Commonwealth legislation

Superannuation (Productivity Benefit) Declaration No. 2

In ForceCTH

Jurisdiction

Commonwealth

Act Number

173 of 1990

Collection

legislative instrument

Plain English Summary

3/10 complexity

This Declaration sets the numeric interest rate and the calculation method used to work out the "first interest factor" for superannuation productivity benefits for the financial year starting 1 July 1990. The Minister fixes the rate at 0.1355 per annum (based on the Reserve Bank’s published 10‑year Treasury bond yield) and prescribes a pro‑rata formula (Interest × Days ÷ 730). It affects employees entitled to productivity benefits and the employers/funds who must compute and pay those amounts.

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Superannuation (Productivity Benefit) Declaration No. 2

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Statutory Rules 1990 No. 1731

Declaration under the Superannuation
(Productivity Benefit) Act 1988

I, RALPH WILLIS, Minister for Finance, hereby make the following Declaration under paragraph 3E (1)(a) of the Superannuation (Productivity Benefit) Act 1988.

Dated 20 June 1990.

RALPH WILLIS

Minister for Finance

_________

DECLARATION UNDER PARAGRAPH 3E(1)(a) OF THE SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988

Citation

This Declaration may be cited as “Superannuation (Productivity Benefit) Declaration No. 2”.

Commencement

This Declaration takes effect from 1 July 1990.

Rate to be used

For the purposes of paragraph 3E (2) (a) of the Superannuation (Productivity Benefit) Act 1988, the rate of 0.1355, being the rate expressed as a decimal per annum that is the assessed secondary market yield last published by the Reserve Bank before 1 June 1990 in respect of 10-year non-rebate Treasury Bonds, is specified.

Specified formula

For the purposes of paragraph 3E (1) (a) of the Superannuation (Productivity Benefit) Act 1988, the declared first interest factor for the financial year commencing on 1 July 1990 is to be ascertained using the following formula:

Interest x Days

730

where:

“Interest” means the interest rate specified in clause 3;

“Days” means:

(a) in the case of an employee who becomes a fund employee-the number of days between the date of the last day of the first pay period of the employee ending after 1 July 1990 and the day on which an amount first becomes payable under section 4F of that Act and including both of those days;

(b) in the case of an employee who becomes entitled to receive an interim benefit under section 6 of that Act-the number of days between the date of the last day of the first pay period of the employee ending after 1 July 1990 and the day on which the employee became entitled to receive the benefit; or

(c) in the case of an employee who neither becomes a fund employee nor becomes entitled to receive an interim benefit the number of days between the date of the last day of the first pay period of the employee ending after 1 July 1990 and 30 June 1991.

Note: NOTE

Note: 1. Notified in the Commonwealth of Australia Gazette on 29 June 1990.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Superannuation (Productivity Benefit) Declaration No. 2