Superannuation Benefit Splits - Statutory Rate for 2013/14 Released

The statutory rate at which base amount splits in SMSFs are to be adjusted is 7.3% pa.

If a base amount has to be adjusted (eg because it has not been converted before the operative time) then the adjustment will be at the rate of 7.3% pa calculated for each day of the adjustment period.

If the adjustment period commenced on or after 1 July 2012 and ends on or before 30 June 2014 then the adjustment rate will be 6.9% for the days in the 2012/13 financial year and 7.3% for the days in the 2013/14 financial year. The adjustment rate for 2012/13 was 6.9%

A base amount split is adjusted to maintain the real value of the split as well as providing an incentive for the split to be converted into a benefit interest for the spouse.   The statutory rate applies irrespective of the actual earning rate of the SMSF.