Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Regulations 1997
Part 8Increases in employer‑provided benefits not allowed for under Part 3, 4, 5 or 6—G
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Schedule 1—Method for working out amount of surchargeable contributions
(paragraph 2M (3) (a))
Part 1—Preliminary
1 Meaning of employer‑provided benefit
For this Schedule, a benefit of any kind that is described as employer‑provided does not include any part of the benefit attributable to member contributions or any earnings in relation to those contributions.
2 Standard method for working out amount of surchargeable contributions
The standard 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:
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where, for that financial year:
A(f) is an amount worked out by an eligible actuary under Parts 2 and 3 that represents the present actuarial value of funded employer‑provided benefits not included in the value of D(f), E or F that accrued to, or may be provided in respect of, the member.
A(u) is an amount worked out by an eligible actuary under Parts 2 and 3 that represents the present actuarial value of unfunded employer‑provided benefits not included in the value of D(u), E or F that accrued to the member.
B(f) is an amount worked out by an eligible actuary under Parts 2 and 4 that represents the actuarial value of any funded employer‑provided benefit option not included in the value of A(f) that the member elects to exercise as a personal right.
B(u) is an amount worked out by an eligible actuary under Parts 2 and 4 that represents the actuarial value of any unfunded employer‑provided benefit option not included in the value of A(u) that the member elects to exercise as a personal right.
C(f) is an amount worked out by an eligible actuary under Parts 2 and 5 that represents the actuarial value of any discretionary funded employer‑provided benefits that may be provided in respect of the member by the scheme trustee or employer‑sponsor.
C(u) is an amount worked out by an eligible actuary under Parts 2 and 5 that represents the actuarial value of any discretionary unfunded employer‑provided benefits that may be provided in respect of the member by the scheme trustee or employer‑sponsor.
D(f) is an amount worked out by an eligible actuary that represents the actuarial value of any non‑discretionary funded employer‑provided accumulation benefits that accrued to the member.
D(u) is an amount worked out by an eligible actuary that represents the actuarial value of any non‑discretionary unfunded employer‑provided accumulation benefits that accrued to the member.
E is an amount worked out by an eligible actuary under Parts 2 and 6 that represents the actuarial value of employer‑provided death, disablement and other risk benefits not included in the value of A(f) or A(u) that may be provided in respect of the member.
F is an amount worked out by an eligible actuary under Part 7 that represents the value of the administration expenses (excluding investment expenses) in respect of the member.
G is an amount worked out by an eligible actuary under Parts 2 and 8 that represents the actuarial value of any increase in the actuarial value of A(f), A(u), B(f), B(u), C(f), C(u) or E that accrued to, or may be provided in respect of, the member because of the occurrence of an event in relation to the member.
H is an amount worked out under subsection 9(3) of the Act that represents the value of the post 20 August 1996 component of any eligible termination payment, within the meaning of paragraph (a) of the definition of that term in subsection 27A(1) of the Income Tax Assessment Act, made to the member that is rolled over to the scheme on or after 1 July 1997 and is not included in the value of A(f) or D(f).
Part 2—Valuation parameters
3 Application of economic, decrement and other parameters
For the purpose of working out the actuarial value of A(f), A(u), B(f), B(u), C(f), C(u), E and G mentioned in Part 1 for a member of a defined benefits superannuation scheme for a financial year, an eligible actuary is to apply the economic, decrement and other parameters set out in this Part.
4 Discount rate
(1) The discount rate to be applied is 8% a year.
(2) The discount rate is not to be adjusted for investment expenses or investment‑related taxation or for any other reason.
5 Rate of future salary or wages growth
(1) The rate of salary or wages growth to be applied is 4.5% a year.
(2) The rate is to be used:
(a) to project the value of future salary or wages; and
(b) to value employer‑provided benefits that increase in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Statistician).
6 Rate of increase in price indices
If a benefit is linked at any time to the increase in a published price index, the rate of increase in the price index to be applied for the purpose of projections is 2.5% a year.
