Document ID: chunk:federal_register_of_legislation:F2024C01248:reg:5:p9
Version: federal_register_of_legislation:F2024C01248
Segment Type: reg
Provision Reference: reg 5 (pt 9/13)
Character Range: 112867–115798

the amount that the superannuation provider wishes to specify for the purposes of subsection 295‑265(1) of the Act; and
 (b) the income year is the first or second year after an income year for which method 1 was used to calculate the amount applicable to the fund.

Professional standards must be followed etc.
 (9) The superannuation provider must ensure that, in making a calculation under or applying method 1 or 2, the superannuation provider's actuary:
 (a) follows any professional standards prepared by the Institute of Actuaries of Australia; and
 (b) has regard to any professional guidance notes prepared by the Institute of Actuaries of Australia;
that relate to the determination of accrued benefits mentioned in method 1 or 2.

Superannuation provider must provide information to support working out, if requested
 (10) The superannuation provider must, if requested to do so by the Commissioner, provide the Commissioner with sufficient information to support the provider's working out of the amount applicable to the fund under subsection 295‑265(6) of the Act for an income year.

295‑265.02  Method 1—Funding credit valuation process
 (1) The following is method 1 for the purposes of section 295‑265.01.

      Method statement
           Step 1: For an income year for which a superannuation provider chooses to reduce the amount of contributions that would otherwise be included in a superannuation fund's assessable income, calculate, in accordance with section 295‑265.03, the discounted present value of liabilities as at the start of that income year that relates to membership completed.
            The discounted present value of liabilities for all members apportioned to pre‑1 July 88 membership is the value of pre‑1 July 88 liabilities for the income year.
           Step 2: Calculate, in accordance with section 295‑265.04, the total amount of superannuation fund assets at their market value at the start of the income year, on the basis on which the superannuation provider's actuary would consider appropriate for a valuation under Part 9 of the SIS Regulations.
            The result is the assets available to fund pre‑1 July 88 liabilities for the income year.
           Step 3: Deduct the assets available to fund pre‑1 July 88 liabilities for the income year from the value of pre‑1 July 88 liabilities for the income year.
            The result is the value of unfunded pre‑1 July 88 liabilities for the income year.
           Step 4: The amount of taxable contributions that are allocated to fund that value of unfunded pre‑1 July 88 liabilities, as notified by the superannuation provider to the actuary, are 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