Document ID: chunk:federal_register_of_legislation:F2024C00260:reg:10:p2
Version: federal_register_of_legislation:F2024C00260
Segment Type: reg
Provision Reference: reg 10 (pt 2/2)
Character Range: 62998–78290

The increase in the unfunded component is calculated:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (a) at the end of each financial year that occurs between the operative time and the relevant date; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b) immediately before the relevant date;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       using the applicable Treasury bond rate for the relevant period worked out in accordance with steps 2, 3 and 4, and compounded period by period.
                                                                                                                                                                                           Step 2                                                                                                                                                                                                                                                                                                                                                      First period
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Identify the shorter of:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (a) the period between the operative time and the end of the financial year in which the operative time occurs; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b) the period between the operative time and the day before the relevant date.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       This is the first period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Multiply the number of days in the first period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the first period occurs, and divide the result by 365.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Round the result to 3 decimal places.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       The result is the applicable Treasury bond rate for the first period.
                                                                                                                                                                                           Step 3                                                                                                                                                                                                                                                                                                                                                      Full financial years (if any)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Use this step if a full financial year occurs immediately after the end of the first period and before the relevant date. This is the second period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Identify the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Round the result to 3 decimal places.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       The result is the applicable Treasury bond rate for the second period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Repeat this arrangement for each full financial year after the second period.
                                                                                                                                                                                           Step 4                                                                                                                                                                                                                                                                                                                                                      Final period (if any)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Use this step if:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (a) there is any period between the end of a financial year and the relevant date; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b) neither step 2 nor step 3 covers that period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       This is the final period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Multiply the number of days in the final period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the final period occurs, and divide the result by 365.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Round the result to 3 decimal places.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       The result is the applicable Treasury bond rate for the final period.