Note: Example: Increases in the value of a pension may be linked to increases in the Consumer Price Index.
7 Rates of decrement and other parameters
(1) The rates of decrement and other parameters to be applied are the rates of decrement and other parameters adopted at the most recent actuarial valuation of the scheme that has a valuation date not later than 1 July of the first financial year to which the actuarial certificate prepared in accordance with the actuarial valuation applies.
(2) If an eligible actuary considers that the rates of decrement and other parameters adopted at the actuarial valuation mentioned in subclause (1) are no longer appropriate, the actuary is to set new rates of decrement and other parameters in accordance with subclause (3).
Note: Example: The rates of decrement and other parameters adopted for the purpose of preparing an actuarial valuation of a scheme may no longer be appropriate for the scheme because the nature of the work performed by members of the scheme may have changed.
(3) If an eligible actuary sets new rates of decrement and other parameters under subclause (2):
(a) the new rates of decrement and other parameters must be consistent with any other parameters set under this Schedule; and
(b) the actuary must be satisfied that the new rates of decrement and other parameters are appropriate in relation to the particular scheme.
(4) Unless this Schedule otherwise provides, if the scheme is a new scheme for which no actuarial valuation has been prepared, an eligible actuary is to set rates of decrement and other parameters for the scheme that are consistent with a comparable scheme and the other parameters set under this Schedule.
8 Increase in superannuation guarantee minimum employer‑provided benefits
If appropriate, minimum employer‑provided benefits that accrued to a member under the Superannuation Guarantee (Administration) Act 1992 are to be assumed to increase in accordance with increases provided by that Act.
Part 3—Employer‑provided benefits that accrued to member—A(f) and A(u)
9 Application of Part 3
This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year:
(a) the amount (A(f)) that represents the present actuarial value of funded employer‑provided benefits not included in the value of D(f), E or F that accrued to, or may be provided in respect of, the member for the financial year; and
(b) the amount (A(u)) that represents the present actuarial value of unfunded employer‑provided benefits not included in the value of D(u), E or F that accrued to the member for the financial year.
10 Present actuarial value of employer‑provided retirement, death, disablement and other risk benefits
(1) The present actuarial value of employer‑provided retirement, death, disablement or any other risk benefits that accrued to the member for the financial year is to be worked out using:
(a) an actual accrual method; or
(b) if an eligible actuary considers that an actual accrual method is not appropriate in relation to the member for the year, a proportionate method.
(2) The method that is used must be used consistently and must be applied so that the full benefit would accrue to the member over the whole period of the member’s membership.
11 Present actuarial value of employer‑provided resignation benefits
(1) The present actuarial value of employer‑provided resignation benefits that accrued to the member for the financial year is to be worked out in accordance with this clause.
(2) Employer‑provided resignation benefits based on the accumulation of member or employer contributions plus interest are to relate only to contributions, including projected contributions, payable up to 30 June in the financial year.
(3) Employer‑provided resignation benefits based on a defined benefit (for example, a benefit that is a percentage of a member’s final average salary for each year of membership or vesting into the accrued retirement benefit) are to relate only to the projected period of membership up to 30 June in the financial year.
(4) If, in working out the present actuarial value of employer‑provided resignation benefits that accrued to a member for a financial year, it is necessary to take account of future changes in vesting, the vesting factor is to be determined based on the period of membership, or completed service, up to the projected date of resignation.
Part 4—Employer‑provided benefit options exercised by a member—B(f) and B(u)
12 Application of Part 4
This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year:
(a) the amount (B(f)) that represents the actuarial value of any funded employer‑provided benefit option not included in the value of A(f) that the member elects to exercise as a personal right for the financial year; and
(b) the amount (B(u)) that represents the actuarial value of any unfunded employer‑provided benefit option not included in the value of A(u) that the member elects to exercise as a personal right for the financial year.
