Document ID: chunk:federal_register_of_legislation:F2022C00244:reg:31:p1
Version: federal_register_of_legislation:F2022C00244
Segment Type: reg
Provision Reference: reg 31 (pt 1/3)
Character Range: 40600–43416

31  Carry forward credit for distributions in excess of minimum
 (1) This section applies to a *private ancillary fund if the fund exceeds its annual minimum distribution for the *financial years 2019-20 to 2020-21, as calculated under subsection (2), by more than 4.
 (2) Work out how much a *private ancillary fund exceeds its annual minimum distribution for the *financial years 2019-20 to 2020-21 as follows:

      Method statement
           Step 1. Work out the fund's actual distribution for the 2019-20 financial year by dividing the fund's distributions made in that financial year by the *market value of the fund's net assets (as at the end of the previous financial year). The result should be expressed as a percentage and rounded to the nearest whole number.
           Step 2. Work out the fund's actual distribution for the 2020-21 financial year by dividing the fund's distributions made in that financial year by the market value of the fund's net assets (as at the end of the previous financial year). The result should be expressed as a percentage and rounded to the nearest whole number.
           Step 3. Add the result of step 1 with the result of step 2.
           Step 4. Reduce the result of step 3 by 10, but not so as to reduce the result to an amount less than nil.  The result is how much a *private ancillary fund exceeds its annual minimum distribution for the financial years 2019-20 to 2020-21.
 (3) Where this section applies, the minimum annual distribution rate for a *private ancillary fund the purposes of subsection 15(1) for a *financial year covered by subsection (4) of this section is 4 per cent.
 (4) The following are the *financial years covered by this subsection for a *private ancillary fund:
 (a) the 2021-22 financial year; and
 (b) the 2022-23 financial year; and
 (c) a subsequent financial year or years for each amount of 2 the result of the method statement in subsection (2) exceeds 4.
Example: If the result of the method statement in subsection (2) is 7 for a private ancillary fund, the 2023-24 financial year is also covered by subsection (4).

Endnotes

Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history

Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details