Commonwealth Numbered Acts

SMALL SUPERANNUATION ACCOUNTS ACT 1995 No. 52, 1995 - SECT 47

Application of steps
47.(1) To work out the allocation rate for a quarter, apply the following
steps.

Adjusted total balances

(2) Calculate the adjusted total balances for the quarter by:

   (a)  working out, for each day in the quarter, the total balances of all
        the accounts; and

   (b)  adding up those totals; and

   (c)  dividing the result by the number of days in the quarter. For the
        purposes of this calculation, if an account balance actually exceeds
        $1,200, the account balance is taken to be $1,200.

Provisional rate

(3) Calculate the provisional rate for the quarter as a percentage (to 4
decimal places) using the formula:
Net interest amount - 100
Adjusted total balances where:

"Net interest amount" means the net interest amount for the quarter;

"Adjusted total balances" means the adjusted total balances for the quarter.
Note: "Net interest amount" is defined by section 39.

Total balances

(4) Calculate the total balances for the quarter by:

   (a)  working out, for each day in the quarter, the total balances of all
        the accounts; and

   (b)  adding up those totals; and

   (c)  dividing the result by the number of days in the quarter.

Capped rate

(5) Calculate the capped rate as a percentage (to 4 decimal places) using the
formula:
Gross interest amount - 100
Total balances where:

"Gross interest amount" means the gross interest amount for the quarter;

"Total balances" means the total balances for the quarter.
Note: "Gross interest amount" is defined by section 38.

Allocation rate-comparison between provisional rate and capped rate

(6) Compare the provisional rate with the capped rate:

   (a)  if the provisional rate is less than or equal to the capped rate-the
        allocation rate equals the provisional rate; or

   (b)  if the provisional rate exceeds the capped rate-the allocation rate
        equals the capped rate.