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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 307-205.01   VALUE OF SUPERANNUATION INTEREST FOR CALCULATING PRE-JULY 83 AMOUNT FOR MEMBERS IN THE CONTRIBUTIONS AND INVESTMENT PHASE  

307-205.01(1)    
For the purposes of paragraph 307-205(1)(a) of the Act, this section specifies methods for determining the value of a superannuation interest of a member of a superannuation fund at a particular time for the purposes of calculating the pre-July 83 amount of the crystallised segment of a tax free component under section 307-225 of the Act.

Note:

Calculating the pre-July 83 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

307-205.01(2)    
For a superannuation interest that is a defined benefit interest, the method is as follows. Method statement


Step 1.

Calculate, in accordance with section 307-205.01A , 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 the 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.


    Step 2.

    If a superannuation lump sum benefit, including a roll-over superannuation benefit, would have been payable had the member resigned, or withdrawn the benefit, immediately before 1 July 2007, calculate the value of that benefit.


    Step 3.

    The value of the superannuation interest is the greater of the values worked out using steps 1 and 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

    307-205.01(3)    
    For a superannuation interest that is not a defined benefit interest, the method is as follows. Method statement


    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. The value of the superannuation interest is the total amount, unless step 2 applies.


    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 superannuation interest is the amount actually or notionally allocated to the member.



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