Income Tax Assessment (1997 Act) Regulations 2021

SCHEDULES

SCHEDULE 1AA  

Note: See subsection 293-115.20(2) .

WORKING OUT DEFINED BENEFIT CONTRIBUTIONS

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

20  

20   Method of working out the increased exit benefit adjustment amount in the formula in subclause 4(2)  
For the purposes of the formula in subclause 4(2) :

(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.