Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Regulations 1997

Statutory Rules 1997 No. 371 as amended

made under the

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

This compilation was prepared on 28 December 2002
taking into account amendments up to SR 2002 No. 218

Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra

Contents

Part 1 Preliminary

 1 Name of Regulations [see Note 1] 

 2 Definitions 

Part 1A Contributed amounts

 2E Interpretation 

 2F Meaning of contributed amounts — amounts attributable to interest — schemes without surplus (Act s 38)             

 2G Meaning of contributed amounts — amounts attributable to interest — schemes with surplus (Act s 38)             

 2H Meaning of contributed amounts — amounts credited, allocated or attributable to member (Act s 38)             

Part 1B Surchargeable contributions

 2L Surchargeable contributions — member of defined benefits superannuation scheme — 1999–2000 financial year (Act s 9 (6) (a))             

 2M Surchargeable contributions — member of defined benefits superannuation scheme — 2000–2001 financial year and later years (Act s 9 (6) (a))             

 2N Meaning of non-accruing member

Part 2 Statements by superannuation providers — additional information

 3 Member contributions statement — additional information (Act, subsection 12 (2))             

 4 Contributed amounts paid statement — additional information (Act s 12 (3))             

 5 Lump sum/pension payable statement — additional information (Act, subsection 12 (6))             

Part 3 Information generally

 6 Form of information to be given to the Commissioner 

 7 Where information is to be given 

 8 How an address for service will be determined 

 9 Last known place of business or residence 

 10 Change or omission in information given to the Commissioner             

 11 Giving a tax file number statement to the Commissioner 

 12 Commissioner may cause information to be marked or annotated             

 13 Need to give information in the required form and manner 

 14 Commissioner may request information 

Part 4 Miscellaneous

 15 Services of notices etc 

 16 Presumption as to signatures 

 17 Amounts of interest to be rounded down — surcharge debt accounts             

 18 Amounts remitted or refunded to be rounded up 

 19 Expenses for persons attending before the Commissioner (Act, subsection 32 (4))             

Schedule 1 Method for working out amount of surchargeable contributions             

Part 1 Preliminary 

Part 2 Valuation parameters 

Part 3 Employer-provided benefits that accrued to member — A(f) and A(u)             

Part 4 Employer-provided benefit options exercised by a member — B(f) and B(u)             

Part 5 Discretionary employer-provided benefits — C(f) and C(u) 

Part 6 Employer-provided death, disablement and other risk benefits — E             

Part 7 Administration expenses — F 

Part 8 Increases in employer-provided benefits not allowed for under Part 3, 4, 5 or 6 — G             

Schedule 2 Member contributions statement — additional matters 

Schedule 3 Contributed amounts paid statement — additional information             

Schedule 4 Tax file number statement 

Schedule 5 Scale of expenses 

Notes 

Part 1 Preliminary

1 Name of Regulations [see Note 1]

  These Regulations are the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Regulations 1997.

2 Definitions

  In these regulations, unless the contrary intention appears:

actuarial certificate, for a defined benefits superannuation scheme, means a certificate prepared for the scheme by an eligible actuary that states the actuary’s recommendations for the purpose of working out the amount of surchargeable contributions for members of the scheme for a financial year.

actuarial valuation, of a defined benefits superannuation scheme, means an actuarial valuation of the scheme prepared by an eligible actuary as part of the actuarial investigation of the scheme made under Part 9 of the Superannuation Industry (Supervision) Regulations 1994.

ATO Corporate External Gateway User ID means the user identification given to a supplier by the Commissioner to enable the supplier to use the ATO Corporate External Gateway.

Australian Business Number has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1999.

client identifier means a number or other unique identification assigned by a superannuation provider to a member’s accounts for linking all dealings by the provider with the member.

contributed amounts paid statement means a statement under subsection 12 (3) of the Act for a member.

document includes any electronic communication that represents or reproduces words, figures or symbols in visible form.

employer-sponsor has the meaning given by subsection 16 (1) of the Superannuation Industry (Supervision) Act 1993.

information includes information in written or electronic form.

lump sum/pension payable statement means a statement under subsection 12 (6) of the Act for a member.

member account number means the unique combination of characters (whether letters or numbers) used by a superannuation provider to identify a member’s account with the provider.

member contributions statement means a statement under subsection 12 (2) of the Act for a member.

PAYE group number, for an employer, means the number assigned to the employer as a registered group employer under section 221F of the Income Tax Assessment Act.

reporting day means:

 (a) in 1998 — 15 February, 15 April and 15 July; and

 (b) in 1999 and subsequent years — 15 January, 15 April and 15 July.

superannuation fund number means the number assigned to a superannuation provider by the Australian Prudential Regulation Authority.

supplier, in relation to information given or to be given to the Commissioner, means:

 (a) a superannuation provider; or

 (b) a person who is an agent of the superannuation provider for the purpose of giving information to the Commissioner.

supplier file reference means an identification number given by a supplier to the Commissioner.

supplier number, in relation to an entity that supplies information to the Commissioner, means the Australian Business Number, tax file number, or tax agent number, of the entity.

tax file number statement means a statement referred to in subregulation 11 (1).

the Act means the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997.

Part 1A Contributed amounts

2E Interpretation

 (1) In this Part:

superannuation scheme means a superannuation scheme other than a defined benefits superannuation scheme.

 (2) For this Part, a superannuation scheme has a surplus at a particular time if, at that time, the net market value of the assets of the scheme is greater than the total value of the account balances of the members of the scheme.