13 Employer‑provided benefit options available at 20 August 1996
(1) This clause applies if the option exercised by the member for the financial year was available to the member at 20 August 1996 under the rules of the scheme in force at that time.
(2) If, in the valuation of employer‑provided benefits that accrued to the member for each financial year since 20 August 1996, an eligible actuary allowed for the exercise of the option in accordance with the actuarial report made in relation to the relevant actuarial valuation of the scheme (including an assumption of zero that was used in the valuation and was noted in the actuarial report or the actuary’s working papers), the amount that represents the actuarial value of the option under this Part for the member for the financial year is zero.
(3) If, in the valuation of employer‑provided benefits that accrued to the member for any financial year since 20 August 1996, an eligible actuary did not allow for the exercise of the option in accordance with the actuarial report made in relation to the relevant actuarial valuation of the scheme, the amount that represents the actuarial value of the option under this Part for the member for the financial year is the lesser of:
(a) the difference between the value of all employer‑provided benefits taken by the member (including the option) and the actuarial value of all employer‑provided benefits that the actuary assumed would have accrued to the member at the date when the option was exercised, worked out using the valuation parameters set out in Part 2; and
(b) the post 20 August 1996 component of the difference between the value of all employer‑provided benefits taken on exercising the option and the actuarial value of the employer‑provided benefits that would have been taken by the member if the option had not been exercised.
14 Employer‑provided benefit options introduced after 20 August 1996
(1) This clause applies if the option exercised by the member for the financial year was introduced after 20 August 1996.
(2) If an eligible actuary:
(a) treated the introduction of the option as an event for the purpose of working out an amount under Part 8 for the member for a financial year (the first financial year); and
(b) allowed for the exercise of the option in the amount worked out under this Schedule for the member for each financial year after the first financial year;
the amount that represents the actuarial value of the option under this Part for the member for the financial year is zero.
(3) If an eligible actuary did not treat the introduction of the option as an event for the purpose of working out an amount under Part 8 for the member for the financial year, the amount that represents the actuarial value of the option under this Part for the member for the financial year is the amount that represents the difference between the value of the benefit taken and the greater of:
(a) the actuarial value of the benefit that the actuary assumed would be taken by the member in working out an amount under this Schedule for the member for the financial year; and
(b) the actuarial value of the benefits (excluding the value of the option) that had accrued to the member when the option was exercised worked out using the valuation parameters set out in Part 2.
Part 5—Discretionary employer‑provided benefits—C(f) and C(u)
15 Application of Part 5
This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year:
(a) the amount (C(f)) that represents the actuarial value of any discretionary funded employer‑provided benefits that may be provided in respect of the member for the financial year by the scheme trustee or employer‑sponsor; and
(b) the amount (C(u)) that represents the actuarial value of any discretionary unfunded employer‑provided benefits that may be provided in respect of the member for the financial year by the scheme trustee or employer‑sponsor.
16 Exercise of discretion
(1) Subclause (2) applies if an eligible actuary considers that a benefit will be provided for the financial year at the discretion of the scheme trustee, or employer‑sponsor, in respect of the member and, on the same basis, in respect of:
(a) each other member of the scheme; or
(b) if the member is a member of a class of members of the scheme, each other member of that class.
(2) The amount that represents the actuarial value of the benefit under this Part for the member for the financial year is an amount that represents the increase in the actuarial value of A(f) and A(u) that would accrue to the member for the financial year if the discretion were to be exercised in the way described in subclause (1).
(3) If subclause (2) does not apply, and the scheme trustee or employer‑sponsor exercises the discretion to provide a benefit (the provided benefit) in respect of the member for the financial year, the amount that represents the actuarial value of the benefit under this Part for the member for the financial year is the amount that represents the difference between the value of the provided benefit and the greater of:
(a) the actuarial value of the benefit that the actuary assumed would be provided by the scheme trustee or employer‑sponsor; and
(b) the actuarial value of the benefit (excluding the value of any additional benefits arising from the exercise of the discretion) that had accrued to the member when the discretion was exercised, worked out using the valuation parameters set out in Part 2.
