 1 capital of the issuer of the note, or a connected entity, and the reason for it not doing so is not that the instrument is in excess of the Tier 1 capital required for the purposes of prudential standards that deal with capital adequacy; and

                     (b)  would be a debt interest but for the obligation being subject to one or more profitability, insolvency or negative earnings conditions; and

                     (c)  is subject to the condition that any deferred interest must accumulate (with or without compounding); and

                     (d)  was issued by:

                              (i)  an ADI that is a bank or non‑mutual building society and that is regulated for prudential purposes by APRA; or

                             (ii)  a subsidiary of an ADI mentioned in subparagraph (i), being a subsidiary that is regulated with the ADI for prudential purposes by APRA; or

                            (iii)  an entity that:

                                        (A)  has undertaken to comply with prudential standards, issued by APRA, that deal with capital adequacy; and

                                        (B)  is regulated for prudential purposes by APRA; or

                            (iv)  a subsidiary of an entity mentioned in subparagraph (iii) that is covered by the undertaking mentioned in that subparagraph; or

                             (v)  an entity that is regulated for prudential purposes:

                                        (A)  by a foreign prudential regulator that has a prudential regulatory role comparable to that of APRA; and

                                        (B)  under ADI capital adequacy requirements comparable to those of APRA; and

                     (e)  does not give the issuer of the note an unconditional right to decline to provide a financial benefit that is equal in nominal value to the issue price of the note to settle the obligations under the note.

             (4)  In this regulation, conditions applying to the obligation are profitability, insolvency or negative earnings conditions if they have the effect that the issuer of the note is able, or obliged, to defer the payment of the interest (with or without compounding) beyond the date on which it would otherwise be payable if, on that date:

                     (a)  profitability does not justify the payment; or

                     (b)  the issuer of the note is insolvent, or would become insolvent if the payment were made; or

                     (c)  a dividend has not been declared or paid on a class or classes of share capital of the issuer during a specified period that:

                              (i)  immediately precedes that date; and

                             (ii)  is no more than 24 months; or

                     (d)  the issuer’s retained earnings are negative, or would be negative if the payment were made.

             (5)  If the obligation is an obligation to pay at a time before the day this regulation commences, this regulation applies only to the extent that applying it would not have the result that:

                     (a)  the rights of a person (other than the Commonwealth or an authority of the Commonwealth) immediately before the day this regulation commences would be affected so as to disadvantage that person; or

                     (b)  liabilities would be imposed on a person (other than the Commonwealth or an authority of the Commonwealth) for anything done or omitted to be done before the day this regulation commences.

Note:          The application of this regulation to a perpetual subordinated note does not mean that the note, together with one or more related schemes, cannot give rise to an equity interest.

974‑135F  Term cumulative subordinated note with non‑viability condition

             (1)  This regulation applies to an obligation to pay the principal or interest on a relevant term subordinated note at a particular time on or after the day this regulation commences.

             (2)  For paragraphs 974‑135(8)(a) and (b) of the Act, the fact that the obligation is subject to a non‑viability condition does not in itself prevent the obligation from being a non‑contingent obligation.

             (3)  In this regulation, a term subordinated note is relevant if:

                     (a)  it is issued by an entity regulated for prudential purposes by APRA or a subsidiary of an entity that is regulated for prudential purposes by APRA; and

                     (b)  when it is issued:

                              (i)  it does not constitute or meet the requirements of a Tier 1 capital instrument; and

                             (ii)  it does not form part of the Tier 1 capital of the issuer of the note, and the reason for it not doing so is not that the instrument is in excess of the Tier 1 capital required for the purposes of prudential standards that deal with capital adequacy; and

                     (c)  it has a term of no more than 30 years, and it does not include an unconditional right to extend the term of the note beyond a total term of 30 years; and

                     (d)  it is subject to a condition that, unless a non‑viability trigger event occurs, any payment of the principal or interest beyond the date on which it would otherwise be payable must accumulate (with or without compounding); and

                     (e)  it does not give the issuer of the note an unconditional right to decline to provide a financial benefit that is equal in nominal value to the issue price of the note to settle the obligations under the note.

Note for paragraph (b)

Whether the note constitutes or meets the requirement of a Tier 1 capital instrument, or forms part of the Tier 1 capital of the issuer, is determined under the prudential standards that apply to the issuer.

             (4)  In this regulation, a condition applying to the obligation is a non‑viability condition if the condition has the effect that the note must be written off or converted into ordinary shares of the issuer of the note or a parent entity of the issuer if a non‑viability trigger event occurs.

             (5)  In this regulation, a non‑viability trigger event, in relation to a note, is any of the following:

                     (a)  APRA or a comparable foreign regulator issues a notice, in writing, to the issuer of the note stating that conversion or write‑off of capital instruments issued by the issuer is necessary because, without it, APRA or the foreign regulator considers that the issuer will become non‑viable;

                     (b)  APRA or a comparable foreign regulator determines, in writing given to the issuer of the note, that without an injection of capital, or equivalent support, from the public sector the issuer will become non‑viable;

                     (c)  APRA or a comparable foreign regulator issues a notice, in writing, to a parent entity of the issuer of the note stating that conversion or write‑off of capital instruments is necessary because, without it, APRA or the foreign regulator considers that the parent entity or the issuer will become non‑viable;

                     (d)  APRA or a comparable foreign regulator determines, in writing given to a parent entity of the issuer of the note, that without an injection of capital, or equivalent support, from the public sector the parent entity or the issuer will become non‑viable.

Division 995Definitions

995‑1.01  Definitions

             (1)  In these Regulations, unless the contrary intention appears:

accruing member has:

                     (a)  for the purposes of Schedule 1A—the meaning given by clause 1.1 of that Schedule; and

                     (b)  for the purposes of Subdivision 293‑DA and Schedule 1AA—the meaning given by subregulation 293‑115.05(2).

Act means the Income Tax Assessment Act 1997.

defined benefit member:

                     (a)  means a member of a superannuation fund whose entitlements to superannuation benefits (other than benefits payable on death or disability) are defined by reference to 1 or more of the following matters:

                              (i)  the member’s salary, or allowance in the nature of salary, at a particular date or averaged over a period;

                             (ii)  another individual’s salary, or allowance in the nature of salary, at a particular date or averaged over a period;

                            (iii)  a specified amount;

                            (iv)  specified conversion factors; but

                     (b)  does not include a member of a superannuation fund whose entitlements to superannuation are defined solely by reference to 1 or more of the following matters:

                              (i)  the member’s disability superannuation benefits;

                             (ii)  the member’s superannuation death benefits;

                            (iii)  payments of amounts mentioned in paragraph 307‑10(a) of the Act (which relates to temporary disability payments).

funded benefit interest has the meaning given by subregulation 293‑115.15(2).

insolvent, for an issuer, means:

                     (a)  the issuer cannot pay its debts as they fall due; or

                     (b)  the issuer’s liabilities exceed its assets.

non‑accruing member has, for the purposes of Subdivision 293‑DA, the meaning given by subregulation 293‑115.05(2).

on‑hold member, in relation to a defined benefit member of a superannuation fund, has the meaning given by subregulation 292‑170.04(5A).

pensioned member, in relation to a defined benefit member of a superannuation fund, has the meaning given by subregulation 292‑170.04(5).

RSA Act means the Retirement Savings Accounts Act 1997.

RSA Regulations means the Retirement Savings Accounts Regulations 1997.

SIS Act means the Superannuation Industry (Supervision) Act 1993.

SIS Regulations means the Superannuation Industry (Supervision) Regulations 1994.

superannuation annuity means:

                     (a)  an income stream:

                              (i)  that is issued by a life insurance company or registered organisation; and

                             (ii)  that commenced before 20 September 2007; and

                            (iii)  that is an annuity within the meaning of:

                                        (A)  subsection 10(1) of the SIS Act; or

                                        (B)  subregulation 1.07(1A) of the RSA Regulations; or

                     (b)  an income stream that:

                              (i)  is issued by a life insurance company or registered organisation; and

                             (ii)  meets the standards set out in subregulation 1.05(1) of the SIS Regulations.

superannuation income stream means:

                     (a)  an income stream that is taken to be:

                              (i)  an annuity for the purposes of the SIS Act in accordance with subregulation 1.05(1) of the SIS Regulations; or

                             (ii)  a pension for the purposes of the SIS Act in accordance with subregulation 1.06(1) of the SIS Regulations; or

                            (iii)  a pension for the purposes of the RSA Act in accordance with regulation 1.07 of the RSA Regulations; or

                     (b)  an income stream that:

                              (i)  is an annuity or pension within the meaning of the SIS Act; and

                             (ii)  commenced before 20 September 2007.

superannuation income stream benefit: see subregulations (2) to (5).

superannuation salary means the salary used to determine a person’s entitlement to superannuation benefits.

terminal medical condition has the meaning given by regulation 303–10.01.

             (2)  In these Regulations:

superannuation income stream benefit:

                     (a)  means a payment from an interest that supports a superannuation income stream, other than a payment to which regulation 995‑1.03 applies; and

                     (b)  for the purposes of sections 295‑385, 295‑390, 295‑395, 320‑246 and 320‑247 of the Act—includes an amount taken to be the amount of a superannuation income stream benefit under subregulation (3) or (4).