2F Meaning of contributed amounts — amounts attributable to interest — schemes without surplus (Act s 38)

 (1) This regulation applies in relation to a member of a superannuation scheme that does not have a surplus.

 (2) For subparagraphs (a) (i) and (ii) of the definition of contributed amounts in section 38 of the Act, an amount is to be regarded as reasonably attributable to interest in relation to the member for the 1999–2000 financial year, or a later financial year, if the amount:

 (a) is credited, allocated or attributed to an account for the member for the financial year; and

 (b) is not an amount paid for or by the member for the financial year.

2G Meaning of contributed amounts — amounts attributable to interest — schemes with surplus (Act s 38)

 (1) This regulation applies in relation to a member of a superannuation scheme that operates an investment reserve, or a miscellaneous reserve, after 30 June 1997 for the purpose of dividing a surplus that the scheme had at any time after that date (regardless of when the surplus came into existence).

 (2) For subparagraphs (a) (i) and (ii) of the definition of contributed amounts in section 38 of the Act, an amount is to be regarded as reasonably attributable to interest in relation to the member for the 1999–2000 financial year, or a later financial year, if, for the financial year, the requirements of subregulation (3) or (4) are satisfied in relation to the amount and the member.

 (3) The requirements of this subregulation are satisfied in relation to an amount and a member for a financial year if:

 (a) the amount is credited, allocated or attributed, for the financial year, to an account for the member from the investment reserve (except if the amount is credited, allocated or attributed to an account for the member for the purpose of paying employer contributions for the member); and

 (b) an amount is also credited, allocated or attributed, for the financial year, from the investment reserve to:

 (i) an account for each other member of the scheme; or

 (ii) if the member is a member of a class of members of the scheme and the amount in the investment reserve relates only to that class of members, an account for each other member of the class; and

 (c) either:

 (i) the same interest rate increment is applied to determine the amount that is credited, allocated or attributed, for the financial year, to:

 (A) the account for each member of the scheme; or

 (B) if the member is a member of a class of members of the scheme and the amount in the investment reserve relates only to that class of members, the account for each other member of the class; or

 (ii) each amount credited, allocated or attributed, for the financial year, to an account for a member of the scheme from the investment reserve is proportional to that member’s interest in the scheme at the time the amount is credited, allocated or attributed.

 (4) The requirements of this subregulation are satisfied in relation to an amount and a member for a financial year if:

 (a) the amount is credited, allocated or attributed, for the financial year, to an account for the member from the miscellaneous reserve (except if the amount is credited, allocated or attributed to an account for the member for the purpose of paying employer contributions for the member); and

 (b) an amount is also credited, allocated or attributed, for the financial year, from the miscellaneous reserve to:

 (i) an account for each other member of the scheme; or

 (ii) if the member is a member of a class of members of the scheme and the amount in the miscellaneous reserve relates only to that class of members, an account for each other member of the class; and

 (c) either:

 (i) the same interest rate increment, being an interest rate increment that does not exceed 5% a year, is applied to determine the amount that is credited, allocated or attributed, for the financial year, to:

 (A) the account for each member of the scheme; or

 (B) if the member is a member of a class of members of the scheme and the amount in the investment reserve relates only to that class of members, the account for each other member of the class; or

 (ii) each amount credited, allocated or attributed, for the financial year, to an account for a member of the scheme from the miscellaneous reserve does not exceed 5% of the member’s interest in the scheme for the financial year, and is proportional to one or more of the following:

 (A) the member’s interest in the scheme for the financial year;

 (B) the insurance premiums paid in respect of the member for the financial year;

 (C) the administration expenses in respect of the member for the financial year;

 (D) the amounts (if any) debited to the member’s account in respect of insurance premiums or administration expenses in respect of the member for the financial year.

2H Meaning of contributed amounts — amounts credited, allocated or attributable to member (Act s 38)

  For subparagraph (a) (ii) of the definition of contributed amounts in section 38 of the Act, an amount is credited, allocated or attributable to a member of a superannuation scheme for the 1999–2000 financial year, or a later financial year, if:

 (a) the amount is credited, allocated or attributed by the relevant superannuation provider to an account for the member for the financial year from an investment, contribution or miscellaneous reserve established for the purpose of dividing a surplus that the scheme had at any time after 30 June 1997; and

 (b) the amount exceeds an amount that, in the opinion of an eligible actuary, is reasonable having regard to:

 (i) the amounts paid for or by the member to the provider for the financial year; and

 (ii) the scheme’s investments earnings relating to the member’s interest in the scheme for the financial year; and

 (iii) any other matter the actuary considers relevant.

Part 1B Surchargeable contributions

2L Surchargeable contributions — member of defined benefits superannuation scheme — 1999–2000 financial year (Act s 9 (6) (a))

  For paragraph 9 (6) (a) of the Act, the method for working out the amount of the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme for the 1999–2000 financial year is:

Annual salary  Notional surchargeable contributions factor

  where:

annual salary means:

 (a) if paragraph (b) does not apply — the amount that is the member’s annual salary for the financial year; or

 (b) if another amount is taken to be the member’s annual salary for the purposes of the scheme as it applies to the member for the financial year — the other amount.

notional surchargeable contributions factor means the factor applying to the member for the financial year worked out by an eligible actuary using:

 (a) the method set out in Superannuation Contributions Ruling SCR 97/1; or

 (b) if the Commissioner approves in writing another method as being appropriate in relation to the member for the financial year, being a method that excludes contributions made by the member for which the member is not entitled to an income tax deduction under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997 — the approved method.

