Document ID: chunk:federal_register_of_legislation:F2024C00852:reg:8:p4
Version: federal_register_of_legislation:F2024C00852
Segment Type: reg
Provision Reference: reg 8 (pt 4/8)
Character Range: 10185–13071

present date and the future time that the amount is payable or accrues.
           r is:
              (i) if this formula is used between the date ASIC Corporations (Amendment) Instrument 2024/733 commences and 31 December 2024—either 0.037 or 0.04; or
              (ii) if this formula is used on or after 1 January 2025—0.037; or
              (iii) in any case—such other assumed rate (expressed as a decimal fraction) as is inputted by the person;
              Note:  The default number for r in subparagraph (ii) assumes an inflation rate of 3.7% per year (which reflects the long‑term forecast of nominal wage growth in the Government's 2023 Intergenerational Report). A transitional default number for r is included in subparagraph (i) to accommodate the fact that the previous default number assumed an inflation rate of 4% per year (based on the long-term forecast of nominal wage growth in the Government's 2021 Intergenerational Report).
           (b) where the amount is payable or accrues to the person on or after they reach the assumed retirement age and the person has not yet reached that age:

          _      C  ____
          (1+r) a (1+s) b

           where:
           C is the estimate of the amount payable or accruing at the future time.
           a is the number of years and part years between the present date and the assumed retirement age.
           b is the number of years and part years between the assumed retirement age and the future time that the amount is payable or accrues (zero if the amount is payable or accrues on the date of retirement).
           r is:
              (i) if this formula is used between the date ASIC Corporations (Amendment) Instrument 2024/733 commences and 31 December 2024—either 0.037 or 0.04; or
              (ii) if this formula is used on or after 1 January 2025—0.037; or
              (iii) in any case—such other assumed rate (expressed as a decimal fraction) as is inputted by the person;
              Note:  The default number for r in subparagraph (ii) assumes an inflation rate of 3.7% per year (which reflects the long‑term forecast of nominal wage growth in the Government's 2023 Intergenerational Report). A transitional default number for r is included in subparagraph (i) to accommodate the fact that the previous default number assumed an inflation rate of 4% per year (based on the long-term forecast of nominal wage growth in the Government's 2021 Intergenerational Report).
           s is 0.025 or such other assumed inflation rate (expressed as a decimal fraction) for the purpose of the period between the assumed retirement age and the future time that the amount is payable or accrues as is inputted by the person;
              Note: The default number assumes an inflation rate of 2.5% per year (being the mid-point of the Reserve Bank of Australia's target range for consumer price