             (3)  For the purposes of sections 295‑385, 295‑390, 295‑395, 320‑246 and 320‑247 of the Act, if:

                     (a)  a superannuation death benefit that is a superannuation lump sum is paid after the death of a person (the deceased) using only an amount from a superannuation interest; and

                     (b)  immediately before the deceased’s death, the superannuation interest was supporting a superannuation income stream payable to the deceased; and

                     (c)  the superannuation income stream did not automatically revert to another person on the death of the deceased;

the amount paid as the superannuation lump sum, to the extent it is not attributable to any amount (other than investment earnings) added to the superannuation interest on or after the deceased’s death, is taken to be the amount of a payment from a superannuation income stream of a superannuation income stream benefit that was payable from the day of the deceased’s death until as soon as it was practicable to pay the superannuation lump sum.

             (4)  For the purposes of sections 295‑385, 295‑390, 295‑395, 320‑246 and 320‑247 of the Act, if:

                     (a)  immediately before the death of a person (the deceased), a superannuation interest was supporting a superannuation income stream payable to the deceased; and

                     (b)  a new superannuation income stream is commenced using an amount applied from the superannuation interest after the death of the deceased;

the amount so applied, to the extent it is not attributable to any amount (other than investments earnings) added to the superannuation interest on or after the deceased’s death, is taken to be the amount of a payment from a superannuation income stream of a superannuation income stream benefit that was payable from the day of the deceased’s death until as soon as it was practicable to commence the new superannuation income stream.

             (5)  In this regulation:

investment earnings does not include:

                     (a)  an amount paid under a policy of insurance on the life of the deceased; or

                     (b)  an amount arising from self‑insurance.

995‑1.03  Payments that are not superannuation income stream benefits

                   A payment from an interest that supports a superannuation income stream is not a superannuation income stream benefit if:

                     (a)  the conditions to which the superannuation income stream is subject allow for the variation of the amount of the payments of benefit in a year in circumstances other than:

                              (i)  the indexation of the benefit under the rules of the product; or

                             (ii)  the application of the family law splitting provisions; or

                            (iii)  the commutation of the benefit (including commutation to pay a surcharge liability); or

                            (iv)  the payment of an assessment of excess contributions tax; and

                     (b)  the person to whom the payment is made elects, before a particular payment is made, that that payment is not to be treated as a superannuation income stream benefit.

995‑1.04  Constitutionally protected funds

                   For the definition of constitutionally protected fund in subsection 995‑1(1) of the Act, a fund:

                     (a)  of the kind to which, in the absence of item 5.3 of section 50‑25 of the Act, Division 295 of the Act would apply; and

                     (b)  established by:

                              (i)  a State Act mentioned in Schedule 4; or

                             (ii)  a specified provision of a State Act mentioned in Schedule 4;

is a constitutionally protected fund.

995‑1.05  Approved stock exchanges

                   The stock exchanges specified in Schedule 5 are named for the purposes of the definition of approved stock exchange in subsection 995‑1(1) of the Act.

 


Schedule 1Cents per kilometre

(regulation 28‑25.01)

Part 1Definitions

  

                   In this Schedule:

small car means a car that is powered by:

                     (a)  an engine (other than a rotary engine) with a capacity that does not exceed 1600 cm3; or

                     (b)  a rotary engine with a capacity that does not exceed 800 cm3.

medium car means a car that is powered by:

                     (a)  an engine (other than a rotary engine) with a capacity that exceeds 1600 cm3 but does not exceed 2600 cm3; or

                     (b)  a rotary engine with a capacity that exceeds 800 cm3 but does not exceed 1300 cm3.

large car means a car that is powered by:

                     (a)  an engine (other than a rotary engine) with a capacity that exceeds 2600 cm3; or

                     (b)  a rotary engine with a capacity that exceeds 1300 cm3.

Part 2Cents per kilometre

  

 

Cents per kilometre

Item

Income year

Small car

Medium car

Large car

1

1997‑98

45.70

51.90

53.80

2

1998‑99

45.70

51.90

53.80

3

1999‑00

45.90

54.90

55.80

4

2000‑01

48.90

58.50

59.50

5

2001‑02

49.30

59.00

60.00

6

2002–03

50.00

60.00

61.00

7

2003–04

51.00

61.00

62.00

8

2004–05

52.00

62.00

63.00

9

2005–06

55.00

66.00

67.00

10

2006–07

58.00

69.00

70.00

11

2007–08

58.00

69.00

70.00

12

2008–09

63.00

74.00

75.00

13

2009–10

63.00

74.00

75.00

14

2010–11

63.00

74.00

75.00

15

2011–12

63.00

74.00

75.00

16

2012–13

63.00

74.00

75.00

17

2013‑14

65.00

76.00

77.00

Note:       For the rate prescribed for earlier income years, see regulation 147 of the Income Tax Regulations 1936.

Schedule 1AMethod of working out amount of notional taxed contributions

(subregulations 292‑170.02(2), 292‑170.05(2) and (3) and 292‑170.06(2) and (3))

Part 1Preliminary

  

                   Meaning of accruing member

1.1              An accruing member in a financial year is a defined benefit member who is not a non‑accruing member for the financial year.

                   Meaning of benefit category

1.2              A benefit category is a category of membership of a defined benefit fund as certified by an actuary.

1.3              An actuary must not certify a category of membership to be a benefit category unless the actuary is satisfied that:

                     (a)  each hypothetical new entrant to the benefit category with the same entry age would accrue retirement benefits on substantially the same basis; or

                     (b)  if any 2 hypothetical new entrants to the benefit category accrued retirement benefits on a different basis, the new entrant rates for each member calculated under Parts 2 and 3 would be equal.

Example:    A defined benefit fund provides a benefit accrual of 10% plus twice member contribution rate of final average salary for each year of membership. Members can contribute at either 4% or 6% of salary. Member A contributes at 4% and member B contributes at 6%. An actuary must not certify that A and B are in the same benefit category unless the new entrant rates, as calculated under this Schedule, for members who contribute at 4% and 6%, are equal.

Note:          A member would not be expected to move from one benefit category to another unless 1 of the following relevant external events occurs:

(a)    the member ceases accruing benefits under one section of the fund rules but commences accruing benefits under another section of the fund rules as a result of a change in employment status, eg promotion;

(b)    the member continues accruing benefits under one section of the fund rules and commences accruing benefits under another section of the fund rules as a result of a change in employment status, eg promotion;

(c)    the member ceases accruing benefits under one section of the fund rules and commences or continues accruing benefits under another section of the fund rules as a result of reaching maximum accrual or a change in employment status, eg demotion;

(d)    the exercise of a member option which results in a material change in the level of employer support;

(e)    a change in fund rules which directly affected the member’s rate of accrual of retirement benefits in respect of future membership after 1 July 2007.

Example for paragraph (d)

If the new entrant rates calculated for members with different member contribution rates are not equal, and, as a result, there are a number of benefit categories corresponding to the different member contribution rates, then a change in contribution rate would result in a move between benefit categories

                   Accruing member must not belong to more than one benefit category at the same time unless certified by an actuary

1.4        (1)  An accruing member must not belong to more than one benefit category of the same defined benefit fund on the same day unless certified by an actuary.

             (2)  An actuary must not certify that a member belongs to more than one benefit category on the same day unless the actuary is satisfied that the amount of notional taxed contributions to be reported will not be materially different from the amount of notional taxed contributions that would have been reported had the member belonged to only one benefit category on each relevant day.

Note:          An accruing member would be ordinarily expected to belong to only one benefit category at a time. However, there might be circumstances in certain funds where it is materially more practical for the purpose of calculating the total amount of notional taxable contributions to deem that some members belong to more than one benefit category from time to time.

                   Meaning of fund benefit

1.5              That part of a defined benefit interest which is sourced from contributions made into a superannuation fund or earnings on such contributions is referred to as the fund benefit.

Note:          A superannuation benefit may be wholly sourced from contributions made into a superannuation fund or earnings on such contributions. A superannuation benefit paid from a public sector superannuation fund may be wholly or partly sourced, or not sourced to any extent, from contributions made into a superannuation fund or earnings on such contributions. If a superannuation benefit is not sourced to any extent from contributions made into a superannuation fund, or earnings on such contributions, the amount of the fund benefit is zero.

                   Standard method for working out amount of notional taxed contributions in respect of a benefit category for an accruing member of the benefit category if the fund benefit is wholly sourced from an accumulation of contributions made in respect of the member

1.6              If the fund benefit is wholly sourced from an accumulation of concessional contributions made to a superannuation fund in respect of a member or earnings on such contributions, or an accumulation of member contributions or earnings on such contributions, the amount of notional taxed contributions for an accruing member for a financial year is the amount of concessional contributions made to the superannuation fund in respect of the member during the financial year.

                   Standard method for working out amount of notional taxed contributions in respect of a benefit category for an accruing member of the benefit category if the fund benefit is not wholly sourced from an accumulation of contributions made in respect of the member

1.7              If section 1.6 does not apply, the standard method for working out the amount of notional taxed contributions for an accruing member of a benefit category of a defined benefit fund for a financial year is:

where, for the financial year:

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.

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 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 which are not assessable income of the fund.