2M Surchargeable contributions — member of defined benefits superannuation scheme — 2000–2001 financial year and later years (Act s 9 (6) (a))

 (1) For paragraph 9 (6) (a) of the Act, this regulation sets out the method for working out the amount of the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme for the 2000–2001 financial year, or a later financial year.

 (2) This regulation applies to a non-accruing member of a defined benefits superannuation scheme for a financial year unless the member is a non-accruing member of the scheme for the whole of the financial year.

Note   By virtue of subsection 9 (4) of the Act, the amount of surchargeable contributions for a financial year of a member of a defined benefits superannuation scheme who is a non-accruing member for the whole of the financial year is zero.

 (3) The method for working out the amount of the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme for the 2000–2001 financial year, or a later financial year, is:

 (a) subject to paragraph (b), the standard method set out in Schedule 1; and

 (b) if the member satisfies the requirements of subregulation (4), the method set out in subregulation (5).

Note 1   If the application of the method set out in Schedule 1 results in a negative amount for a member for a financial year, the member has no surchargeable contributions for the financial year.

Note 2   An amount worked out using the method set out in Schedule 1 is relevant only for the financial year for which it is worked out. So, for example, a negative amount worked out for a member under Schedule 1 for a financial year cannot be used to offset a positive amount worked out under the Schedule for the member for a later financial year.

 (4) A member satisfies the requirements of this subregulation if:

 (a) the member is entitled to:

 (i) accumulation benefits only; or

 (ii) accumulation benefits and defined death or disablement benefits; and

 (b) the member has no present or future entitlement to a defined benefit under any other contingency.

 (5) For the purposes of paragraph (3) (b), the method is:

CA + A + I

  where, for the financial year for which the amount is being worked out:

CA   is an amount worked out under subsection 9 (2) of the Act for the member, less any part of that amount that relates to administration expenses or insurance expenses, including self-insurance expenses, in respect of the member.

A   is an amount that represents the value of administration expenses in respect of the member.

I   is an amount that represents the sum of:

 (a) the cost of any insurance provided in respect of the member by an entity other than the scheme; and

 (b) the value of any self-insurance provided in respect of the member.

 (6) If a member changes membership status in a financial year, the amount worked out under this regulation for the member for the financial year is the sum of the amounts worked out for the member for each period of membership status in the financial year.

 (7) In this regulation:

non-accruing member, of a defined benefits superannuation scheme, has the meaning given by regulation 2N.

2N Meaning of non-accruing member

 (1) A member of a defined benefits superannuation scheme is a non-accruing member of the scheme for a period if the member meets the requirements of subregulation (2) or (3).

 (2) A member of a defined benefits superannuation scheme meets the requirements of this subregulation for a period if, for the whole of the period:

 (a) the member’s membership in the scheme consists only in the member receiving pension payments under the scheme; and

 (b) any of the following applies:

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

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

 (iii) the first pension payment was made on or after the date of effect of the first actuarial certificate prepared for the scheme, and the pension payments increase at rates that are consistent with the assumptions used in the preparation of the actuarial certificate for the last financial year in which employer‑provided benefits accrued to the member under the scheme;

 (iv) the first pension payment was made before the date of effect of the first actuarial certificate prepared for the scheme, and the pension payments increase at rates that are consistent with the rates prescribed under the rules of the scheme that applied when employer-provided benefits accrued to the member under the scheme.

 (3) A member of a defined benefits superannuation scheme meets the requirements of this subregulation for a period if, for the whole of the period:

 (a) the member has a benefit entitlement in the scheme but no employer-provided benefits have accrued to the member; and

 (b) the rules of the scheme provide that the benefit:

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

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

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

 (iv) is to increase at the rate (if any) at which the member’s salary increases; or

 (v) is to increase at a rate reflecting the earning rate of the assets of the scheme or the part of the scheme to which the member belongs; or

 (vi) in the case of a deferred benefit, is to increase at a rate that reflects any reduction in the expected period in which pension payments are to be made and any deferral of the date when payments will start; or

 (vii) is to increase at a regular rate, or a rate worked out using a formula, that an eligible actuary considers will not result in an increase that is more than the greatest of the increases mentioned in subparagraphs (i) to (vi); and

 (c) an eligible actuary considers that the benefit does not result in any increase in the value of employer-provided benefits accruing to the member.

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

Part 2 Statements by superannuation providers — additional information

3 Member contributions statement — additional information (Act, subsection 12 (2))

 (1) A member contributions statement must include information (where applicable) on the matters set out in Schedule 2.

 (2) Those matters comprise:

 (a) matters required by paragraphs 12 (2) (a) and (b) of the Act to be set out in the statement (which are marked with an asterisk* in the Schedule); and

 (b) matters that, under paragraph 12 (2) (c) of the Act, are required by these regulations to be so set out (which are unmarked).

4 Contributed amounts paid statement — additional information (Act s 12 (3))

 (1) A contributed amounts paid statement must include information (if applicable) on the matters set out in Schedule 3.

 (2) Those matters include:

 (a) matters required by paragraphs 12 (3) (c), (d) and (e) of the Act to be set out in the statement (which are marked with an asterisk* in the Schedule); and

 (b) matters that, under paragraph 12 (3) (f) of the Act, are required by these regulations to be so set out (which are unmarked).