Part 6—Employer‑provided death, disablement and other risk benefits—E
17 Application of Part 6
This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year, the amount (E) that represents the actuarial value of employer‑provided death, disablement and other risk benefits not included in the value of A(f) or A(u) that may be provided in respect of the member for the financial year.
18 Cost of death, disablement and other risk benefits
(1) The cost of death, disablement and other risk benefits is to be worked out based on the cost of insurance for 1 year for the non‑accrued (for example, future service) component of those benefits.
(2) Subject to subclause 7 (2), if the rates of decrement for death and disablement were assumed to be more than zero for the purposes of the most recent actuarial valuation of the scheme, the cost of cover for death and disablement is to be based on that assumption.
(3) If the rates of decrement for death and disablement were assumed to be zero for the purposes of the most recent actuarial valuation of the scheme, or no actuarial valuation of the scheme has been prepared, the rates of decrement for death and disablement to be applied are:
(a) the rates an eligible actuary expects to use at the next actuarial valuation of the scheme; or
(b) the relevant rates set out in the following table.
Member’s age at next birthday
Mortalitydecrement
Disablement decrement
15
0.00028
0.00001
16
0.00035
0.00001
17
0.00052
0.00001
18
0.00070
0.00002
19
0.00081
0.00002
20
0.00083
0.00003
21
0.00082
0.00006
22
0.00077
0.00010
23
0.00070
0.00012
24
0.00064
0.00014
25
0.00060
0.00016
26
0.00056
0.00017
27
0.00055
0.00019
28
0.00055
0.00020
29
0.00057
0.00023
30
0.00059
0.00025
31
0.00061
0.00027
32
0.00063
0.00029
33
0.00066
0.00032
34
0.00070
0.00035
35
0.00076
0.00040
36
0.00084
0.00045
37
0.00091
0.00050
38
0.00100
0.00057
39
0.00111
0.00065
40
0.00121
0.00073
41
0.00133
0.00083
42
0.00149
0.00097
43
0.00168
0.00112
44
0.00187
0.00130
45
0.00210
0.00151
46
0.00236
0.00177
47
0.00264
0.00207
48
0.00294
0.00241
49
0.00329
0.00283
50
0.00368
0.00333
51
0.00410
0.00391
52
0.00457
0.00460
53
0.00514
0.00548
54
0.00572
0.00647
55
0.00634
0.00761
56
0.00704
0.00897
57
0.00783
0.01063
58
0.00870
0.01258
59
0.00965
0.01489
60
0.01069
0.01759
61
0.01181
0.02076
62
0.01311
0.02459
63
0.01452
0.02909
64
0.01595
0.03413
65
0.01751
0.04001
Part 7—Administration expenses—F
19 Application of Part 7
This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year, the amount (F) that represents the value of the administration expenses (excluding investment expenses) in respect of the member for the financial year.
20 Rate of administration expenses
The rate of administration expenses (excluding investment expenses) to be applied is:
(a) the rate assumed for the purposes of the most recent actuarial valuation of the scheme; or
(b) if an eligible actuary considers that the rate of administration expenses adopted at the most recent actuarial valuation of the scheme is no longer appropriate, or no previous actuarial valuation of the scheme has been prepared, a rate that the actuary considers is appropriate for the particular scheme.
Part 8—Increases in employer‑provided benefits not allowed for under Part 3, 4, 5 or 6—G
21 Application of Part 8
(1) This Part applies for the purpose of working out, for a member of a defined benefits superannuation scheme for a financial year, the amount (G) that represents the actuarial value of any increase in the actuarial value of A(f), A(u), B(f), B(u), C(f), C(u) or E that accrued to, or may be provided in respect of, the member for the financial year because of the occurrence of an event in relation to the member for the year.
