Document ID: chunk:federal_register_of_legislation:F2024C01248:reg:5:p10
Version: federal_register_of_legislation:F2024C01248
Segment Type: reg
Provision Reference: reg 5 (pt 10/13)
Character Range: 115527–118498

the pre‑1 July 88 taxable contributions for the income year.
 (2) The superannuation provider's actuary must retain the following documentation for the income year for not less than 5 years:
 (a) documentation of the liability and valuation apportionment calculations for step 1 of method 1;
 (b) documentation to support calculations made for the asset apportionment for step 2 of method 1.
 (3) The superannuation provider must retain documentation to support calculations of pre‑1 July 88 taxable contributions for the income year for not less than 5 years.

295‑265.03  How to calculate the discounted present value of liabilities for step 1 of method 1
 (1) This section sets out how to calculate the discounted present value of liabilities for step 1 of method 1 in section 295‑265.02.
 (2) The basis for the calculation in step 1 of method 1 must be the actuarial valuation basis relevant to the income year in question which the superannuation provider's actuary would consider appropriate for a valuation under Part 9 of the SIS Regulations.
 (3) In making the calculation, exclude the following liabilities that are not provided from taxable contributions:
 (a) liabilities representing benefits financed by undeducted contributions (within the meaning of subsection 27A(1) of the Income Tax Assessment Act 1936 as in force just before 15 March 2007);
 (b) liabilities representing benefits or components that are expected to be treated as paid from an untaxed source;
Example: Pensions provided on an emerging cost or pay as you go basis, with corresponding elections being made under subsection 295‑180(1) of the Act.
 (c) liabilities for entitlements relating to membership and for which corresponding assets can be identified;
Example:  Fully funded productivity, superannuation guarantee or salary sacrifice account balances.
 (d) liabilities representing death and disability benefits for which costs are claimed as deductible under section 295‑465 or 295‑470 of the Act.
 (4) Apportion the discounted present value of the liabilities, between:
 (a) the period of superannuation fund membership completed before 1 July 1988; and
 (b) the period of superannuation fund membership completed on and after 1 July 1988;
for each superannuation fund member or former member for whom a liability is being valued.
 (5) The apportionment must be made having regard to the following requirements and principles:
 (a) superannuation fund membership must be consistent with the definition used by the fund to determine the benefit being valued;
 (b) an alternative method for apportioning the discounted present value of liabilities may be used only if the superannuation provider's 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