Document ID: chunk:federal_register_of_legislation:F2023C01077:reg:3:p1
Version: federal_register_of_legislation:F2023C01077
Segment Type: reg
Provision Reference: reg 3 (pt 1/2)
Character Range: 56227–75284

3     An interest that a person has in the Scheme if the person is entitled to an associate deferred annuity under subsection 22CD (3) of the Act.                                                               where UTA is:
                                                                                                                                                                                                                  (a) the lump sum value of the transfer amount, as increased in accordance with the method set out below; or
                                                                                                                                                                                                                  (b) if section 22CD of the Act applies to the interest — the amount calculated under paragraph (a) less the sum of any reductions that apply under section 22CI of the Act, as if the annuity had become payable at the operative time.

                                                                                                                                                                                                                 Method for increasing transfer amount
                                                                                                                                                                                                                 Step 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Increase the transfer amount for any period between the operative time (being the operative time in relation to the splitting agreement or splitting order as a result of which the person has the entitlement under subsection 22CD (3) of the Act) and the operative time, using the Treasury bond rate for the last working day of the financial year ending immediately before the period for which the increase is being calculated for bonds with a 10 year term.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Note   The period between the operative time and the operative time may include a number of full financial years, or may occur entirely within a single financial year.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Treasury bond rate for bonds with a 10 year term

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The Treasury bond rate for the last working day of a financial year for bonds with a 10 year term is:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (a) if any Treasury bonds with that term were issued on that day — the annual yield on those bonds; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (b) in any other case — the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Calculation of increase in transfer amount

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The increase in the transfer amount is calculated:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (a) at the end of each financial year that occurs between the operative time and the operative time; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (b) immediately before the operative time;

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   using the applicable Treasury bond rate for the relevant period worked out in accordance with steps 2, 3 and 4, and compounded period by period.
                                                                                                                                                                                                                 Step 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            First period

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Identify the shorter of:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (a) the period between the operative time and the end of the financial year in which the operative time occurs; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (b) the period between the operative time and the operative time.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   This is the first period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Multiply the number of days in the first period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the first period occurs, and divide the result by 365.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Round the result to 3 decimal places.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The result is the applicable Treasury bond rate for the