Commonwealth Consolidated Regulations

SUPERANNUATION CONTRIBUTIONS TAX (ASSESSMENT AND COLLECTION) REGULATIONS 1997 - REG 2M

(1)

For paragraph 8 (5) (a) of the Act, this regulation sets out the method for working out the amount of the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of , a member of a defined benefits superannuation scheme for the 2000-2001 financial year, or a later financial year.

(2)

This regulation applies to a non-accruing member of a defined benefits superannuation scheme for a financial year unless the member is a non-accruing member of the scheme for the whole of the financial year.

Note    By virtue of subsection 8 (3) of the Act, the amount of surchargeable contributions for a financial year of a member of a defined benefits superannuation scheme who is a non-accruing member for the whole of the financial year is zero.

(3)

The method for working out the amount of the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of , a member of a defined benefits superannuation scheme for the 2000-2001 financial year, or a later financial year, is:

(a)

subject to paragraph (b), the standard method set out in Schedule 2; and

(b)

if the member satisfies the requirements of subregulation (4), the method set out in subregulation (5).

Note 1    If the application of the method set out in Schedule 2 results in a negative amount for a member for a financial year, the member has no surchargeable contributions for the financial year.
Note 2    An amount worked out using the method set out in Schedule 2 is relevant only for the financial year for which it is worked out. So, for example, a negative amount worked out for a member under Schedule 2 for a financial year cannot be used to offset a positive amount worked out under the Schedule for the member for a later financial year.

(4)

A member satisfies the requirements of this subregulation if:

(a)

the member is entitled to:

(i)

accumulation benefits only; or

(ii)

accumulation benefits and defined death or disablement benefits; and

(b)

the member has no present or future entitlement to a defined benefit under any other contingency.

(5)

For the purposes of paragraph (3) (b), the method is:

where, for the financial year for which the amount is being worked out:

A    is an amount that represents the value of administration expenses in respect of the member.

I    is an amount that represents the sum of:

(a) the cost of any insurance provided in respect of the member by an entity other than the scheme; and

(b) the value of any self-insurance provided in respect of the member.

(6)

If a member changes membership status in a financial year, the amount worked out under this regulation for the member for the financial year is the sum of the amounts worked out for the member for each period of membership status in the financial year.

(7)

In this regulation: