Small Superannuation Accounts Act 1995

PART 6 - CREDITING OF INTEREST  

Division 4 - Allocation day and allocation rate  

SECTION 47   CALCULATION OF THE ALLOCATION RATE  

47(1)   Application of steps.  

To work out the allocation rate for a quarter, apply the following steps.

47(2)   Adjusted total balances.  

Calculate the adjusted total balances for the quarter by:

(a) working out, for each day in the quarter, the total balances of all the accounts; and

(b) adding up those totals; and

(c) dividing the result by the number of days in the quarter.

For the purposes of this calculation, if an account balance actually exceeds $1,200, the account balance is taken to be $1,200.

47(3)   Provisional rate.  

Calculate the provisional rate for the quarter as a percentage (to 4 decimal places) using the formula:

Net interest amount         Adjusted total balances

×

100

where:

Net interest amount means the net interest amount for the quarter;

Adjusted total balances means the adjusted total balances for the quarter.

Note:

Net interest amount is defined by section 39 .

47(4)   Total balances.  

Calculate the total balances for the quarter by:

(a) working out, for each day in the quarter, the total balances of all the accounts; and

(b) adding up those totals; and

(c) dividing the result by the number of days in the quarter.

47(5)   Capped rate.  

Calculate the capped rate as a percentage (to 4 decimal places) using the formula:

Gross interest amount Total balances

×

100

where:

Gross interest amount means the gross interest amount for the quarter;

Total balances means the total balances for the quarter.

Note:

Gross interest amount is defined by section 38 .

47(6)   Allocation rate - comparison between provisional rate and capped rate.  

Compare the provisional rate with the capped rate:

(a) if the provisional rate is less than or equal to the capped rate - the allocation rate equals the provisional rate; or

(b) if the provisional rate exceeds the capped rate - the allocation rate equals the capped rate.