5 Lump sum/pension payable statement — additional information (Act, subsection 12 (6))

  A lump sum/pension payable statement must include, in addition to matters that are required by paragraphs 12 (6) (c), (d) and (e) of the Act, information (where applicable) on the matters set out in Schedule 3.

Part 3 Information generally

6 Form of information to be given to the Commissioner

 (1) This regulation applies to information to be given by a person to the Commissioner under the Act or these regulations, other than information to be contained in a statement under section 12 of the Act.

 (2) The information must be given:

 (a) if a form for the information is specified or approved by the Commissioner — in that form; and

 (b) if a medium for the information is specified or approved by the Commissioner — in that medium; and

 (c) if a format for the information is specified or approved by the Commissioner — in that format.

 (3) The Commissioner may specify or approve different forms, formats and media:

 (a) for information to be given by different types of superannuation providers or other persons; or

 (b) for use in different circumstances.

 (4) If a specified or approved form so provides, the person must:

 (a) sign the form or include identification of the person in the form; and

 (b) verify the information by a declaration as set out in the form.

 (5) Any information that accompanies other information that is given to the Commissioner in a specified or approved form must include:

 (a) the signature or other identification of the person giving the information in the form; and

 (b) an endorsement that identifies the information as accompanying the information given in the form.

7 Where information is to be given

 (1) If the Commissioner specifies or directs that a person or class of persons must give information (whether or not in a specified or approved form) required by the Act or these regulations at a particular address, the person or class of persons must give the information at that address.

 (2) If the Commissioner does not specify or direct that information be given at a particular address, the information may be given at any office of the Commissioner.

8 How an address for service will be determined

 (1) The address for service last given to the Commissioner by any person is for all purposes under the Act and these regulations that person’s address for service.

 (2) However, if:

 (a) no address for service has been given to the Commissioner; or

 (b) the Commissioner’s records show that the person has later changed the address and has not given a new address to the Commissioner;

the address of the person as set out in any record in the custody of the Commissioner is the person’s address for service.

9 Last known place of business or residence

  The address for service of a person as determined under regulation 8 is to be, for all purposes under the Act and these regulations, the person’s last known place of business or residence in Australia.

10 Change or omission in information given to the Commissioner

 (1) If at any time a superannuation provider becomes aware of a change or omission in any information given to the Commissioner, the provider must:

 (a) inform the Commissioner of the change; or

 (b) give the omitted information to the Commissioner;

as the case requires, unless the provider is reasonably satisfied that the change or omission will not affect an assessment.

 (2) Information required by subregulation (1) must be given:

 (a) if the provider becomes aware of the change or omission not less than 30 days before the next reporting day — before that reporting day; or

 (b) in any other case — before the reporting day after the next reporting day.

11 Giving a tax file number statement to the Commissioner

 (1) If:

 (a) a superannuation provider has given information to the Commissioner in connection with the operation of the Act or these regulations in relation to a member; and

 (b) the member did not quote his or her tax file number to the provider in connection with the operation or possible future operation of the Act before the information was given; and

 (c) the member later quotes the tax file number to the provider in connection with the operation or possible future operation of the Act;

the provider must give a statement to the Commissioner that includes information on the matters set out in Schedule 4.

 (2) A tax file number statement must be given to the Commissioner:

 (a) if it is quoted to the provider not less than 30 days before the next reporting day — before that reporting day; or

 (b) in any other case — before the reporting day after the next reporting day.

Note   Superannuation providers must comply with any guidelines relating to tax file number information issued by the Privacy Commissioner under section 17 of the Privacy Act 1988.

12 Commissioner may cause information to be marked or annotated

 (1) The Commissioner may cause or permit an officer of the Commissioner to make any marks, figures or annotations that the Commissioner thinks fit in or on any information given to the Commissioner.

 (2) The marks, figures and annotations must be made in a way that makes them distinguishable from the information given to the Commissioner.

13 Need to give information in the required form and manner

 (1) A person is not taken to have given information to the Commissioner for the Act or these regulations until the Commissioner accepts the information.

 (2) The Commissioner must accept the information if it:

 (a) gives a complete and accurate statement of all the matters required by the Act and these regulations, to the extent that information about those matters is known to the person; and

 (b) is given in the form and manner required by the Act and these regulations; and

 (c) is signed or otherwise identified by the person giving the information as required by the Act or these regulations.

 (3) The acceptance of any information by the Commissioner does not affect the requirements of the Act or these regulations in relation to any other information given or to be given to the Commissioner.

14 Commissioner may request information

  The Commissioner may at any time request any person or class of persons to give information in connection with the operation or possible future operation of the Act or these regulations.

Part 4 Miscellaneous

15 Services of notices etc

 (1) Any notice or other document given by or on behalf of the Commissioner under the Act or these regulations may be served on any person by:

 (a) delivering it personally to the person; or

 (b) leaving it at the person’s address for service; or

 (c) sending it by electronic transmission:

 (i) to a facility maintained by the person for the receipt of electronically transmitted documents; or

 (ii) in such a manner that the document should, in the ordinary course of events, be received by the person; or

 (d) posting it by prepaid letter post, addressed to the person at his or her address for service.