(2) For this Part, an event, in relation to a member of a scheme for a financial year, does not include any difference between the valuation parameters adopted under Part 2 for the member for the financial year and the actual experience of the scheme for the financial year.
22 General rule
(1) If the event is of a kind mentioned in clause 23, 24, 25 or 26, the actuarial value of any increase in the employer‑provided benefits that accrued to the member for the financial year because of the occurrence of the event is an amount worked out in accordance with the clause that relates to the event.
(2) If:
(a) the event is not of a kind mentioned in clause 23, 24, 25 or 26; and
(b) because of the occurrence of the event, the actuarial value of all employer‑provided benefits that had accrued to the member immediately after the event is greater than the actuarial value of all employer‑provided benefits that had accrued to the member immediately before the event;
the actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount worked out, in accordance with this Schedule, that represents the difference between:
(c) the actuarial value of all employer‑provided benefits that had accrued to the member immediately after the event; and
(d) the actuarial value of all employer‑provided benefits that had accrued to the member before the event.
(3) If the member’s scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.
23 Change in scheme rules or membership class
(1) This clause applies if:
(a) either of the following events occurs in relation to the member for the financial year:
(i) the rules of the member’s scheme are changed;
(ii) the member changes to a different membership class in the scheme; and
(b) the change results in an increase in the actuarial value of the employer‑provided benefits that accrued to the member for the financial year.
(2) The actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount that represents the difference between the actuarial value of all employer‑provided benefits that had accrued to the member immediately after the change and the greater of:
(a) the employer‑provided component of the actuarial value of the benefits that had accrued to the member immediately before the change worked out using the valuation parameters set out in Part 2; and
(b) the employer‑provided component of the standard vested benefit at the date of the change.
(3) If the scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.
(4) For the purposes of paragraph (2)(b), if there is an option in vested benefits, the reference to ‘standard vested benefit’ is a reference to the maximum value of the vested benefit.
24 Transfer by member to a different scheme
(1) This clause applies if the member transfers from the member’s scheme (the exited scheme) to another defined benefits superannuation scheme (the receiving scheme) in the financial year.
(2) If the actuarial value of the employer‑provided benefits that accrued to the member in both the exited scheme and the receiving scheme is the same, the amount worked out under this clause is zero.
(3) If the actuarial value of the employer‑provided benefits accruing to the member is greater in the receiving scheme than in the exited scheme, the actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount that represents the difference between the actuarial value of all employer‑provided benefits that had accrued to the member immediately after the transfer and the greater of:
(a) the employer‑provided component of the actuarial value of the benefits that had accrued to the member immediately before the transfer worked out using the valuation parameters set out in Part 2; and
(b) the employer‑provided component of the standard vested benefit at the date of the transfer.
(4) If the receiving scheme is a funded scheme, the amount worked out under subclause (3) is to be divided by 0.85.
(5) For the purposes of paragraph (3)(b), if there is an option in vested benefits, the reference to ‘standard vested benefit’ is a reference to the maximum value of the vested benefit.
25 Conversion from defined benefit membership to accumulation membership
(1) This clause applies if:
(a) the member’s benefits are converted to accumulation benefits in the financial year; and
(b) the conversion results in the member transferring to the accumulation membership an amount that exceeds the greater of:
(i) the actuarial value of all employer‑provided benefits that had accrued to the member before the conversion; and
(ii) the employer‑provided component of the member’s standard vested benefit for the financial year at the date of the conversion.
(2) The actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount that represents the difference between the opening balance of the part of the member account provided by the employer and the greater of:
(a) the employer‑provided component of the actuarial value of the benefits that had accrued to the member before the conversion worked out using the valuation parameters set out in Part 2; and
(b) the employer‑provided component of the standard vested benefit at the date of the conversion.
(3) If the scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.
(4) For the purposes of subparagraph (1)(b)(ii) and paragraph (2)(b), if there is an option in vested benefits, the reference to ‘standard vested benefit’ is a reference to the maximum value of the vested benefit.
