SUPERANNUATION CONTRIBUTIONS TAX (MEMBERS OF CONSTITUTIONALLY PROTECTED SUPERANNUATION FUNDS) ASSESSMENT AND COLLECTION REGULATIONS 1997 (REPEALED)

SCHEDULE 1  

Method for working out amount of surchargeable contributions

(paragraph 2M(3)(a) )

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

25   Conversion from defined benefit membership to accumulation membership  

25(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.

25(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.

25(3)    
If the scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.

25(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.