G100 Discount Rate

The Group of 100 commissioned Milliman to develop a standardised set of discount rates to be made publicly available for the purpose of discounting employee benefit liabilities under Australian Accounting Standard 119 (AASB 119).

The research paper assesses whether the Australian corporate bond market meets the requirements as outlined in AASB119, and determines a methodology to derive a full discount rate curve allowing for possible limitations in available market data. The G100 discount rate curve will be available as a transparent central reference point for the industry to use on an ongoing basis. The G100 acknowledges the significant intellectual and financial support provided by the Actuaries Institute in the development of this methodology.