 (2) In the absence of proof to the contrary, a notice or other document served on a person in accordance with subregulation (1) is taken to have been served:

 (a) in the case of service in accordance with paragraph (1) (a), (b), or (c) — when the notice or document is delivered, left or transmitted, as the case requires; and

 (b) in the case of service in accordance with paragraph (1) (d) — when the notice or document would, in the ordinary course of post, have arrived at the place to which it was addressed.

16 Presumption as to signatures

 (1) Judicial notice must be taken of the names and signatures of the persons who are, or were at any time, the Commissioner, a Second Commissioner, a Deputy Commissioner or a delegate of the Commissioner.

 (2) A notice or other document that bears the written, printed or stamped name (including a facsimile of the signature) of a person who is, or was at any time, the Commissioner, a Second Commissioner, a Deputy Commissioner or a delegate of the Commissioner in place of that person’s signature, is to be taken as signed by that person unless it is proved that the document was issued without authority.

17 Amounts of interest to be rounded down — surcharge debt accounts

  If interest calculated under subsection 15 (4) of the Act for a member is an amount of whole dollars and an amount of cents, the amount of cents is to be disregarded.

18 Amounts remitted or refunded to be rounded up

  If an amount of surcharge, interest or late payment penalty to be refunded or remitted under the Act is not a multiple of 5 cents, the amount is to be increased to the nearest multiple of 5 cents.

19 Expenses for persons attending before the Commissioner (Act, subsection 32 (4))

  The scale of expenses set out in Schedule 5 is prescribed for expenses to be allowed to persons (other than persons giving information or answering questions in respect of their own income or assessment or the income or assessment of persons whose representatives they are) required to attend under section 32 of the Act.

Schedule 1 Method for working out amount of surchargeable contributions

(paragraph 2M (3) (a))

Part 1 Preliminary

1 Meaning of employer-provided benefit

  For this Schedule, a benefit of any kind that is described as employer-provided does not include any part of the benefit attributable to member contributions or any earnings in relation to those contributions.

2 Standard method for working out amount of surchargeable contributions

  The standard method for working out the amount of the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme for the 2000–2001 financial year, or a later financial year, is:

  where, for that financial year:

A(f)   is an amount worked out by an eligible actuary under Parts 2 and 3 that represents the present actuarial value of funded employer-provided benefits not included in the value of D(f), E or F that accrued to, or may be provided in respect of, the member.

A(u)   is an amount worked out by an eligible actuary under Parts 2 and 3 that represents the present actuarial value of unfunded employer-provided benefits not included in the value of D(u), E or F that accrued to the member.

B(f)   is an amount worked out by an eligible actuary under Parts 2 and 4 that represents the actuarial value of any funded employer-provided benefit option not included in the value of A(f) that the member elects to exercise as a personal right.

B(u)   is an amount worked out by an eligible actuary under Parts 2 and 4 that represents the actuarial value of any unfunded employer-provided benefit option not included in the value of A(u) that the member elects to exercise as a personal right.

C(f)   is an amount worked out by an eligible actuary under Parts 2 and 5 that represents the actuarial value of any discretionary funded employer-provided benefits that may be provided in respect of the member by the scheme trustee or employer-sponsor.

C(u)   is an amount worked out by an eligible actuary under Parts 2 and 5 that represents the actuarial value of any discretionary unfunded employer-provided benefits that may be provided in respect of the member by the scheme trustee or employer-sponsor.

D(f)   is an amount worked out by an eligible actuary that represents the actuarial value of any non‑discretionary funded employer-provided accumulation benefits that accrued to the member.

D(u)   is an amount worked out by an eligible actuary that represents the actuarial value of any non‑discretionary unfunded employer-provided accumulation benefits that accrued to the member.

E   is an amount worked out by an eligible actuary under Parts 2 and 6 that represents the actuarial value of employer-provided death, disablement and other risk benefits not included in the value of A(f) or A(u) that may be provided in respect of the member.

F   is an amount worked out by an eligible actuary under Part 7 that represents the value of the administration expenses (excluding investment expenses) in respect of the member.

G   is an amount worked out by an eligible actuary under Parts 2 and 8 that represents the actuarial value of any increase in the actuarial value of A(f), A(u), B(f), B(u), C(f), C(u) or E that accrued to, or may be provided in respect of, the member because of the occurrence of an event in relation to the member.

H   is an amount worked out under subsection 9 (3) of the Act that represents the value of the post 20 August 1996 component of any eligible termination payment, within the meaning of paragraph (a) of the definition of that term in subsection 27A (1) of the Income Tax Assessment Act, made to the member that is rolled over to the scheme on or after 1 July 1997 and before 20 August 2001 and is not included in the value of A(f) or D(f).

H(1)   is an amount that represents the value of the post 20 August 1996 component of a specified roll‑over amount that accrued to the member and that is rolled over to the scheme on or after 20 August 2001 and is not included in the value of A(f) or D(f).

Part 2 Valuation parameters

3 Application of economic, decrement and other parameters

  For the purpose of working out the actuarial value of A(f), A(u), B(f), B(u), C(f), C(u), E and G mentioned in Part 1 for a member of a defined benefits superannuation scheme for a financial year, an eligible actuary is to apply the economic, decrement and other parameters set out in this Part.

4 Discount rate

 (1) The discount rate to be applied is 8% a year.

 (2) The discount rate is not to be adjusted for investment expenses or investment-related taxation or for any other reason.

5 Rate of future salary or wages growth

 (1) The rate of salary or wages growth to be applied is 4.5% a year.

