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 307-205.02C   VALUE OF SUPERANNUATION INTEREST - DEFERRED SUPERANNUATION INCOME STREAMS  

307-205.02C(1)    

For the purposes of paragraph 307-205(a) of the Act, this section specifies a method for determining the value at a particular time (the valuing time ) of an individual ' s superannuation interest that supports a deferred superannuation income stream that:

(a)    is covered by paragraph 307-70.02(1)(c) ; and

(b)    is neither a pooled investment pension nor a pooled investment annuity.

307-205.02C(2)    

If the valuing time is at or before the time (the payment start time ) at which the contract or rules for the provision of the deferred superannuation income stream provide for payments of the income stream to start, the value of the interest at the valuing time is the greater of:

(a)    the total amount of the superannuation benefits that would become payable if the individual voluntarily caused the interest to cease at the valuing time; and

(b)    the amount worked out by:

(i) adding together each amount of consideration paid for the interest for the income stream, and that amount ' s associated notional earnings, as worked out under subsection (3) for the day that includes the valuing time; and

(ii) subtracting, from the amount worked out under subparagraph (i), any amount commuted from the deferred superannuation income stream before the valuing time.

307-205.02C(2A)    

If the valuing time is after the payment start time, the value of the interest at the valuing time is the amount worked out under regulation 1.06B of the Superannuation Industry (Supervision) Regulations 1994 for a commutation of the deferred superannuation income stream that occurs at the valuing time.

307-205.02C(3)    
An amount of consideration paid for the interest for the income stream, and that amount ' s associated notional earnings, for a particular day (the valuing day ) is worked out by applying the following formula for each adjustment day (from the earliest to the latest):

307_205.02C_3_formula
          

where:

above threshold rate
, for a particular day, is the above threshold rate determined for that day under subsection 1082(2) of the Social Security Act 1991 .

adjustment day
is each of the following:

(a)    each 12-month anniversary of the consideration payment day that happens before the valuing day;

(b)    the valuing day.

applicable above threshold rate
, for a particular day, is:

(a)    if that day is a 12-month anniversary of the consideration payment day - the above threshold rate for that day; or

(b)    if that day is the valuing day - the proportion of the above threshold rate for that day equal to the number of days that the valuing day is in the 12 months starting on the day after:

(i) if the valuing day is at least 12 months after the consideration payment day - the most recent 12-month anniversary of the consideration payment day; or

(ii) otherwise - the consideration payment day.

compounded amount of consideration just before the adjustment day
is:

(a) for the earliest adjustment day - the amount of consideration; or

(b) for each later adjustment day - the result of applying the formula for the most recent earlier adjustment day.

consideration payment day
is the day the amount of consideration was paid.