Document ID: chunk:federal_register_of_legislation:F2023L00644:body:0:p14
Version: federal_register_of_legislation:F2023L00644
Segment Type: other
Provision Reference: 
Character Range: 49057–53430

on reinsurance contracts held; and
                                                                                          * other accounts payable on insurance contracts issued.
Reversal of tax impact of receivables                                              This is the value related to the reversal of tax effect of the receivable items:
                                                                                          * premiums receivable;
                                                                                          * amounts receivable on reinsurance contracts held;
                                                                                          * non-reinsurance recoveries receivable; and
                                                                                          * other accounts receivable on insurance contracts issued.

S
Surplus in defined benefit superannuation fund  This is the value of surplus (if any) in defined benefit superannuation funds where the private health insurer is an employer-sponsor, net of any associated deferred tax liabilities that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards.
                                                Representations may be made to APRA to include the surplus in the capital base provided the criteria are met as per HPS 112.

T
Tax effect of insurance liabilities surplus / (deficit)  This is the tax effect of the technical provisions in surplus (positive value) or deficit (negative value) of those required under HPS 340.
                                                         Full tax benefits and liabilities must be assumed for the purposes of reporting this item but they must be included when assessing the adjustment for excess of deferred tax assets over deferred tax liabilities.
Tier 1 Capital                                           Tier 1 Capital is calculated as the sum of:
                                                                * Common Equity Tier 1 Capital; and
                                                                * Additional Tier 1 Capital.
Tier 1 Capital ratio                                     Tier 1 Capital ratio is calculated as:
                                                             * Tier 1 Capital;
                                                         divided by:
                                                             * prescribed capital amount.
Tier 2 Capital                                           This is the total value of capital instruments that meet the eligibility criteria for Tier 2 Capital but not the criteria for the higher quality capital, net of all regulatory adjustments.
                                                         It is calculated as the sum of:
                                                                * eligible Tier 2 Capital instruments issued by the fund;
                                                                * adjustments and exclusions to Tier 2 Capital; and
                                                                * transitional Tier 2 Capital
                                                         less:
                                                                * holdings of own Tier 2 Capital instruments.
Transitional Additional Tier 1 Capital                   This is the value of capital instruments that have been temporarily recognised and approved as Additional Tier 1 Capital for transition purposes.
Transitional adjustments to net assets of the fund       This is the value of the transitional adjustment to net assets of the fund applicable to insurers electing to participate in the transitional arrangements referenced in HPS 112.
                                                         This adjustment is distinct from transitional Common Equity Tier 1 Capital as it applies to individual health benefits or general funds of the private health insurer only.
Transitional Common Equity Tier 1 Capital                This is the value of capital instruments that have been temporarily recognised and approved as Common Equity Tier 1 Capital for transition purposes.
                                                         This includes the transitional adjustment to Common Equity Tier 1 Capital for the private health