Superannuation (Productivity Benefit) Penalty Interest Determination No. 2 (Cth)

Statutory Rules 1994   No. 211¹

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Superannuation (Productivity Benefit) Penalty Interest Determination No. 2

I, KIM CHRISTIAN BEAZLEY, Minister for Finance, make the following Determination under section 4G of the Superannuation (Productivity Benefit) Act  1988.

Dated 20 June 1994.

KIM C. BEAZLEY

Minister for Finance

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Citation

1.   This Determination may be cited as Superannuation (Productivity Benefit) Penalty Interest Determination No. 2.

Commencement

2.   This Determination commences on 1 July 1994.

Interpretation

3.   In this Determination,“Act” means the Superannuation (Productivity Benefit) Act 1988.

How to calculate interest—subsection 4G (1) of the Act

4.   For the purposes of subsection 4G (1) of the Act, the interest fixed under that section in relation to a fund on a day is to be calculated using the formula:

where:

“Amount” means:

(a)   the amount that should have been paid to a declared fund under paragraph 4E (a) of the Act on the day on which an interim arrangement employee became a member of a declared fund; or

(b)   each amount that should have been paid to a declared fund under subsection 4F (1) of the Act on a day ascertained in accordance with subsection 4F (2) of the Act;

“Days” means the number of days in the period:

(a)   commencing on the day on which the amount should have been paid; and

(b)   ending on the day immediately before the day on which the amount was paid.

How to calculate interest—subsection 4G (2) of the Act

5.   For the purposes of subsection 4G (2) of the Act, the interest fixed under that section in relation to the Fund on a day is to be calculated using the formula:

where:

“Amount” means the amount that should have been paid to the Board under paragraph 4EA (a) of the Act on the day on which an interim arrangement employee became a scheme employee;

“Days” means the number of days in the period:

(a)   commencing on the day on which the amount should have been paid; and

(b)   ending on the day immediately before the day on which the amount was paid.

[NOTE:  In clauses 4 and 5, the factor “0.1045” is intended to represent the interest rate that is the estimated closing yield last published by the Reserve Bank of Australia before 1 June 1994 in respect of 10-year non-rebate Treasury Bonds, plus an amount equal to 2% per annum.]

Revocation

6. Superannuation (Productivity Benefit) Penalty Interest Determination² is revoked.

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NOTE

1.   Notified in the Commonwealth of Australia Gazette on 30 June  1994.

2.   Statutory Rules 1993 No. 186.