                   Standard method of working out total amount of notional taxed contributions for an accruing member of a defined benefit fund for a financial year

1.8              The standard method for working out the total amount of notional taxed contributions for an accruing member of a defined benefit fund for a financial year is:

where, for the financial year:

T is the sum of the amounts of notional taxed contributions for each benefit category that the member belongs to during the financial year calculated under sections 1.6 and 1.7.

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.

Part 2New entrant rate

                   Method of working out new entrant rate for a benefit category

2.1        (1)  The new entrant rate for a benefit category is the rate calculated under this Part and using the assumptions set out in Part 3.

             (2)  The new entrant rate for a benefit category is the rate that represents the long‑term cost, expressed as a percentage of superannuation salary, of providing as much of the fund benefit as is payable on a voluntary exit to a hypothetical new entrant to the benefit category.

             (3)  The new entrant rate is calculated as the present value of the fund benefit payable on voluntary exit (resignation, early retirement, or retirement) under the rules of the defined benefit fund which are applicable to a new entrant to the benefit category divided by the present value of future superannuation salaries payable to the new entrant.

             (4)  To put the matter beyond doubt, the new entrant rate is calculated assuming that the fund benefit is to be wholly sourced from concessional contributions made into the fund at the new entrant rate and earnings on those contributions.

             (5)  The present value of the fund benefit is to be calculated having regard to the rules and practice of the defined benefit fund including benefit structure, caps, member options, reasonably expected discretions and member contributions, and using the economic, decrement and other assumptions set out in Part 3.

                   New entrant rate to be based on period of membership needed to reach maximum benefit accrual

2.2        (1)  If the rules of the defined benefit fund applicable to the benefit category provide for a maximum benefit accrual, the new entrant rate is to be calculated on the basis that the benefit is funded over the period to when maximum accrual is attained.

             (2)  For practical purposes this means that, for the purpose of calculating the present value of future salaries payable to the new entrant, the superannuation salary is to be assumed to be zero at those ages after reaching maximum benefit accrual.

Example:    If maximum accrual is attained after 20 years of membership, the superannuation salary for a 30‑year‑old new entrant will be assumed to be zero at age 50 and above for the purpose of calculating the present value of future salaries payable to the new entrant.

                   New entrant rate to be rounded down

2.3              The new entrant rate is to be rounded down to the lower 1 percentage point.

Example:    10.6% would be rounded down to 10%.

                   No allowance for administration expenses or income tax on assessable contributions

2.4              The new entrant rate is to be calculated ignoring:

                     (a)  administration expenses; and

                     (b)  income tax on assessable contributions.

Note:          These items are allowed for in the formula in section 1.7 by multiplying by 1.2.

                   Certain discretions to be allowed for

2.5        (1)  The new entrant rate is to be calculated assuming that certain discretions are always exercised.

             (2)  Subject to subsection (2A), if the fund rules provide a discretion to pay, on voluntary exit, a benefit that is higher than the standard benefit, the actuary must assume that a higher benefit is always paid on voluntary exit on or after age 55.

          (2A)  If the higher benefit mentioned in subsection (2) exceeds the accrued retirement benefit, the actuary may assume that the benefit is an amount:

                     (a)  greater than or equal to the accrued retirement benefit; and

                     (b)  less than or equal to the higher benefit.

             (3)  If the actuary believes that there is a reasonable expectation that a higher benefit than either the standard benefit or the accrued retirement benefit will be paid, then the actuary should assume that the benefit paid on voluntary exit on or after age 55 is always equal to the benefit reasonably expected to be paid.

Note:          In considering whether there is a reasonable expectation that a higher benefit will be paid, it would generally not be appropriate to assume payment unless such an assumption was adopted in the most recent actuarial review.

                   Method of working out new entrant rate for a member

2.6        (1)  If a member belongs to exactly one benefit category at a particular time, the new entrant rate for the member at that time is the new entrant rate for that benefit category.

             (2)  If a member belongs to more than one benefit category at a particular time, the new entrant rate for the member at that time is the sum of the new entrant rates for each benefit category to which the member belongs.

Note:          The new entrant rate for a member is relevant to regulations 292‑170.05 and 292‑170.06.

Part 3Valuation parameters

                   Application of economic, decrement and other parameters

3.1              For the purpose of working out the new entrant rate for a benefit category mentioned in Part 1 or 2, the actuary is to apply the economic, decrement and other parameters set out in this Part.

                   Discount rate

3.2        (1)  The discount rate to be used to discount projected future benefits and salaries is 8% per year.

             (2)  The discount rate is not to be adjusted for investment expenses or investment‑related taxation or for any other reason.

                   Fund earning rate and crediting rate

3.3        (1)  If necessary, the fund earning rate to be assumed is 8% per year.

             (2)  If necessary, the assumed crediting rate is to be based on the assumed fund earning rate.

                   Rate of future salary or wages growth

3.4        (1)  The rate of salary or wages growth to be applied is 4.5% per year.

             (2)  This rate is to be used:

                     (a)  to project the value of future salary or wages; and

                     (b)  to project benefits that increase in accordance with a general wage index (for example, average weekly earnings).

                   Rate of increase in price indices

3.5              If a benefit is linked to an increase in a price index (for example, the Consumer Price Index), the rate of increase in the price index to be applied is 2.5% per year.

                   New entrant age

3.6        (1)  The age of new entrants to be assumed is based on the average age of entry to the fund of the persons who were defined benefit members of the fund at 1 July 2007.

             (2)  The table sets out the age of new entrants that is to be assumed.

Average age last birthday at commencement in fund of defined benefit members of the fund at 1 July 2007

New entrant age to be assumed

<30

25

30‑34

30

35‑39

35

40‑44

40

45‑49

45

50+

50

          (2A)  If:

                     (a)  there has been a transfer of defined benefit members from a predecessor fund into the fund, or a sub‑fund of the fund; and

                     (b)  the actuary considers it reasonable to do so;

the actuary may determine a new entrant age for the fund or sub‑fund taking account of the average age of entry used for or relevant for those members in the predecessor fund.  

          (2B)  For this section:

defined benefit member does not include a person who:

                     (a)  is receiving only a pension benefit from the fund; or

                     (b)  has deferred his or her benefit entitlement in the fund.

             (3)  If the actuary believes that there is insufficient information available to calculate the average age of entry, the actuary is to assume that the age of a new entrant is 40.

                   Exit rates

3.7        (1)  The table sets out the rates of voluntary exit from the fund that are to be assumed.

 

Age Band

Exit rate

<40

0.05

40‑44

0.04

45‑49

0.04

50‑54

0.04

55‑59

0.08

60

0.12

61‑64

0.10

65

1.00

             (2)  The rate of involuntary exit (including by redundancy, death or invalidity) to be assumed is zero.

                   Pensions

3.8        (1)  If the fund benefit is a single life pension, the pension is to be valued using the assumptions set out in this Part.

             (2)  If the fund benefit is a reversionary pension, the value of the pension is to be taken as the value of the pension assuming it is a single life pension, increased by 10 %.

                   Mortality of pensioners

3.9              The table sets out the rates of pensioner mortality (qx) that are to be assumed.


Age

qx

35‑49

0.003

50‑54

0.004

55

0.005

56

0.006

57

0.006

58

0.007

59

0.008

60

0.008

61

0.009

62

0.010

63

0.012

64

0.013

65

0.014

66

0.016

67

0.017

68

0.019

69

0.021

70

0.023

71

0.026

72

0.029

73

0.032

74

0.035

75

0.039

76

0.043

77

0.048

78

0.053

79

0.059

80

0.064

81

0.070

82

0.077

83

0.085

84

0.095

85

0.106

86

0.116

87

0.128

88

0.139

89

0.149

90

0.159

91

0.168

92

0.176

93

0.184

94

0.193

95

0.202

96

0.211

97

0.219

98

0.228

99

0.236

100

1.000


                   Taxed and untaxed benefits

3.10            If the rules of the fund provide for benefits to be paid on either a taxed or an untaxed basis, the actuary is to assume that the employer component of the fund benefit is paid as a taxed benefit.

Note:          This situation applies to a small number of funds where the employer component of the fund benefit is generally met by a last minute contribution to the superannuation fund.

                   Other assumptions to be set by the actuary

3.11      (1)  Any other assumptions which may be necessary are to be set by the actuary responsible for calculating the new entrant rate.

             (2)  The assumptions are to be based on the assumptions used in the most recent actuarial valuation of the fund, unless the actuary believes, having regard to the expected future experience of the fund, that they are no longer appropriate.

             (3)  If the actuary believes that the assumptions used in the most recent actuarial valuation are no longer appropriate, the assumptions should be set on a best estimate basis.

Part 4Exercise of discretion to pay a benefit greater than the benefit assumed in calculating the new entrant rate

                   Method of working out W in the formula in section 1.8

4.1        (1)  If a discretion is exercised to pay a benefit upon:

                     (a)  voluntary exit; or

                     (b)  redundancy that is not bona fide;

which is greater than the benefit assumed in calculating the new entrant rate, the excess of the actual benefit paid over the amount of the assumed benefit at the time the actual benefit is paid (W) forms part of the amount of notional taxed contributions for the member for the financial year in which the benefit is paid.

             (2)  For the formula in section 1.8:

                     (a)  in a financial year in which the trustee does not exercise a discretion to pay a benefit to the member which is greater than the assumed benefit, W equals zero; and

                     (b)  in any other financial year, W equals an amount worked out on advice from an actuary that represents the excess of the actual benefit paid to the member over the amount of the assumed benefit at the time the actual benefit is paid.

