Document ID: chunk:federal_register_of_legislation:F2023L00208:front:0:p8
Version: federal_register_of_legislation:F2023L00208
Segment Type: other
Provision Reference: 
Character Range: 19322–22720

may, by notice in writing to a life company, adjust or exclude a specific requirement in this Prudential Standard in relation to that life company.

Determinations made under previous prudential standards
    52.         An exercise of APRA's discretion (such as an approval, waiver or direction) under a previous version of this Prudential Standard continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard. Prudential Standard LPS 4.02 Minimum Surrender Values and Paid-up Values may be regarded as a previous version of this Prudential Standard.

Attachment 1

Prescribed parameters
     1. The prescribed parameters in the following parts of this Attachment are, where relevant, shown PRE and POST, to reflect a change in the taxation arrangements for life insurance companies as at 1 July 2000.
       (a)          PRE parameters apply in respect of transactions occurring pre 1 July 2000; and
       (b)          POST parameters apply in respect of transactions occurring post 30 June 2000
    unless specifically stated otherwise.

    2.             All parameters are effectively net of tax parameters where tax has been provided for at the rates applicable to the different classes of business.
Part I - fixed dollar charge

    3.             Applicable for unbundled investment business, immediate annuities and fixed term/rate business:
                    PRE     POST
                    charge  charge

    Ordinary        $75     $90

    Superannuation  $120    $90

    Tax exempt      $135    $90

    Note: Dollar amounts are those applying to calendar year 2012. In earlier or subsequent years the dollar amount applying is that figure indexed in line with the Consumer Price Index (CPI) as published at 30 September of the immediately preceding year.

Part II - unbundled investment business

                                PRE                                                POST
                                charges                                            charges

Regular premium

Ordinary – all                  First 1.5 years, 100% of premiums paid or payable  First 1.5 years, 100% of premiums paid or payable

Superannuation – participating  First 2 years, 100% of premiums paid or payable    First 2 years, 100% of premiums paid or payable

Superannuation –                First 2 years, 100% of premiums paid or payable    First 1.5 years, 100% of premiums paid or payable
non-participating

Single premium                   PRE                    POST

Ordinary                         6.0% of premiums paid  6.5% of premiums paid

Superannuation – participating   7.5% of premiums paid  7.5% of premiums paid

Superannuation –                 7.5% of premiums paid  6.5% of premiums paid
non-participating

Tax exempt                       9.0% of premiums paid  6.5% of premiums paid

Part III - traditional business and long term risk business

    4.             The following parameters apply:
       (a)          the rate of interest in determining the paid-up value is 4.00% p.a.;

       (b)          the rate of interest in determining the termination value is 4.50% p.a.;

       (c)          the rate of mortality is the 'A1924-29 Table'; and

       (d)          the allowance for cost of services is implicit through the use of a Sprague adjustment in