Income Tax Assessment (1997 Act) Regulations 2021

SCHEDULES

SCHEDULE 1A  

Note: See sections 291-170.02 , 291-170.05 and 291-170.07 and Schedule 1AA .

METHOD OF WORKING OUT AMOUNT OF NOTIONAL TAXED CONTRIBUTIONS

PART 4 - EXERCISE OF DISCRETION TO PAY A BENEFIT GREATER THAN THE BENEFIT ASSUMED IN CALCULATING THE NEW ENTRANT RATE  

4.1  

4.1   Method of working out the increased exit benefit adjustment amount in the formula in clause 1.8  
For the purposes of the formula in clause 1.8 :

(a)    for a financial year in which the trustee of the defined benefit fund pays, as a result of an exercise of a discretion, a benefit to the member on:

(i) voluntary exit; or

(ii) redundancy that is not bona fide;

which exceeds the benefit assumed in calculating the new entrant rate for the benefit category to which the member belongs at the time the benefit is paid - the increased exit benefit adjustment amount equals an amount worked out on advice from an actuary that represents the amount of the excess; and

(b)    for any other financial year - the increased exit benefit adjustment amount equals zero.

Note:

If the trustee decides to pay an untaxed benefit rather than a taxed benefit, any excess of the amount of the untaxed benefit over the amount of the taxed benefit that would otherwise have been payable is not to be included in the increased exit benefit adjustment amount.