Note:          If the trustee decides to pay an untaxed benefit rather than a taxed benefit, any excess of the amount of the untaxed benefit over the amount of the taxed benefit that would otherwise have been payable is not to be included in W.

Part 5Member has changed benefit category

                   Method of working out X in the formula in section 1.8

5.1        (1)  If a member’s accrued retirement benefit increases during a financial year as a result of a change of benefit category or as a result of an exercise of discretion, an additional amount (X) may need to be included in the amount of notional taxed contributions for the financial year.

             (2)  For the formula in section 1.8:

                     (a)  in a financial year in which the member’s accrued retirement benefit does not increase as a result of a change in benefit category or as a result of an exercise of discretion, X equals zero; and

                     (b)  in any other financial year, X 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 benefit category or as a result of the exercise of the discretion.

5.2              The economic and other assumptions to be used are set out in Part 3.

Part 6Governing rules have changed

                   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.

             (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.

6.2              The economic and other assumptions to be used are set out in Part 3.

Part 7Non‑arm’s length increase in superannuation salary

                   Method of working out Z in the formula in section 1.8

7.1        (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 taxed contributions for the financial year.

             (2)  For the formula in section 1.8:

                     (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.

7.2              The economic and other assumptions to be used are set out in Part 3.

Schedule 1AAWorking out defined benefit contributions

Note:       See subregulation 293‑115.20(2).

Part 1Preliminary

  

1  Meaning of accruing member

                   An accruing member of a superannuation fund for a financial year, is an accruing member within the meaning given by subregulation 293‑115.05(2).

2  Meaning of benefit category

             (1)  A benefit category is a category of membership of a defined benefit fund as certified by an actuary.

             (2)  An actuary must not certify a category of membership to be a benefit category unless the actuary is satisfied that:

                     (a)  each hypothetical new entrant to the benefit category with the same entry age would accrue retirement benefits on substantially the same basis; or

                     (b)  if any 2 hypothetical new entrants to the benefit category accrued retirement benefits on a different basis, the new entrant rates for each member calculated under Parts 2 and 3 would be equal.

3  Accruing member must not belong to more than one benefit category at the same time unless certified by an actuary

             (1)  An accruing member must not belong to more than one benefit category of the same defined benefit fund on the same day unless certified by an actuary.

             (2)  An actuary must not certify that a member belongs to more than one benefit category on the same day unless the actuary is satisfied that the amount of defined benefit contributions to be reported will not be materially different from the amount of defined benefit contributions that would have been reported had the member belonged to only one benefit category on each relevant day.

Note:          An accruing member would be ordinarily expected to belong to only one benefit category at a time. However, there might be circumstances in certain funds where it is materially more practical for the purpose of calculating the total amount of defined benefit contributions to deem that some members belong to more than one benefit category from time to time.

4  Method for determining amount of defined benefit contributions

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

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.

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

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.

             (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:

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.

Part 2New entrant rate

  

5  Method of working out new entrant rate for a benefit category

             (1)  The new entrant rate for a benefit category is the rate calculated under this Part and using the assumptions set out in Part 3.

             (2)  The new entrant rate for a benefit category is the rate that represents the long‑term cost, expressed as a percentage of superannuation salary, of providing the benefits payable on a voluntary exit to a hypothetical new entrant to the benefit category.

             (3)  The new entrant rate is calculated as the present value of the benefits payable on voluntary exit (resignation, early retirement, or retirement) under the rules of the defined benefit fund which are applicable to a new entrant to the benefit category divided by the present value of future superannuation salaries payable to the new entrant.

             (4)  The present value of the benefits payable is to be calculated having regard to the rules and practice of the defined benefit fund including benefit structure, caps, member options, reasonably expected discretions and member contributions, and using the economic, decrement and other assumptions set out in Part 3.

6  New entrant rate to be based on period of membership needed to reach maximum benefit accrual

             (1)  If the rules of the defined benefit fund applicable to the benefit category provide for a maximum benefit accrual, the new entrant rate is to be calculated on the basis that the benefit is funded over the period to when maximum accrual is attained.

             (2)  For practical purposes this means that, for the purpose of calculating the present value of future salaries payable to the new entrant, the superannuation salary is to be assumed to be zero at those ages after reaching maximum benefit accrual.

Example:    If maximum accrual is attained after 20 years of membership, the superannuation salary for a 30‑year‑old new entrant will be assumed to be zero at age 50 and above for the purpose of calculating the present value of future salaries payable to the new entrant.

7  New entrant rate to be rounded down

                   The new entrant rate is to be rounded down to the lower 1 percentage point.

Example:    10.6% would be rounded down to 10%.

8  No allowance for administration expenses or income tax on assessable contributions

                   The new entrant rate is to be calculated ignoring:

                     (a)  administration expenses; and

                     (b)  income tax on assessable contributions.

Note:          These items are allowed for in the formula in subclause 4(3) by multiplying by 1.2.

9  Certain discretions to be allowed for

             (1)  The new entrant rate is to be calculated assuming that certain discretions are always exercised.

             (2)  Subject to subclause (3), if the fund rules provide a discretion to pay, on voluntary exit, a benefit that is higher than the standard benefit, the actuary must assume that a higher benefit is always paid on voluntary exit on or after age 55.

             (3)  If the higher benefit mentioned in subclause (2) exceeds the accrued retirement benefit, the actuary may assume that the benefit is an amount:

                     (a)  greater than or equal to the accrued retirement benefit; and

                     (b)  less than or equal to the higher benefit.

             (4)  If the actuary believes that there is a reasonable expectation that a higher benefit than either the standard benefit or the accrued retirement benefit will be paid, then the actuary should assume that the benefit paid on voluntary exit on or after age 55 is always equal to the benefit reasonably expected to be paid.

Note:          In considering whether there is a reasonable expectation that a higher benefit will be paid, it would generally not be appropriate to assume payment unless such an assumption was adopted in the most recent actuarial review.

Part 3Valuation parameters

  

10  Application of economic, decrement and other parameters

                   For the purpose of working out the new entrant rate for a benefit category mentioned in Part 1 or 2, the actuary is to apply the economic, decrement and other parameters set out in this Part.

11  Discount rate

             (1)  The discount rate to be used to discount projected future benefits and salaries is 8% per year.

             (2)  The discount rate is not to be adjusted for investment expenses or investment‑related taxation or for any other reason.

12  Fund earning rate and crediting rate

             (1)  If necessary, the fund earning rate to be assumed is 8% per year.

             (2)  If necessary, the assumed crediting rate is to be based on the assumed fund earning rate.

13  Rate of future salary or wages growth

             (1)  The rate of salary or wages growth to be applied is 4.5% per year.

             (2)  This rate is to be used:

                     (a)  to project the value of future salary or wages; and

                     (b)  to project benefits that increase in accordance with a general wage index (for example, average weekly earnings).

14  Rate of increase in price indices

                   If a benefit is linked to an increase in a price index (for example, the Consumer Price Index), the rate of increase in the price index to be applied is 2.5% per year.

15  New entrant age

             (1)  The age of new entrants to be assumed is based on the average age of entry to the fund of the persons who were defined benefit members of the fund at 1 July 2007.

             (2)  The following table sets out the age of new entrants that is to be assumed.

 

New entrant ages

Item

Average age last birthday at commencement in fund of defined benefit members of the fund at 1 July 2007

New entrant age to be assumed

1

<30

25

2

30‑34

30

3

35‑39

35

4

40‑44

40

5

45‑49

45

6

50+

50

 

             (3)  If:

                     (a)  there has been a transfer of defined benefit members from a predecessor fund into the fund, or a sub‑fund of the fund; and

                     (b)  the actuary considers it reasonable to do so;

the actuary may determine a new entrant age for the fund or sub‑fund taking account of the average age of entry used for or relevant for those members in the predecessor fund.

             (4)  In this clause, defined benefit member does not include a person who:

                     (a)  is receiving only a pension benefit from the fund; or

                     (b)  has deferred his or her benefit entitlement in the fund.

             (5)  If the actuary believes that there is insufficient information available to calculate the average age of entry, the actuary is to assume that the age of a new entrant is 40.

16  Exit rates

             (1)  The following table sets out the rates of voluntary exit from the fund that are to be assumed.

 

Voluntary exit rates

Item

Age Band

Exit rate

1

<40

0.05

2

40‑44

0.04

3

45‑49

0.04

4

50‑54

0.04

5

55‑59

0.08

6

60

0.12

7

61‑64

0.10

8

65

1.00

 

             (2)  The rate of involuntary exit (including by redundancy, death or invalidity) to be assumed is zero.

17  Pensions

             (1)  If the benefit is a single life pension, the pension is to be valued using the assumptions set out in this Part.

             (2)  If the benefit is a reversionary pension, the value of the pension is to be taken as the value of the pension assuming it is a single life pension, increased by 10%.

18  Mortality of pensioners

                   The following table sets out the rates of pensioner mortality (qx) that are to be assumed.

