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(1)(a) of the Act, this section specifies a method for determining the value at a particular 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)    
The value of the interest at a particular time is the greater of:

(a)    the sum of 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 that time; and

(b)    the total amount of the superannuation benefits that would become payable if the individual voluntarily caused the interest to cease at that time.

Note:

Subsection (3) works out a total amount made up of the amount of consideration and its associated notional earnings.

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):

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.