The value of the superannuation benefits on 31 December 2021 is the sum of each amount of consideration paid and associated earnings on that valuing day. Step 1 Work out the amount of consideration paid and associated earnings for the first instalment on the valuing day by using the formula in new subregulation 307205.02C(2) of the ITAR 1997. This is done by determining just before the the compounded amount of consideration earliest adjustment day and then determining the compounded amount of consideration, just before each later adjustment day, by applying the following formula in new subregulation 307205.02C(2) of the ITAR 1997 on each adjustment day, until the adjustment day is the valuing day: Compounded amount of Applicable above threshold = consideration just before the * 1 + rate for the adjustment day adjustment day The for the first instalment just before the compounded amount of consideration 1 July 2018 adjustment day (being the earliest adjustment day) is: $10,000 Then just before the 1 July 2019 adjustment day it is: $10,000 * 1.0375 Then just before 1 July 2020 adjustment day it is: $10,000 * 1.0375^² Then just before 1 July 2021 adjustment day it is: $10,000 * 1.0375^² *1.04 Then just before 31 December 2021 adjustment day it is with compounding – being applied on the 1 July 2021 adjustment day: $10,000 * 1.0375^² * 1.04^² The amount of consideration paid for the first instalment on the valuing day, 31 December 2021, is then: = $10,000 * 1.0375^² * 1.04^² * (1 + (.04 × (182/365)) = $11,874.62 Step 2 Work out the amount of consideration paid for the second instalment and associated earnings on the valuing day using the formula in new subregulation 307-205.02C(2) of the ITAR 1997 where the earliest adjustment day is 1 July 2019, that is: = $10,000 * 1.0375* 1.04^² * (1 + (.04 × (182/365)) = $11,445.41 Step 3
The value of the superannuation benefits on 31 December 2021 is the sum of each amount of consideration paid and associated earnings on that valuing day. Step 1 Work out the amount of consideration paid and associated earnings for the first instalment on the valuing day by using the formula in new subregulation 307205.02C(2) of the ITAR 1997. This is done by determining the compounded amount of consideration just before the earliest adjustment day and then determining the compounded amount of consideration, just before each later adjustment day, by applying the following formula in new subregulation 307205.02C(2) of the ITAR 1997 on each adjustment day, until the adjustment day is the valuing day: = Compounded amount of consideration just before the adjustment day * 1 + Applicable above threshold rate for the adjustment day The compounded amount of consideration for the first instalment just before the 1 July 2018 adjustment day (being the earliest adjustment day) is: $10,000 Then just before the 1 July 2019 adjustment day it is: $10,000 * 1.0375 Then just before 1 July 2020 adjustment day it is: $10,000 * 1.0375^² Then just before 1 July 2021 adjustment day it is: $10,000 * 1.0375^² *1.04 Then just before 31 December 2021 adjustment day it is – with compounding being applied on the 1 July 2021 adjustment day: $10,000 * 1.0375^² * 1.04^² The amount of consideration paid for the first instalment on the valuing day, 31 December 2021, is then: = $10,000 * 1.0375^² * 1.04^² * (1 + (.04 × (182/365)) = $11,874.62 Step 2 Work out the amount of consideration paid for the second instalment and associated earnings on the valuing day using the formula in new subregulation 307-205.02C(2) of the ITAR 1997 where the earliest adjustment day is 1 July 2019, that is: = $10,000 * 1.0375* 1.04^² * (1 + (.04 × (182/365)) = $11,445.41 Step 3
c2017-t166981-Explanatory_Memorandum.docx