 

Pensioner mortality rates

Item

Age

qx

1

35‑49

0.003

2

50‑54

0.004

3

55

0.005

4

56

0.006

5

57

0.006

6

58

0.007

7

59

0.008

8

60

0.008

9

61

0.009

10

62

0.010

11

63

0.012

12

64

0.013

13

65

0.014

14

66

0.016

15

67

0.017

16

68

0.019

17

69

0.021

18

70

0.023

19

71

0.026

20

72

0.029

21

73

0.032

22

74

0.035

23

75

0.039

24

76

0.043

25

77

0.048

26

78

0.053

27

79

0.059

28

80

0.064

29

81

0.070

30

82

0.077

31

83

0.085

32

84

0.095

33

85

0.106

34

86

0.116

35

87

0.128

36

88

0.139

37

89

0.149

38

90

0.159

39

91

0.168

40

92

0.176

41

93

0.184

42

94

0.193

43

95

0.202

44

96

0.211

45

97

0.219

46

98

0.228

47

99

0.236

48

100

1.000

19  Other assumptions to be set by the actuary

             (1)  Any other assumptions which may be necessary are to be set by the actuary responsible for calculating the new entrant rate.

             (2)  The assumptions are to be based on the assumptions used in the most recent actuarial valuation of the fund, unless the actuary believes, having regard to the expected future experience of the fund, that they are no longer appropriate.

             (3)  If the actuary believes that the assumptions used in the most recent actuarial valuation are no longer appropriate, the assumptions should be set on a best estimate basis.

Part 4Exercise of discretion to pay a benefit greater than the benefit assumed in calculating the new entrant rate

  

20  Method of working out W in the formula in subclause 4(2)

             (1)  If a discretion is exercised to pay a benefit upon:

                     (a)  voluntary exit; or

                     (b)  redundancy that is not bona fide;

which is greater than the benefit assumed in calculating the new entrant rate, the excess of the actual benefit paid over the amount of the assumed benefit at the time the actual benefit is paid (W) forms part of the amount of notional employer contributions for the member for the financial year in which the benefit is paid.

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

                     (a)  in a financial year in which the trustee does not exercise a discretion to pay a benefit to the member which is greater than the assumed benefit—W equals zero; and

                     (b)  in any other financial year—W equals an amount worked out on advice from an actuary that represents the excess of the actual benefit paid to the member over the amount of the assumed benefit at the time the actual benefit is paid.

Part 5Member has changed benefit category

  

21  Method of working out X in the formula in subclause 4(2)

             (1)  If a member’s accrued retirement benefit increases during a financial year as a result of a change of benefit category or as a result of an exercise of discretion, an additional amount (X) may need to be included in the amount of notional employer contributions for the financial year.

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

                     (a)  in a financial year in which the member’s accrued retirement benefit does not increase as a result of a change in benefit category or as a result of an exercise of discretion—X equals zero; and

                     (b)  in any other financial year—X 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 benefit category or as a result of the exercise of the discretion.

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

Part 6Governing rules have changed

  

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

             (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.

             (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.

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

Part 7Non‑arm’s length increase in superannuation salary

  

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

             (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.

             (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.

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

Schedule 1BValuation factors

(regulations 307‑205.01 and 307‑205.02)

  

1                 Income stream valuation factors

             (1)  For subregulation 307‑205.01(2), the applicable factor is the factor given in Table 1 at the age which is the greater of:

                     (a)  the minimum age at which a retirement benefit can be taken without requiring the consent of the employer; and

                     (b)  the member’s actual age as at his or her last birthday before 1 July 2007.

             (2)  For subregulation 307‑205.02(2), if the superannuation income stream in respect of the interest is payable for the life of the member, the applicable factor is the factor given in Table 1 for the age of the member at his or her last birthday before the day after the date on which the superannuation income stream is to be valued.

             (3)  For subregulation 307‑205.02(2), if the superannuation income stream in respect of the interest is payable for a fixed term, the applicable factor is the factor given in Table 2 for the number of complete years remaining in the term of the superannuation income stream on the day preceding the date on which the superannuation income stream is to be valued.

Table 1

 


Age

Factor for indexed lifetime income stream

Factor for non‑indexed lifetime income stream

18

23.238

15.405

19

23.158

15.385

20

23.084

15.366

21

23.016

15.349

22

22.956

15.334

23

22.906

15.322

24

22.862

15.312

25

22.816

15.302

26

22.763

15.289

27

22.694

15.271

28

22.612

15.248

29

22.523

15.223

30

22.422

15.194

31

22.310

15.160

32

22.193

15.124

33

22.076

15.086

34

21.950

15.045

35

21.821

15.002

36

21.691

14.958

37

21.553

14.911

38

21.410

14.861

39

21.266

14.809

40

21.113

14.754

41

20.956

14.695

42

20.790

14.632

43

20.609

14.562

44

20.421

14.487

45

20.229

14.409

46

20.030

14.326

47

19.823

14.239

48

19.610

14.148

49

19.391

14.052

50

19.164

13.950

51

18.931

13.844

52

18.691

13.732

53

18.443

13.615

54

18.189

13.492

55

17.927

13.364

56

17.659

13.230

57

17.383

13.089

58

17.100

12.943

59

16.810

12.790

60

16.513

12.631

61

16.209

12.465

62

15.891

12.287

63

15.558

12.099

64

15.213

11.900

65

14.861

11.693

66

14.506

11.480

67

14.144

11.260

68

13.775

11.032

69

13.396

10.794

70

13.011

10.548

71

12.627

10.297

72

12.230

10.035

73

11.815

9.756

74

11.398

9.471

75

10.983

9.183

76

10.566

8.889

77

10.144

8.587

78

9.723

8.282

79

9.314

7.980

80

8.898

7.669

81

8.486

7.357

82

8.087

7.051

83

7.697

6.748

84

7.323

6.455

85

6.966

6.172

86

6.627

5.901

87

6.311

5.647

88

6.010

5.402

89

5.728

5.171

90

5.465

4.954

91

5.218

4.750

92

4.991

4.561

93

4.773

4.379

94

4.566

4.205

95

4.360

4.031


Table 2

 


Number of years

Factor for indexed fixed‑term income stream

Factor for non‑indexed fixed‑term income stream

0

0.000

0.000

1

0.981

0.969

2

1.925

1.879

3

2.834

2.734

4

3.709

3.536

5

4.550

4.289

6

5.360

4.996

7

6.140

5.661

8

6.891

6.284

9

7.613

6.870

10

8.308

7.420

11

8.977

7.936

12

9.621

8.421

13

10.241

8.876

14

10.837

9.303

15

11.411

9.705

16

11.963

10.081

17

12.495

10.435

18

13.007

10.768

19

13.499

11.079

20

13.973

11.372

21

14.430

11.647

22

14.869

11.906

23

15.291

12.148

24

15.698

12.376

25

16.090

12.590

26

16.466

12.790

27

16.829

12.979

28

17.178

13.156

29

17.514

13.322

30

17.837

13.478


2                 Lump sum valuation factors

             (1)  For subregulation 307‑205.02(2), the applicable factor is the discount valuation factor mentioned in subclause (3) that applies for the minimum deferral period.

             (2)  For the purposes of this clause, the minimum deferral period in relation to a lump sum that is to be paid at a time after the date on which an interest is to be valued is the number of complete years between the day before the date on which the interest is to be valued and the earliest date at which the lump sum can be paid.

             (3)  This subclause sets out the discount valuation factors, in accordance with the following principles:

                     (a)  the factors in column 2 of table 3 apply if the lump sum is not indexed;

                     (b)  the factors in column 3 of table 3 apply if the lump sum is indexed in accordance with the consumer price index;

                     (c)  the factors in column 4 of table 3 apply if the lump sum is indexed in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics);

                     (d)  if the lump sum is indexed in accordance with a fund crediting rate, the factor is 1.

Table 3

Minimum deferral period

Lump sum not indexed

CPI indexed lump sum

Wage indexed lump sum

0

1.000

1.000

1.000

1

0.939

0.963

0.977

2

0.882

0.927

0.954

3

0.829

0.892

0.932

4

0.779

0.859

0.910

5

0.732

0.827

0.889

6

0.689

0.797

0.869

7

0.648

0.768

0.849

8

0.610

0.740

0.830

9

0.575

0.714

0.811

10

0.542

0.688

0.793

11

0.511

0.664

0.776

12

0.483

0.641

0.759

13

0.456

0.619

0.742

14

0.431

0.598

0.727

15

0.409

0.579

0.711

16

0.387

0.560

0.697

17

0.368

0.542

0.683

18

0.350

0.525

0.669

19

0.333

0.509

0.656

20

0.318

0.494

0.644

21

0.304

0.480

0.632

22

0.291

0.467

0.621

23

0.279

0.454

0.610

24

0.269

0.443

0.600

25

0.259

0.432

0.590

26

0.250

0.422

0.582

27

0.243

0.413

0.573

28

0.236

0.404

0.565

29

0.229

0.397

0.558

30

0.224

0.390

0.552

 


Schedule 2Translation of currency amounts—rules and other requirements

(item 12 of the table in subsection 960‑50(6) of the Act, as modified, and subregulation 960‑50.01(2))

Part 1Rules and requirements for item 12 of the table in subsection 960‑50(6) of the Act

1.1  Exchange rate—consistency with accounting standards used by entity

                   For item 12 of the table in subsection 960‑50(6) of the Act, as modified, if:

                     (a)  a financial report (within the meaning of the Corporations Act 2001) prepared by an entity:

                              (i)  complies with the accounting standards under the Corporations Act 2001; and

                             (ii)  translates amounts into Australian currency using particular exchange rates; and

                            (iii)  has been audited in accordance with the Corporations Act 2001; and

                     (b)  the entity, or another entity, wishes to translate an amount into Australian currency in accordance with that item, using the exchange rate used in that financial report to translate a corresponding amount;

the entity mentioned in paragraph (b) must translate all amounts into Australian currency using the exchange rates that were used in that financial report to translate corresponding amounts.