26 Increase in pension in payment
(1) This clause applies if the amount of a pension being paid to the member in the financial year increases by an amount that is greater than the amount provided under the scheme rules in force at the later of:
(a) the time when the pension became payable; and
(b) 20 August 1996.
(2) The actuarial value of the increase in the employer‑provided benefits that accrued to the member for the financial year is an amount, worked out in accordance with this Schedule, that represents the difference between:
(a) the actuarial value of the pension after the increase; and
(b) the actuarial value of the pension before the increase.
(3) If the scheme is a funded scheme, the amount worked out under subclause (2) is to be divided by 0.85.
Run type (test/production) (for information in electronic form only)
103
File creation date
104
Preferred correspondence method
105
Medium specification version number (that is, the specification version number used to create the file)
106
Organisation name
107
Australian Business Number
108
Contact name
109
Contact telephone number
110
Contact facsimile number
111
Street address
112
Postal address
113
e‑mail address
114
Supplier file reference
115
ATO Corporate External Gateway User ID
Superannuation provider information
201
Tax file number
202
Australian Business Number
203
Superannuation fund number (SFN)
204
Date of report
205
Current name
206
Previous name (if any)
207
Contact name
208
Contact telephone number
209
Contact facsimile number
210
Street address
211
Current postal address
212
Previous postal address
213
e‑mail address
214
Address for service indicator
215
Financial year for which information is being given
216
Software product type
217
Superannuation administrator indicator
218
Fund benefit structure
Member information
301
System code
302
Superannuation provider member account number
303
Superannuation provider client identifier
304
Account benefit structure
305
Account opened date
306
Account status (whether active or closed)
307
Tax file number (if given to the provider in connection with the operation or possible future operation of the Act)*
308
Name*
309
Previous name (if any)
310
Sex
311
Date of birth*
312
Residential address*
313
Correspondence returned indicator
314
Date of death
Employer informationNote: This information is only required if the member’s residential address is not shown.
401
Name
402
Trading name
403
PAYE group number
404
Business address
Contributed amounts information
501
Period start date
502
Period end date
503
Total of contributed amounts*
504
Employer contributed amount (accumulation)*
505
Employer contributed amount (defined benefit)*
506
Post 20 August 1996 component of employer eligible termination payment rolled over on or after 1 July 1997*
507
Allocated surplus amount*
Schedule 3—Contributed amounts paid statement—additional information
(regulations 4 and 5)
Supplier information
101
Information on the matters set out under this heading in Schedule 2
Superannuation provider information
201
Information on the matters set out under this heading in Schedule 2
Member information
301
Name*
302
Tax file number (if given to the provider in connection with the operation or possible future operation of the Act)*
303
Previous name (if any)
304
Sex
305
Date of birth*
306
Residential address*
307
Date of death
Member exit information
401
Date when the employer financed component of benefit became payable, or commenced to be paid*
402
Either:
(a) if there is not a payment split under the Family Law Act 1975 in respect of the benefit—the amount representing 15% of the employer financed component of the part of the benefit payable to the member that accrued after 20 August 1996*; or
(b) if there is a payment split under the Family Law Act 1975 in respect of the benefit—the amount representing 15% of the employer financed component of that part of the benefit that:(i) would have been payable to the member but for the payment split; and(ii) accrued after 20 August 1996*
403
Date of death of member
404
If a member exit record has previously been incorrectly reported, a reason code
Schedule 4—Tax file number statement
(subregulation 11 (1))
Supplier information
101
Information on the matters set out under this heading in Schedule 2
Superannuation provider information
201
Information on the matters set out under this heading in Schedule 2
Member information
301
Information on the matters set out under this heading in Schedule 2
Employer informationNote: This information is only required if the member’s residential address is not shown.
401
Information on the matters set out under this heading in Schedule 2
Part Part 8 - Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Regulations 1997 - Increases in employer‑provided benefits not allowed for under Part 3, 4, 5 or 6—G | Zoe