Document ID: chunk:federal_register_of_legislation:F2024C01248:reg:5:p11
Version: federal_register_of_legislation:F2024C01248
Segment Type: reg
Provision Reference: reg 5 (pt 11/13)
Character Range: 118214–121112

actuary certifies that the method will provide a reasonable approximation of the apportionment;
 (c) a linear apportionment method will generally be used, but an apportionment method that reflects non‑linear accrual of entitlements may be used if the superannuation provider's actuary considers that such a method achieves an outcome that is consistent with the principle that funding credits can only be used against contributions intended to provide for entitlements relating to membership completed before 1 July 1988.

295‑265.04  How to calculate the assets available to fund pre‑1 July 88 liabilities for step 2 of method 1
 (1) This section sets out how to calculate the assets available to fund pre‑1 July 88 liabilities for step 2 of method 1 in section 295‑265.02.
 (2) In making the calculation in step 2 of method 1, allow deductions for realisation costs and charges incurred in the normal course of operation of the superannuation fund.
 (3) Deduct the amount of assets that relate to excluded liabilities mentioned in subsection 295‑265.03(3).
 (4) All remaining assets should be treated as available to fund pre‑1 July 88 liabilities unless the superannuation provider can provide the superannuation provider's actuary with written evidence to support exclusion of both an amount of assets and a corresponding value of liabilities.

295‑265.05  Method 2—Notionally updated funding credit valuation process
 (1) The following is method 2 for the purposes of section 295‑265.01.

      Method statement
           Step 1: For an income year (the current income year), the superannuation provider's actuary must notionally adjust the value of pre‑1 July 88 liabilities of the superannuation fund for the previous income year from the start of the previous income year to the start of the current income year, taking into account any factors likely to affect that value.
            In making a calculation the actuary must have regard to the valuation basis that would be used by the fund if method 1 were being used for the current income year.
            In making a calculation the actuary must have regard to actual experience gained from the operation of the fund if the experience is materially different from valuation assumptions used in the calculation of the value of pre‑1 July 88 liabilities for the previous income year.
            The result is the value of pre‑1 July 88 liabilities for the current income year.
           Step 2: The actuary must notionally adjust the assets available to fund pre‑1 July 88 liabilities of the superannuation fund for the previous income year from the start of the previous income year to the start of the current income year, taking into account any factors likely to affect those assets, including by:

                (a) adding taxable contributions allocated to fund pre‑1 July 88 taxed liabilities in the previous income year;