1.2  Choice of daily exchange rate

             (1)  For item 12 of the table in subsection 960‑50(6) of the Act, as modified, an entity may translate all amounts of a particular currency, relating to a particular day, into Australian currency using an exchange rate that is applicable at a time, on that day, chosen by the entity (a daily exchange rate).

             (2)  If the entity chooses a daily exchange rate relating to a particular day, the entity must choose a daily exchange rate relating to each subsequent day in the income year using the same time of the day as the time to which the first daily exchange rate related.

             (3)  However:

                     (a)  the entity is not permitted to translate amounts using a daily exchange rate if the use of the rate would not be appropriate having regard to the entity’s business or activities; and

                     (b)  the entity must obtain the rate from a source that is not an associate of the entity, and not the entity itself, unless the Commissioner notifies the entity that it may obtain the rate from 1 or more specified sources; and

                     (c)  the entity must translate amounts relating to the relevant day using that rate.

Example:    If an entity is a trader that takes currency positions as part of its business, the use of a single exchange rate for its activities on a day would not be appropriate having regard to its business.

Note:          Associate is defined in subsection 995‑1(1) of the Act.

1.3  Choice of average exchange rate

             (1)  For item 12 of the table in subsection 960‑50(6) of the Act, as modified, an entity may, in a period, translate an amount into Australian currency using an exchange rate that is an average of all of the exchange rates that are applicable during a period, not exceeding 12 months, that is chosen by the entity (an average exchange rate).

             (2)  However:

                     (a)  the entity is not permitted to translate an amount using an average exchange rate unless it appears to the entity on reasonable grounds that the rate would be a reasonable approximation of the exchange rate or rates that the entity would have used if the entity had used the exchange rate required by another appropriate item of the table in subsection 960‑50(6) of the Act; and

                     (b)  the entity must obtain:

                              (i)  all of the exchange rates that it will use to work out the average exchange rate; or

                             (ii)  an average exchange rate that has been worked out for a particular period;

                            from 1 or more sources that are not associates of the entity, and not the entity itself, unless the Commissioner notifies the entity that it may obtain the rate or rates from 1 or more specified sources; and

                     (c)  the entity must translate amounts relating to the relevant period using the rate.

Note 1:       Item 12 of the table in subsection 960‑50(6) of the Act is available as an alternative to the special translation rules in items 1 to 11A (inclusive) in that table. Therefore, subclause (2) requires the entity to consider whether using the translation rules in item 12 would lead to a reasonable approximation with the translation rules in another appropriate item of the table.

Note 2:       Associate is defined in subsection 995‑1(1) of the Act.

Part 2Translation of foreign currency amounts into Australian currency—rules and requirements for item 11A of the table in subsection 960‑50(6) of the Act

2.1  Exchange rate—consistency with an entity’s financial records

                   For item 11A of the table in subsection 960‑50(6) of the Act, as modified, if:

                     (a)  an entity keeps financial records (within the meaning of the Corporations Act 2001) of the exchange rates that the entity uses to translate amounts into Australian currency; and

                     (b)  the entity, or another entity, translates an amount to which the records correspond into Australian currency in accordance with item 11A;

the exchange rate that the entity mentioned in paragraph (b) uses must be the same as the exchange rate specified in those records for translating the amount into Australian currency.


Schedule 4Constitutionally protected superannuation funds—State legislation

Note:       See regulation 995‑1.04.

  

Constitutionally protected superannuation funds

Item

Legislation

Part 1     New South Wales

101

Judges’ Pensions Act 1953

Part 2     Victoria

201

Attorney‑General and Solicitor‑General Act 1972

202

Coal Mines (Pensions) Act 1958

203

Constitution Act 1975

204

County Court Act 1958

205

Magistrates’ Court Act 1989


210

Ombudsman Act 1973 (subsection 9(2))

211

Public Prosecutions Act 1994

212

Supreme Court Act 1986

Part 3     Queensland

301

Governor’s Pension Act 1977

302

Judges (Pensions and Long Leave) Act 1957

Part 4     Western Australia

402

Judges’ Salaries and Pensions Act 1950

403

Parliamentary Superannuation Act 1970

404

State Superannuation Act 2000

Part 5     South Australia

501

Governors’ Pensions Act 1976

502

Judges’ Pensions Act 1971

503

Parliamentary Superannuation Act 1974

504

Police Superannuation Act 1990

505

Southern State Superannuation Act 2009 (other than section 30(2)(h))

506

Superannuation Act 1988 (other than section 52 and Schedule 3)

Part 6     Tasmania

602

Judges’ Contributory Pensions Act 1968

Schedule 5Approved stock exchanges

(regulation 995‑1.05)

  

 


Argentina

Buenos Aires stock exchange

Cordoba stock exchange

La Plata stock exchange

Mendoza stock exchange

Rosario stock exchange

Australia

Asia Pacific Exchange Limited

ASX Limited

National Stock Exchange of Australia Limited

SIM Venture Securities Exchange Ltd

Austria

Vienna stock exchange

Belgium

Antwerp stock exchange

Brussels stock exchange

Liege stock exchange

Bermuda

Bermuda stock exchange

Brazil

Belo Horizonte stock exchange

Curitiba stock exchange

Fortaleza stock exchange

Porto Alegre stock exchange

Recife stock exchange

Rio de Janeiro stock exchange

Salvador stock exchange

Santos stock exchange

Sao Paulo stock exchange

Canada

Calgary stock exchange

Montréal stock exchange

Toronto stock exchange

Vancouver stock exchange

Winnipeg stock exchange

Chile

Santiago stock exchange

Valparaiso stock exchange

China

Shanghai stock exchange

Shenzhen stock exchange

Colombia

Bogota stock exchange

Denmark

Copenhagen stock exchange

Finland

Helsinki stock exchange

France

Bordeaux stock exchange

Lille stock exchange

Lyon stock exchange

Marseille stock exchange

Paris stock exchange

Germany

Berlin stock exchange

Dusseldorf stock exchange

Frankfurt stock exchange

Hamburg stock exchange

Hannover stock exchange

Munich stock exchange

Stuttgart stock exchange

Greece

Athens stock exchange

Hong Kong

Hong Kong stock exchange

Hungary

Budapest stock exchange

India

Bombay stock exchange

Calcutta stock exchange

Delhi stock exchange

Madras stock exchange

Indonesia

Jakarta stock exchange

Surabaya stock exchange

Ireland

Dublin stock exchange

Israel

Tel Aviv stock exchange

Italy

Bologna stock exchange

Florence stock exchange

Genoa stock exchange

Milan stock exchange

Naples stock exchange

Palermo stock exchange

Rome stock exchange

Trieste stock exchange

Turin stock exchange

Venice stock exchange

Jamaica

Jamaica stock exchange

Japan

Hiroshima stock exchange

Kyoto stock exchange

Nagoya stock exchange

Niigata stock exchange

Osaka stock exchange

Fukuoka stock exchange

Sapporo stock exchange

Tokyo stock exchange

Korea, Republic of

Seoul stock exchange

Luxembourg

Luxembourg stock exchange

Malaysia

Kuala Lumpur stock exchange

Mexico

Mexican stock exchange

Netherlands

Amsterdam stock exchange

New Zealand

New Zealand stock exchange

Nigeria

Nigerian stock exchange

Norway

Oslo stock exchange

Pakistan

Karachi stock exchange

Peru

Lima Stock Exchange

Philippines

Makati stock exchange

Manila stock exchange

Poland

Warsaw Stock Exchange

Portugal

Lisbon stock exchange

Oporto stock exchange

Singapore

Singapore stock exchange

Slovakia

Bratislava stock exchange

Slovenia

Ljubljana stock exchange

South Africa

Johannesburg stock exchange

Spain

Barcelona stock exchange

Bilbao stock exchange

Madrid stock exchange

Valencia stock exchange

Sri Lanka

Colombo stock exchange

Sweden

Stockholm stock exchange

Switzerland

Basel stock exchange

Geneva stock exchange

Zurich stock exchange

Taiwan

Taiwan stock exchange

Thailand

Thailand stock exchange

Trinidad and Tobago

Trinidad and Tobago stock exchange

Turkey

Istanbul stock exchange

United Kingdom

London stock exchange

United States

American stock exchange

Boston stock exchange

Cincinnati stock exchange

Midwest stock exchange

NASDAQ stock exchange

New York stock exchange

Pacific stock exchange

Philadelphia stock exchange

Uruguay

Montevideo stock exchange

Venezuela

Caracas stock exchange

Maracaibo stock exchange

Yugoslavia, Federal Republic of

Belgrade stock exchange

Zimbabwe

Zimbabwe stock exchange



Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

 

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

 

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

 

Abbreviation key—Endnote 2

The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

 

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

 

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

 

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

 

Uncommenced amendments—Endnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5.