 (2) The rate is to be used:

 (a) to project the value of future salary or wages; and

 (b) to value employer-provided benefits that increase in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Statistician).

6 Rate of increase in price indices

  If a benefit is linked at any time to the increase in a published price index, the rate of increase in the price index to be applied for the purpose of projections is 2.5% a year.

Example

Increases in the value of a pension may be linked to increases in the Consumer Price Index.

7 Rates of decrement and other parameters

 (1) The rates of decrement and other parameters to be applied are the rates of decrement and other parameters adopted at the most recent actuarial valuation of the scheme that has a valuation date not later than 1 July of the first financial year to which the actuarial certificate prepared in accordance with the actuarial valuation applies.

 (2) If an eligible actuary considers that the rates of decrement and other parameters adopted at the actuarial valuation mentioned in subclause (1) are no longer appropriate, the actuary is to set new rates of decrement and other parameters in accordance with subclause (3).

Example

The rates of decrement and other parameters adopted for the purpose of preparing an actuarial valuation of a scheme may no longer be appropriate for the scheme because the nature of the work performed by members of the scheme may have changed.

 (3) If an eligible actuary sets new rates of decrement and other parameters under subclause (2):

 (a) the new rates of decrement and other parameters must be consistent with any other parameters set under this Schedule; and

 (b) the actuary must be satisfied that the new rates of decrement and other parameters are appropriate in relation to the particular scheme.

 (4) Unless this Schedule otherwise provides, if the scheme is a new scheme for which no actuarial valuation has been prepared, an eligible actuary is to set rates of decrement and other parameters for the scheme that are consistent with a comparable scheme and the other parameters set under this Schedule.

8 Increase in superannuation guarantee minimum employer-provided benefits

  If appropriate, minimum employer-provided benefits that accrued to a member under the Superannuation Guarantee (Administration) Act 1992 are to be assumed to increase in accordance with increases provided by that Act.

Part 3 Employer-provided benefits that accrued to member — A(f) and A(u)

9 Application of Part 3

  This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year:

 (a) the amount (A(f)) that represents the present actuarial value of funded employer-provided benefits not included in the value of D(f), E or F that accrued to, or may be provided in respect of, the member for the financial year; and

 (b) the amount (A(u)) that represents the present actuarial value of unfunded employer-provided benefits not included in the value of D(u), E or F that accrued to the member for the financial year.

10 Present actuarial value of employer-provided retirement, death, disablement and other risk benefits

 (1) The present actuarial value of employer-provided retirement, death, disablement or any other risk benefits that accrued to the member for the financial year is to be worked out using:

 (a) an actual accrual method; or

 (b) if an eligible actuary considers that an actual accrual method is not appropriate in relation to the member for the year, a proportionate method.

 (2) The method that is used must be used consistently and must be applied so that the full benefit would accrue to the member over the whole period of the member’s membership.

11 Present actuarial value of employer-provided resignation benefits

 (1) The present actuarial value of employer-provided resignation benefits that accrued to the member for the financial year is to be worked out in accordance with this clause.

 (2) Employer-provided resignation benefits based on the accumulation of member or employer contributions plus interest are to relate only to contributions, including projected contributions, payable up to 30 June in the financial year.

 (3) Employer-provided resignation benefits based on a defined benefit (for example, a benefit that is a percentage of a member’s final average salary for each year of membership or vesting into the accrued retirement benefit) are to relate only to the projected period of membership up to 30 June in the financial year.

 (4) If, in working out the present actuarial value of employer‑provided resignation benefits that accrued to a member for a financial year, it is necessary to take account of future changes in vesting, the vesting factor is to be determined based on the period of membership, or completed service, up to the projected date of resignation.

Part 4 Employer-provided benefit options exercised by a member — B(f) and B(u)

12 Application of Part 4

  This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year:

 (a) the amount (B(f)) that represents the actuarial value of any funded employer-provided benefit option not included in the value of A(f) that the member elects to exercise as a personal right for the financial year; and

 (b) the amount (B(u)) that represents the actuarial value of any unfunded employer-provided benefit option not included in the value of A(u) that the member elects to exercise as a personal right for the financial year.

13 Employer-provided benefit options available at 20 August 1996

 (1) This clause applies if the option exercised by the member for the financial year was available to the member at 20 August 1996 under the rules of the scheme in force at that time.

 (2) If, in the valuation of employer-provided benefits that accrued to the member for each financial year since 20 August 1996, an eligible actuary allowed for the exercise of the option in accordance with the actuarial report made in relation to the relevant actuarial valuation of the scheme (including an assumption of zero that was used in the valuation and was noted in the actuarial report or the actuary’s working papers), the amount that represents the actuarial value of the option under this Part for the member for the financial year is zero.

 (3) If, in the valuation of employer-provided benefits that accrued to the member for any financial year since 20 August 1996, an eligible actuary did not allow for the exercise of the option in accordance with the actuarial report made in relation to the relevant actuarial valuation of the scheme, the amount that represents the actuarial value of the option under this Part for the member for the financial year is the lesser of:

 (a) the difference between the value of all employer‑provided benefits taken by the member (including the option) and the actuarial value of all employer-provided benefits that the actuary assumed would have accrued to the member at the date when the option was exercised, worked out using the valuation parameters set out in Part 2; and

 (b) the post 20 August 1996 component of the difference between the value of all employer-provided benefits taken on exercising the option and the actuarial value of the employer-provided benefits that would have been taken by the member if the option had not been exercised.

