Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-D - Superannuation interests  

SECTION 307-205.02   VALUE OF SUPERANNUATION INTEREST  

307-205.02(1)    
For the purposes of paragraph 307-205(1)(a) of the Act, this section 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 subsection (2) applies.

Note:

The proportioning rule in section 307-125 of the Act requires the tax free component and taxable component of a superannuation benefit to be paid out in the same proportion as they make up of the underlying interest. A value of the superannuation interest is required to ensure that the proportioning rule operates appropriately.

307-205.02(2)    
This subsection applies to a superannuation income stream or a superannuation annuity, other than:

(a)    a superannuation income stream that is a pension mentioned in subparagraph 295-385.01(a)(i) , (ii) or (iii) ; or

(b)    a superannuation income stream or a superannuation annuity for which the rules providing for the income stream or annuity are based on:

(i) an identifiable lump sum amount; or

(ii) the amount available in the member ' s account; or

(c)    a superannuation income stream that is supported by a superannuation interest that can be valued under paragraph 307-205.02B(a) ; or

(d)    a superannuation income stream that is supported by a superannuation interest that can be valued under section 307-205.02C , 307-205.02D or 307-205.02E .

307-205.02(3)    
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 for the superannuation income stream 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 for the superannuation lump sum set out in clause 2 of Schedule 1B .