Commonwealth Consolidated Regulations

INCOME TAX ASSESSMENT REGULATIONS 1997 - REG 307.205.02

         (1)   For paragraph 307‑205 (a) of the Act, this regulation:

                (a)    applies to a superannuation income stream or a superannuation annuity, other than:

                          (i)    a superannuation income stream of a type prescribed by regulation 295‑385.01; or

                         (ii)    a superannuation income stream or a superannuation annuity for which the rules providing for the income stream or annuity are based on:

                                   (A)     an identifiable lump sum amount; or

                                   (B)     the amount available in the member's account; or

                         (iii)    a superannuation income stream that is supported by a superannuation interest that can be valued under paragraph 307‑205.02B (a); and

               (b)    specifies a method for determining the value of a superannuation interest at a particular time if the interest supports a superannuation income stream to which this regulation applies.

Note    The proportioning rule requires the tax‑free and taxable components of superannuation to be paid out as benefits in the same proportion as they make up of the underlying interest. A value of a superannuation interest is required to ensure that the proportioning rule operates appropriately.

         (2)   The value of the interest at a particular time is the sum of:

                (a)    the product of:

                          (i)    the annual amount of the superannuation income stream payable in respect of the superannuation interest at that time; and

                         (ii)    the applicable factor set out in clause 1 of Schedule 1B; and

               (b)    the product of:

                          (i)    the nominal value of the superannuation lump sum, if any, which is payable in respect of the interest
at a time in the future, other than a future lump sum which is a commutation of the income stream included in subparagraph (a) (i); and

                         (ii)    the applicable factor set out in clause 2 of Schedule 1B.

307‑205.02A     Superannuation income streams or superannuation annuities based on identifiable amounts -- value of an interest

                For a superannuation income stream or a superannuation annuity mentioned in subparagraph 307‑205.02 (1) (a) (ii), the value of the superannuation interest that supports the income stream or annuity is:

                (a)    the identifiable lump sum amount; or

               (b)    the amount available in the member's account.

307‑205.02B     Public sector superannuation schemes -- value of an interest

                A superannuation interest in a public sector superannuation scheme is to be valued:

                (a)    by using the practice for valuing a superannuation interest (other than an interest that supports a superannuation income stream mentioned in subparagraph 307‑205.02 (1) (a) (i)) that was used by the scheme immediately before
28 June 2007; or

               (b)    if there was not a practice for valuing an interest at
that time -- by using the method in subregulation 307‑205.02 (2).