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

 

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

 

Miscellaneous—Endnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

 

Endnote 2—Abbreviation key

 

ad = added or inserted

pres = present

am = amended

prev = previous

c = clause(s)

(prev) = previously

Ch = Chapter(s)

Pt = Part(s)

def = definition(s)

r = regulation(s)/rule(s)

Dict = Dictionary

Reg = Regulation/Regulations

disallowed = disallowed by Parliament

reloc = relocated

Div = Division(s)

renum = renumbered

exp = expired or ceased to have effect

rep = repealed

hdg = heading(s)

rs = repealed and substituted

LI = Legislative Instrument

s = section(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

mod = modified/modification

Sdiv = Subdivision(s)

No = Number(s)

SLI = Select Legislative Instrument

o = order(s)

SR = Statutory Rules

Ord = Ordinance

Sub‑Ch = Sub‑Chapter(s)

orig = original

SubPt = Subpart(s)

par = paragraph(s)/subparagraph(s)
/sub‑subparagraph(s)

 

 

Endnote 3—Legislation history

 

Number and year

FRLI registration
or gazettal

Commencement

Application, saving and transitional provisions

1997 No. 198

16 July 1997

1 July 1997

 

1998 No. 85

14 May 1998

14 May 1998

1999 No. 12

11 Feb 1999

11 Feb 1999

1999 No. 78

19 May 1999

1 July 1999

1999 No. 147

30 June 1999

1 July 1999

2000 No. 1

7 Feb 2000

7 Feb 2000

2000 No. 128

22 June 2000

22 June 2000

2001 No. 18

13 Feb 2001

1 July 1997 (see r. 2)

2001 No. 26

23 Feb 2001

23 Feb 2001

2001 No. 288

5 Oct 2001

5 Oct 2001

2001 No. 321

15 Oct 2001

15 Dec 2001

2002 No. 46

7 Mar 2002

7 Mar 2002

2002 No. 65

5 Apr 2002

5 Apr 2002

2002 No. 170

3 July 2002

3 July 2002

2002 No. 172

5 July 2002

5 July 2002

2003 No. 39

27 Mar 2003

rr. 1–3 and Schedule 1: 1 July 2001
Remainder: 6 July 2002

2003 No. 40

27 Mar 2003

27 Mar 2003

2003 No. 108

4 June 2003

4 June 2003

2003 No. 373

23 Dec 2003

23 Dec 2003

2004 No. 52

30 Mar 2004

30 Mar 2004

2004 No. 278

26 Aug 2004

26 Aug 2004

2004 No. 303

7 Sept 2004

7 Sept 2004

r. 4

2004 No. 330

25 Nov 2004

25 Nov 2004

2005 No. 22

28 Feb 2005 (see F2005L00314)

1 Mar 2005

2005 No. 75

27 Apr 2005 (see F2005L00940)

rr. 1–3 and Schedule 1: 1 July 2003
Remainder: 28 Apr 2005

2005 No. 102

26 May 2005 (see F2005L01200)

rr. 1–4 and Schedule 1: 1 July 2001
Remainder: 27 May 2005

r. 4

2005 No. 207

19 Sept 2005 (see F2005L02673)

1 Oct 2005 (see r. 2)

2005 No. 328

19 Dec 2005 (see F2005L04023)

20 Dec 2005

2006 No. 60

22 Mar 2006 (see F2006L00800)

23 Mar 2006

2006 No. 61

22 Mar 2006 (see F2006L00821)

23 Mar 2006

2006 No. 216

14 Aug 2006 (see F2006L02613)

rr. 1–10 and Schedules 1–7:
14 Sept 2006 (see r. 2(a))
Remainder: 1 Jan 2007 (see r. 2(b))

r. 12

2006 No. 306

17 Nov 2006 (see F2006L03670)

18 Nov 2006

2006 No. 367

14 Dec 2006 (see F2006L03995)

10 June 2005

2006 No. 368

14 Dec 2006 (see F2006L04000)

15 Dec 2006

2007 No. 44

23 Mar 2007 (see F2007L00581)

24 Mar 2007

2007 No. 90

13 Apr 2007 (see F2007L00956)

rr. 1–3 and Schedule 1:
14 Apr 2007
r. 4 and Schedule 2: 1 July 2007
Remainder: (a)

r. 5

2007 No. 103

27 Apr 2007 (see F2007L01126)

1 July 2007

r. 3

2007 No. 177

26 June 2007 (see F2007L01757)

27 June 2007

2007 No. 178

26 June 2007 (see F2007L01735)

27 June 2007 (see r. 2)

r. 4

2007. No. 202

29 June 2007 (see F2007L01893)

1 July 2007

2007 No. 328

2 Oct 2007 (see F2007L03775)

3 Oct 2007

r. 4

2007 No. 329

2 Oct 2007 (see F2007L03793)

3 Oct 2007

2007 No. 330

2 Oct 2007 (see F2007L03803)

3 Oct 2007

2008 No. 35

25 Mar 2008 (see F2008L00923)

26 Mar 2008

2008 No. 81

16 May 2008 (see F2008L01434)

17 May 2008

2008 No. 131

29 June 2008 (see F2008L02183)

1 July 2008

2008 No. 144

29 June 2008 (see F2008L02193)

rr. 1–3 and Schedule 1: 1 July 2007
Remainder: 30 June 2008

2008 No. 145

29 June 2008 (see F2008L02266)

24 June 2008 (see r. 2)

r. 4

2009 No. 13

6 Feb 2009 (see F2009L00235)

7 Feb 2009

2009 No. 54

30 Mar 2009 (see F2009L01191)

31 Mar 2009

2009 No. 177

10 July 2009 (see F2009L02714)

11 July 2009

r. 4

2009 No. 247

21 Sept 2009 (see F2009L03523)

22 Sept 2009

2009 No. 388

16 Dec 2009 (see F2009L04411)

rr. 1–3 and Schedule 1: 1 July 2008
r. 4 and Schedule 2:  1 Aug 2009
r. 5 and Schedule 3: 17 Dec 2009

2010 No. 8

11 Feb 2010 (see F2010L00318)

1 July 2009

2010 No. 9

11 Feb 2010 (see F2010L00303)

12 Feb 2010

2010 No. 73

14 Apr 2010 (see F2010L00917)

15 Apr 2010

2010 No. 74

15 Apr 2010 (see F2010L00850)

16 Apr 2010

2011 No. 5

14 Feb 2011 (see F2011L00251)

15 Feb 2011

2011 No. 35

15 Mar 2011 (see F2011L00420)

16 Mar 2011

2011 No. 57

21 Apr 2011 (see F2011L00634)

22 Apr 2011

2011 No. 80

3 June 2011 (see F2011L00942)

26 Mar 2009

r. 4

2011 No. 120

30 June 2011 (see F2011L01364)

1 July 2011

2011 No. 182

5 Oct 2011 (see F2011L02022)

6 Oct 2011

2012 No. 47

11 Apr 2012 (see F2012L00835)

12 Apr 2012

2012 No. 310

11 Dec 2012 (see F2012L02398)

12 Dec 2012

24, 2013

4 Mar 2013 (see F2013L00394)

5 Mar 2013

84, 2013

16 May 2013 (see F2013L00784)

17 May 2013

103, 2013

3 June 2013 (see F2013L00894)

4 June 2013

127, 2013

17 June 2013 (see F2013L01019)

18 June 2013

279, 2013

16 Dec 2013 (see F2013L02123)

Sch 1 (items 11–22): 17 Dec 2013

6, 2014

19 Feb 2014 (see F2014L00159)

Sch 1: 20 Feb 2014

52, 2014

16 May 2014 (see F2014L00549)

Sch 3: 17 May 2014

90, 2014

13 June 2014 (see F2014L00712)

Sch 2: 14 June 2014

 

(a)             Regulation 2(c) of SLI 2007 No. 90 provides as follows:

    (c)   immediately after the commencement of Schedule 2—regulation 5 and Schedule 3.

