The Solvency Standard is Actuarial Standard 2.02 or Actuarial Standard (Friendly Societies) 2.01 [Schedule 9, item GK31, subsection 995-1(1)]. The Valuation Standard is Actuarial Standard 1.02 or Actuarial Standard (Friendly Societies) 1.01 [Schedule 9, item GK38, subsection 995-1(1)].

The implications of transfers to and from a virtual PST are summarised in section 1 of Appendix 5A.

The implications of transfers to and from segregated exempt assets are summarised in section 2 of Appendix 5A.

The notional undeducted cost of an asset is its undeducted cost reduced by amounts assumed under subsection 320-255(6) to have been deducted for depreciation. [Schedule 9, item 38, subsection 995-1(1)]

An allocated pension is a current pension that satisfies the requirements of subregulation 1.06(4) of the Superannuation Industry (Supervision) Regulations [Schedule 2, item 28, subsection 267(1)]. A current pension means a pension that has begun to be paid [Schedule 2, item 29, subsection 267(1)]. This includes a pension where the period in respect of which the pension relates has commenced.

An allocated annuity is an immediate annuity that satisfies the requirements of subregulation 1.05(4) of the Superannuation Industry (Supervision) Regulations. [Schedule 2, item 27, subsection 267(1)]

The implications of transfers to and from segregated current pension assets or segregated exempt superannuation assets are summarised in section 3 of Appendix 5A.

The notional undeducted cost of an asset means its undeducted cost reduced by the amounts assumed under subsection 273H(5) to have been deducted for depreciation. [Schedule 2, item 37, subsection 267(1)]

The transfer value of an asset is the amount that could be expected to be received from the disposal of the asset in an open market after deducting any costs expected to be incurred in respect of the disposal [Schedule 2, item 42, subsection 267(1)]. If the asset transferred from segregated current pension assets is money, the transfer value is the amount of the money [Schedule 2, item 43, paragraph 273A(7)(b)].

See Chapter 8 for conversion of class C franking account for the reduction of the company tax rate.

Franking credits for the payment of tax by life assurance companies are dealt with under Part 2 of Schedule 3 (see Chapter 7).

Adjusted amount is defined in section 160APA of the ITAA 1936. Generally speaking, the adjusted amount of a payment of tax represents the amount of taxable income that generated the payment - based on the appropriate company tax rate.

The original franking credits generated when the PAYG instalments were paid will have been offset by a franking debit for the refund arising from the application of the RBA surplus. The application produces a refund because it represents a return to the taxpayer of an amount previously paid - see paragraph 6.27.

PAYG instalments paid by life assurance companies are dealt with under Part 2 of Schedule 3 (see Chapter 7).

No franking credit or debits arise for mutual life assurance companies under either the current law or the proposed measures.

See Chapter 6 for the definition of payment.

Adjusted amount is defined in section 160APA of the ITAA 1936. Generally speaking, the adjusted amount of a payment of tax represents the amount of taxable income that generated the payment - based on the appropriate company tax rate.

By definition, company tax may only be paid on or after assessment.

Class A franking credits arising after 30 June 2000 are converted into equivalent class C franking credits - see Chapter 8 for details.

For treatment of class A franking credits arising after 1 July 2000 see Chapter 8.

The amount of the class A franking credits have been recorded in the table at the converted class C equivalent.

These class C franking credits also arise for payments after assessment.

Class C franking credits also arise in relation to payments after assessment under sections 160APM, 160APMAA and 160APMD.

These class C franking debits also arise for refunds received after assessment.

Refunds after assessment also produce class C franking debits under sections 160APY, 160APYA and 160APYBA.

Note, too, the amendments contained in the NBTS Miscellaneous Bill 1999 that propose to limit the application of the intercorporate dividend rebate to franked dividends only.

Equivalent provisions exist in respect of indirect distributions received under subsection 160APQ(3).

Provided certain other conditions are met.

See Chapter 5.

Description of the current law covers the provisions introduced in the NBTS Miscellaneous Bill 1999.

A notional gain is the extra capital gain a beneficiary is taken to have made, that has been 'grossed-up' in terms of subsection 115-215(3) of the ITAA 1997. That part of the capital gain component of the income of the trust attributable to the beneficiary is multiplied by a factor of 1, 2 or 4, depending on the CGT concessions the trustee claimed.

The measures relating to the PAYG instalment regime contained in this Bill did not arise from the Recommendations of the Review. The PAYG system was implemented as part of the Government's ANTS reforms. While these measures did not arise from the Review, they are nevertheless broadly consistent with the Review and its objectives.