Commonwealth Numbered Regulations

INCOME TAX ASSESSMENT (1997 ACT) REGULATIONS 2021 (F2021L00206) - REG 307.205.02

             (1)  For the purposes of paragraph 307-205(1)(a) of the Act, this section 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 subsection (2) applies.

Note:          The proportioning rule in section 307-125 of the Act requires the tax free component and taxable component of a superannuation benefit to be paid out in the same proportion as they make up of the underlying interest. A value of the superannuation interest is required to ensure that the proportioning rule operates appropriately.

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

                     (a)  a superannuation income stream that is a pension mentioned in subparagraph 295-385.01(a)(i), (ii) or (iii); or

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

                              (i)  an identifiable lump sum amount; or

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

                     (c)  a superannuation income stream that is supported by a superannuation interest that can be valued under paragraph 307-205.02B(a); or

                     (d)  a superannuation income stream that is supported by a superannuation interest that can be valued under section 307-205.02C, 307-205.02D or 307-205.02E .

             (3)  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 for the superannuation income stream 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 for the superannuation lump sum set out in clause 2 of Schedule 1B.