4Method for determining amount of defined benefit contributions

4 Method for determining amount of defined benefit contributions

(1) The defined benefit contributions for an accruing member for a financial year is the amount worked out as follows: Image unavailable in extracted text

BC is the notional employer contribution calculated for the member under subclause (2).

NTC is the notional taxed contributions calculated for the member for the financial year under Schedule 1A to these Regulations, disregarding Subdivision 291‑C of the Income Tax (Transitional Provisions) Act 1997. If NTC has not been calculated for the member for the financial year because the member is a member of a constitutionally protected fund, NTC is zero.

Note 1: Section 291‑160 of the Act excludes superannuation interests in constitutionally protected funds from the provisions which explain how notional taxed contributions are to be calculated for defined benefit interests.

Note 2: Salary packaged contributions which do not contribute towards funding the defined benefit interest are included in the amount calculated under step 1 of the method statement set out in section 293‑105 of the Act and do not form any part of the method of determining defined benefit contributions.

(2) The notional employer contribution for an accruing member for a financial year is the amount worked out as follows: Image unavailable in extracted text

T is the sum of the amounts of notional employer financed contributions for each benefit category that the member belongs to during the financial year calculated under subclause (3).

W is an amount worked out on advice from an actuary under Part 4.

X is an amount worked out on advice from an actuary under Part 5.

Y is an amount worked out on advice from an actuary under Part 6.

Z is an amount worked out on advice from an actuary under Part 7.

(3) The notional employer financed contributions for an accruing member for a benefit category of a defined benefit fund for a financial year is the amount worked out as follows: Image unavailable in extracted text

D is the number of days during the financial year that the member was an accruing member of the benefit category.

M is the amount of member contributions: