36Method

36 Method

For the purposes of subsection 115C(5) of the Act, the amount for an income year for the person is worked out as follows:

Calculation of multiplier amount

Step 1. Calculate the number of days (elapsed days) in the period:

(a) beginning on the first day in the income year that:

(i) a PPL funding amount for the person is paid to the person’s employer; or

(ii) an instalment is payable and paid to the person as referred to in paragraph 115B(1)(b) of the Act; and

(b) ending on the day that the Commissioner makes a determination for the person for the income year under section 115D of the Act.

Note: The period of time may end in the income year or in a subsequent income year: see subsection 115H(3) of the Act.

Step 2. Divide the number of elapsed days by 365.

Step 3. Multiply the amount worked out at step 2 by 10% (rounded to 4 decimal places and rounding up if the fifth decimal place is 5 or more).

Note: Example: Alex is eligible for a PPL superannuation contribution for the 2026‑2027 income year. Alex’s first PPL payment was made on 1 December 2026. On 1 October 2027 the Commissioner makes a section 115D determination of the PPL superannuation contribution payable to Alex, which includes Alex’s nominal interest rate amount for the 2026‑2027 income year. To work out the multiplier amount needed to calculate Alex’s nominal interest rate amount, the number of elapsed days (305) is divided by 365. Multiplying the result by 10% produces a multiplier amount, rounded to 4 decimal places, of 0.0836.