14 Employer-provided benefit options introduced after 20 August 1996

 (1) This clause applies if the option exercised by the member for the financial year was introduced after 20 August 1996.

 (2) If an eligible actuary:

 (a) treated the introduction of the option as an event for the purpose of working out an amount under Part 8 for the member for a financial year (the first financial year); and

 (b) allowed for the exercise of the option in the amount worked out under this Schedule for the member for each financial year after the first financial year;

the amount that represents the actuarial value of the option under this Part for the member for the financial year is zero.

 (3) If an eligible actuary did not treat the introduction of the option as an event for the purpose of working out an amount under Part 8 for the member for the financial year, the amount that represents the actuarial value of the option under this Part for the member for the financial year is the amount that represents the difference between the value of the benefit taken and the greater of:

 (a) the actuarial value of the benefit that the actuary assumed would be taken by the member in working out an amount under this Schedule for the member for the financial year; and

 (b) the actuarial value of the benefits (excluding the value of the option) that had accrued to the member when the option was exercised worked out using the valuation parameters set out in Part 2.

Part 5 Discretionary employer-provided benefits — C(f) and C(u)

15 Application of Part 5

  This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year:

 (a) the amount (C(f)) that represents the actuarial value of any discretionary funded employer-provided benefits that may be provided in respect of the member for the financial year by the scheme trustee or employer-sponsor; and

 (b) the amount (C(u)) that represents the actuarial value of any discretionary unfunded employer-provided benefits that may be provided in respect of the member for the financial year by the scheme trustee or employer-sponsor.

16 Exercise of discretion

 (1) Subclause (2) applies if an eligible actuary considers that a benefit will be provided for the financial year at the discretion of the scheme trustee, or employer‑sponsor, in respect of the member and, on the same basis, in respect of:

 (a) each other member of the scheme; or

 (b) if the member is a member of a class of members of the scheme, each other member of that class.

 (2) The amount that represents the actuarial value of the benefit under this Part for the member for the financial year is an amount that represents the increase in the actuarial value of A(f) and A(u) that would accrue to the member for the financial year if the discretion were to be exercised in the way described in subclause (1).

 (3) If subclause (2) does not apply, and the scheme trustee or employer-sponsor exercises the discretion to provide a benefit (the provided benefit) in respect of the member for the financial year, the amount that represents the actuarial value of the benefit under this Part for the member for the financial year is the amount that represents the difference between the value of the provided benefit and the greater of:

 (a) the actuarial value of the benefit that the actuary assumed would be provided by the scheme trustee or employer-sponsor; and

 (b) the actuarial value of the benefit (excluding the value of any additional benefits arising from the exercise of the discretion) that had accrued to the member when the discretion was exercised, worked out using the valuation parameters set out in Part 2.

Part 6 Employer-provided death, disablement and other risk benefits — E

17 Application of Part 6

  This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year, the amount (E) that represents the actuarial value of employer-provided death, disablement and other risk benefits not included in the value of A(f) or A(u) that may be provided in respect of the member for the financial year.

18 Cost of death, disablement and other risk benefits

 (1) The cost of death, disablement and other risk benefits is to be worked out based on the cost of insurance for 1 year for the non-accrued (for example, future service) component of those benefits.

 (2) Subject to subclause 7 (2), if the rates of decrement for death and disablement were assumed to be more than zero for the purposes of the most recent actuarial valuation of the scheme, the cost of cover for death and disablement is to be based on that assumption.

 (3) If the rates of decrement for death and disablement were assumed to be zero for the purposes of the most recent actuarial valuation of the scheme, or no actuarial valuation of the scheme has been prepared, the rates of decrement for death and disablement to be applied are:

 (a) the rates an eligible actuary expects to use at the next actuarial valuation of the scheme; or

 (b) the relevant rates set out in the following table.

Part 7 Administration expenses — F

19 Application of Part 7

  This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year, the amount (F) that represents the value of the administration expenses (excluding investment expenses) in respect of the member for the financial year.

20 Rate of administration expenses

  The rate of administration expenses (excluding investment expenses) to be applied is:

 (a) the rate assumed for the purposes of the most recent actuarial valuation of the scheme; or

 (b) if an eligible actuary considers that the rate of administration expenses adopted at the most recent actuarial valuation of the scheme is no longer appropriate, or no previous actuarial valuation of the scheme has been prepared, a rate that the actuary considers is appropriate for the particular scheme.

Part 8 Increases in employer-provided benefits not allowed for under Part 3, 4, 5 or 6 — G

21 Application of Part 8

 (1) This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year, the amount (G) that represents the actuarial value of any increase in the actuarial value of A(f), A(u), B(f), B(u), C(f), C(u) or E that accrued to, or may be provided in respect of, the member for the financial year because of the occurrence of an event in relation to the member for the year.

 (2) For this Part, an event, in relation to a member of a scheme for a financial year, does not include any difference between the valuation parameters adopted under Part 2 for the member for the financial year and the actual experience of the scheme for the financial year.

22 General rule

 (1) If the event is of a kind mentioned in clause 23, 24, 25 or 26, the actuarial value of any increase in the employer‑provided benefits that accrued to the member for the financial year because of the occurrence of the event is an amount worked out in accordance with the clause that relates to the event.

 (2) If:

 (a) the event is not of a kind mentioned in clause 23, 24, 25 or 26; and

 (b) because of the occurrence of the event, the actuarial value of all employer-provided benefits that had accrued to the member immediately after the event is greater than the actuarial value of all employer-provided benefits that had accrued to the member immediately before the event;

  the actuarial value of the increase in the employer-provided benefits that accrued to the member for the financial year is an amount worked out, in accordance with this Schedule, that represents the difference between:

 (c) the actuarial value of all employer-provided benefits that had accrued to the member immediately after the event; and

 (d) the actuarial value of all employer-provided benefits that had accrued to the member before the event.

 (3) If the member’s scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.

23 Change in scheme rules or membership class

 (1) This clause applies if:

 (a) either of the following events occurs in relation to the member for the financial year:

 (i) the rules of the member’s scheme are changed;

 (ii) the member changes to a different membership class in the scheme; and

 (b) the change results in an increase in the actuarial value of the employer-provided benefits that accrued to the member for the financial year.

 (2) The actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount that represents the difference between the actuarial value of all employer-provided benefits that had accrued to the member immediately after the change and the greater of:

 (a) the employer-provided component of the actuarial value of the benefits that had accrued to the member immediately before the change worked out using the valuation parameters set out in Part 2; and

 (b) the employer-provided component of the standard vested benefit at the date of the change.

 (3) If the scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.

 (4) For the purposes of paragraph (2) (b), if there is an option in vested benefits, the reference to ‘standard vested benefit’ is a reference to the maximum value of the vested benefit.

24 Transfer by member to a different scheme

 (1) This clause applies if the member transfers from the member’s scheme (the exited scheme) to another defined benefits superannuation scheme (the receiving scheme) in the financial year.

 (2) If the actuarial value of the employer-provided benefits that accrued to the member in both the exited scheme and the receiving scheme is the same, the amount worked out under this clause is zero.

 (3) If the actuarial value of the employer-provided benefits accruing to the member is greater in the receiving scheme than in the exited scheme, the actuarial value of the increase in the employer-provided benefits that accrued to the member for the financial year is an amount that represents the difference between the actuarial value of all employer-provided benefits that had accrued to the member immediately after the transfer and the greater of:

 (a) the employer-provided component of the actuarial value of the benefits that had accrued to the member immediately before the transfer worked out using the valuation parameters set out in Part 2; and

 (b) the employer-provided component of the standard vested benefit at the date of the transfer.

 (4) If the receiving scheme is a funded scheme, the amount worked out under subclause (3) is to be divided by 0.85.

 (5) For the purposes of paragraph (3) (b), if there is an option in vested benefits, the reference to ‘standard vested benefit’ is a reference to the maximum value of the vested benefit.

25 Conversion from defined benefit membership to accumulation membership

 (1) This clause applies if:

 (a) the member’s benefits are converted to accumulation benefits in the financial year; and

 (b) the conversion results in the member transferring to the accumulation membership an amount that exceeds the greater of:

 (i) the actuarial value of all employer-provided benefits that had accrued to the member before the conversion; and

 (ii) the employer-provided component of the member’s standard vested benefit for the financial year at the date of the conversion.

 (2) The actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount that represents the difference between the opening balance of the part of the member account provided by the employer and the greater of:

 (a) the employer-provided component of the actuarial value of the benefits that had accrued to the member before the conversion worked out using the valuation parameters set out in Part 2; and

 (b) the employer-provided component of the standard vested benefit at the date of the conversion.

 (3) If the scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.

 (4) For the purposes of subparagraph (1) (b) (ii) and paragraph (2) (b), if there is an option in vested benefits, the reference to ‘standard vested benefit’ is a reference to the maximum value of the vested benefit.

26 Increase in pension in payment

 (1) This clause applies if the amount of a pension being paid to the member in the financial year increases by an amount that is greater than the amount provided under the scheme rules in force at the later of:

 (a) the time when the pension became payable; and

 (b) 20 August 1996.

 (2) The actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount, worked out in accordance with this Schedule, that represents the difference between:

 (a) the actuarial value of the pension after the increase; and

 (b) the actuarial value of the pension before the increase.

 (3) If the scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.

Schedule 2 Member contributions statement — additional matters

(regulation 3)

Schedule 3 Contributed amounts paid statement — additional information

(regulations 4 and 5)

Schedule 4 Tax file number statement

(subregulation 11 (1))

Schedule 5 Scale of expenses

(regulation 19)

 1 Person attending because of his or her professional, scientific or other special skill or knowledge — for each day on which the person attends, the amount provided for in the High Court Rules as in force from time to time for the expenses of witnesses possessing that skill or knowledge.

 2 Person attending, other than a person referred to in item 1:

 (a) if the person is remunerated by wages, salary or fees — the amount provided for in the High Court Rules as in force from time to time for the expenses of witnesses so remunerated; or

 (b) in any other case — the amount provided for in the High Court Rules as in force from time to time for the expenses of witnesses generally.

 3 Person attending as an expert — in addition to any other amount payable to that person under item 1 or 2, a reasonable amount for qualifying to answer questions as an expert.

 4 Any person attending to give evidence — a reasonable amount:

 (a) for the person’s travel to and from the place at which the person attends; and

 (b) if that person must be absent overnight from that person’s usual place of residence — for meals and accommodation.

Notes to the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Regulations 1997

Note 1

The Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Regulations 1997 (in force under the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997) as shown in this compilation comprise Statutory Rules 1997 No. 371 amended as indicated in the Tables below.

Table of Statutory Rules

Table of Amendments