Commonwealth Consolidated Acts

SMALL SUPERANNUATION ACCOUNTS ACT 1995 - SECT 47

Application of steps

  (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:

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:

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.