Income Tax Assessment (1997 Act) Regulations 2021

SCHEDULES

SCHEDULE 1AA  

Note: See subsection 293-115.20(2) .

WORKING OUT DEFINED BENEFIT CONTRIBUTIONS

PART 1 - PRELIMINARY  

Division 2 - Method  

4   Method of determining amount of defined benefit contributions  

4(1)    
The defined benefit contributions for an accruing member of a defined benefit fund for a financial year is the amount worked out using the following formula:

(BC − NTC) × 0.85 + NTC

where, for the financial year:

BC
is the notional employer contribution calculated for the member under subclause (2).

NTC
is the notional taxed contributions calculated for the member for the financial year under Schedule 1A disregarding Subdivision 291-C of the Income Tax (Transitional Provisions) Act 1997 .

Note 1:

Section 291-170.04 sets out circumstances in which notional taxed contributions are nil.

Note 2:

Salary packaged contributions which do not contribute towards funding the defined benefit interest are included in the amount calculated under step 1 of the method statement set out in section 293-105 of the Act and do not form any part of the method of determining defined benefit contributions.

4(2)    
The notional employer contribution for an accruing member of a defined benefit fund for a financial year is the amount worked out using the following formula:

where, for the financial year:

category change or discretion adjustment amount
is an amount worked out on advice from an actuary under Part 5 .

governing rules change adjustment amount
is an amount worked out on advice from an actuary under Part 6 .

increased exit benefit adjustment amount
is an amount worked out on advice from an actuary under Part 4 .

increased superannuation salary adjustment amount
is an amount worked out on advice from an actuary under Part 7 .

sum of NEFC
is the sum of the amounts of notional employer financed contributions for each benefit category that the member belongs to during the financial year calculated under subclause (3).

4(3)    
The notional employer financed contributions for an accruing member for a benefit category of a defined benefit fund for a financial year is the amount worked out using the following formula:

where, for the financial year:

member contributions amount
is the amount of member contributions:

(a) paid by or on behalf of the member in respect of the member ' s defined benefit interest in the fund during that part of the financial year that the member was an accruing member of the benefit category; and

(b) which are not assessable income of the fund;

but excluding any amounts which are not assessable income of the fund because of:

(c) item 5.3 of the table in section 50-25 of the Act; or

(d) a choice made under section 295-180 of the Act.

new entrant rate
is the new entrant rate for the benefit category worked out by an actuary under Parts 2 and 3 .

number of days
is the number of days during the financial year that the member was an accruing member of the benefit category.

superannuation salary amount
is the member ' s annual superannuation salary relevant to the benefit category on the first day of the financial year on which the member had a defined benefit interest in the fund.