Endnote 4—Amendment history

 

Provision affected

How affected

Part 1

 

Heading to Part 1.................

ad. 2002 No. 172

r. 1......................................

rs. 1999 No. 12

Part 2

 

Heading to Part 2.................

ad. 2002 No. 172

Division 26

 

Div. 26 of Part 2..................

ad. 2007 No. 90

r. 26‑85.01..........................

ad. 2007 No. 90

Division 28

 

Heading to Div. 28..............
of Part 2

ad. 2002 No. 172

r. 28‑25.01..........................

ad. 1998 No. 85

 

am. 1999 No. 12

 

rs. 2000 No. 1

Division 30

 

Heading to Div. 30..............
of Part 2

ad. 2002 No. 172

r. 30‑212.01........................

ad. 2000 No. 128

 

am. 2002 No. 172

r. 30‑212.02........................

ad. 2000 No. 128

 

rs. 2002 No. 172

 

am No 90, 2014

rr. 30‑212.03, 30‑212.04....

ad. 2000 No. 128

 

rep. 2002 No. 172

r. 30‑212.05........................

ad. 2000 No. 128

r. 30‑212.06........................

ad. 2000 No. 128

r. 30‑212.07........................

ad. 2000 No. 128

r. 30‑212.08........................

ad. 2000 No. 128

r. 30‑212.09........................

ad. 2000 No. 128

 

am No 90, 2014

r. 30‑212.10........................

ad. 2000 No. 128

 

am. 2002 No. 172

 

rs No 90, 2014

r. 30‑212.11........................

ad. 2000 No. 128

 

am. 2002 No. 172

 

rs No 90, 2014

r. 30‑212.12........................

ad. 2000 No. 128

Division 31

 

Div. 31 of Part 2..................

ad. 2002 No. 172

r. 31‑15.01..........................

ad. 2002 No. 172

r. 31‑15.02..........................

ad. 2002 No. 172

 

am No 90, 2014

r. 31‑15.03..........................

ad. 2002 No. 172

r. 31‑15.04..........................

ad. 2002 No. 172

r. 31‑15.05..........................

ad. 2002 No. 172

r. 31‑15.06..........................

ad. 2002 No. 172

r. 31‑15.07..........................

ad. 2002 No. 172

 

rs No 90, 2014

r. 31‑15.08..........................

ad. 2002 No. 172

 

rs No 90, 2014

r. 31‑15.09..........................

ad. 2002 No. 172

Division 50

 

Heading to Div. 50..............
of Part 2

ad. 2002 No. 172

r. 50‑50.01..........................

ad. 1999 No. 78

 

rs. 2001 No. 18; 2002 No. 170; 2003 No. 108

 

am. 2003 No. 373; 2006 No. 367

r. 50‑50.02..........................

ad. 2003 No. 108

r. 50‑50.03..........................

ad. No. 127, 2013

r. 50‑55.01..........................

ad. 1999 No. 78

 

rep. 2006 No. 216

r. 50‑70.01..........................

ad. 1999 No. 78

 

rep. 2006 No. 216

Division 51

 

Heading to Div. 51..............
of Part 2

ad. 2002 No. 172

r. 51‑5.01............................

rs. 2004 No. 278; 2006 No. 368

r. 51‑42.01..........................

ad. 2008 No. 145

Division 61

 

Heading to Div. 61..............
of Part 2

ad. 2002 No. 172
rs. 2008 No. 131; No. 84, 2013

Div. 61 of Part 2..................

rs. No. 84, 2013

Subdivision 61‑G

 

r. 61‑220.01........................

ad. 2008 No. 131

 

am. 2011 No. 120

 

rs. No. 84, 2013

r. 61‑220.02........................

ad . No. 84, 2013

r. 61‑330.01........................

ad. 1999 No. 147

 

am. 2001 No. 321; 2005 No. 207; 2006 No. 60

 

rep. 2008 No. 131

Division 70

 

Heading to Div. 70..............
of Part 2

ad. 2002 No. 172

Division 83A

 

Div. 83A of Part 2...............

ad. 2010 No. 8

r. 83A‑5.01.........................

ad. 2010 No. 8

r. 83A‑315.01.....................

ad. 2010 No. 8

r. 83A‑315.02.....................

ad. 2010 No. 8

r. 83A‑315.03.....................

ad. 2010 No. 8

r. 83A‑315.04.....................

ad. 2010 No. 8

r. 83A‑315.05.....................

ad. 2010 No. 8

r. 83A‑315.06.....................

ad. 2010 No. 8

r. 83A‑315.07.....................

ad. 2010 No. 8

r. 83A‑315.08.....................

ad. 2010 No. 8

r. 83A‑315.09.....................

ad. 2010 No. 8

Part 2A

 

Heading to Part 2A..............

ad. 2011 No. 80

Division 230

 

Div. 230 of Part 2A.............

ad. 2011 No. 80

r. 230‑355.01......................

ad. 2011 No. 80

Division 290

 

Div. 290 of Part 2................

ad. 2007 No. 90

Subdivision 290‑C

 

r. 290‑170.01......................

ad. 2007 No. 90

Division 292

 

Div. 292 of Part 2................

ad. 2007 No. 90

Subdivision 292‑B

 

Subdiv. 292‑B of Div. 292..

ad. 2007 No. 103

r. 292‑25.01........................

ad. 2007 No. 103

 

am. 2007 No. 202

Subdivision 292–C

 

r. 292–90.01.......................

ad. 2007 No. 90

Subdivision 292‑D

 

Subdiv. 292‑D of Div. 292..

ad. 2007 No. 103

r. 292‑170.01......................

ad. 2007 No. 103

r. 292‑170.02......................

ad. 2007 No. 103

r. 292‑170.03......................

ad. 2007 No. 103

r. 292‑170.04......................

ad. 2007 No. 103

 

am No 52, 2014

r. 292‑170.05......................

ad. 2007 No. 103

 

am. 2007 No. 330; 2009 No. 177

Heading to r. 292‑170.06....

rs. 2009 No. 177

r. 292‑170.06......................

ad. 2007 No. 103

 

am. 2007 No. 330; 2009 No. 177

r. 292‑170.07......................

ad. 2009 No. 177

r. 292‑170.08......................

ad. 2009 No. 177

Div. 302 of Part 2 (first occurring) ...........................

ad. 2007 No. 328

 

rep. 2009 No. 388

r. 302‑195...........................

ad. 2007 No. 328

 

rep. 2009 No. 388

r. 302‑195A........................

ad. 2007 No. 328

 

rep. 2009 No. 388

Div 293

 

Div 293 of Pt 2A.................

ad No 279, 2013

Sdiv 293‑D

 

Sdiv 293‑D of Div 293........

ad No 6, 2014

r 293115.01.......................

ad No 6, 2014

Sdiv 293–DA

 

Sdiv293–DA of Div 293.....

ad No 52, 2014

r 293–115.05......................

ad No 52, 2014

r 293–115.10......................

ad No 52, 2014

r 293–115.15......................

ad No 52, 2014

r 293–115.20......................

ad No 52, 2014

Sdiv 293‑E

 

r 293‑145.01.......................

ad No 279, 2013

Division 295

 

Div. 295 of Part 2................

ad. 2007 No. 90

Subdivision 295‑D

 

r. 295‑265.01......................

ad. 2007 No. 90

Subdivision 295‑F

 

r. 295‑385.01......................

ad. 2007 No. 90

 

rs. No. 103, 2013

Subdivision 295‑G

 

Subdiv. 295‑G of Div. 295..

ad. 2011 No. 182

r. 295‑465.01......................

ad. 2011 No. 182

Part 3

 

Heading to Part 3.................

ad. 2007 No. 103

Division 301

 

Div. 301 of Part 2................

ad. 2007 No. 90

Subdivision 301‑D

 

r. 301‑170.01......................

ad. 2007 No. 90

Subdivision 301‑E

 

r. 301‑225.01......................

ad. 2007 No. 90

 

am. 2007 No. 103

Division 302

 

Div. 302 of Part 2................

ad. 2007 No. 90

Subdivision 302‑D

 

r. 302‑195...........................

ad. 2009 No. 388

r. 302‑195A........................

ad. 2009 No. 388

r. 302‑200.01......................

ad. 2007 No. 90

r. 302‑200.02......................

ad. 2007 No. 90

Division 303

 

Div. 303 of Part 3................

ad. 2008 No. 144

r. 303‑10.01........................

ad. 2008 No. 144

Division 306

 

Div. 306 of Part 3................

ad. 2007 No. 90

r. 306‑10.01........................

ad. 2007 No. 90

 

rs. 2008 No. 144

Division 307

 

Div. 307 of Part 3................

ad. 2007 No. 90

Subdivision 307‑C

 

Subdiv. 307‑C of Div. 307..

ad. 2007 No. 329

r. 307‑125.01......................

ad. 2007 No. 329

r. 307‑125.02......................

ad. No. 103, 2013

Subdivision 307‑D

 

r. 307‑200.01......................

ad. 2007 No. 90

 

rs No 279, 2013

r. 307‑200.02......................

ad. 2007 No. 90

 

am. 2007 No. 202

r. 307‑200.03......................

ad. 2007 No. 90

 

am. 2007 No. 202

r. 307‑200.04......................

ad. 2007 No. 90

 

rep. 2007 No. 202

r. 307‑200.05......................

ad. 2007 No. 90

r. 307‑205.01......................

ad. 2007 No. 90

r. 307‑205.02......................

ad. 2007 No. 90

 

am. 2007 No. 202; No. 103, 2013

r. 307‑205.02A...................

ad. 2007 No. 202

r. 307‑205.02B....................

ad. 2007 No. 202

Heading to Div. 328............
of Part 2

ad. 2003 No. 39
rep. 2007 No. 178

r. 328‑375.01......................

ad. 2003 No. 39

 

am. 2006 No. 216

 

rep. 2007 No. 178

Part 4

 

Part 4...................................

ad. 2005 No. 75

Subdivision 775‑B

 

r. 775‑145.01......................

ad. 2005 No. 75

Subdivision 830‑A

 

r. 830‑15.01........................

ad. 2007 No. 177

Part 5

 

Part 5...................................

ad. No. 103, 2013

Division 910

 

hdg to r 901‑1.01................

rs No 279, 2013

r. 910‑1.01..........................

ad. No. 103, 2013

r 910–1.02..........................

ad No 279, 2013

r 910–1.03..........................

ad No 279, 2013

r 9101.04...........................

ad No 6, 2014

r 9101.05...........................

ad No 52, 2014

Part 6

 

Heading to Part 6.................

ad. 2002 No. 172

Division 960