Commonwealth Consolidated Acts

PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1948 - SECT 18A

Election

  (1)   If:

  (a)   a person is entitled to a retiring allowance under subsection   18(1A), (1B), (8A) or (8AC) or paragraph   18(2)(a) or (aa) or 18(2AA)(a), (b), (c) or (d); and

  (b)   an assessment is made of the surcharge on the person's surchargeable contributions for a financial year; and

  (c)   the person becomes liable to pay the surcharge under the assessment in accordance with paragraph   10(4)(c) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 ;

the person may, within:

  (d)   3 months after the assessment was made; or

  (e)   such longer period as the Trust allows;

give the Secretary of the Finance Department a written notice electing to commute the whole or a part of the person's retiring allowance to a lump sum benefit equal to the amount specified in the election.

  (1A)   However, a person may not make an election under subsection   (1) if the person has given the Secretary of the Finance Department a written notice under paragraph   22SC(2)(c).

  (2)   The election must be accompanied by:

  (a)   a written notice requesting that the amount of the lump sum benefit be:

  (i)   paid to the Commissioner of Taxation; and

  (ii)   wholly applied in payment of surcharge under the assessment; and

  (b)   a copy of the notice of assessment.

Surcharge commutation amount

  (3)   The amount specified in the election:

  (a)   must be equal to or less than the amount of surcharge under the assessment; and

  (b)   must not have the effect of reducing the person's retiring allowance below zero; and

  (c)   is to be known as the surcharge commutation amount for the purposes of this section.

Entitlement to lump sum benefit

  (4)   If a person makes an election under subsection   (1), the person is entitled to a lump sum benefit equal to the surcharge commutation amount.

Note:   The person's retiring allowance will be reduced under subsection   18(8AC).

  (5)   If a person is entitled to a lump sum benefit under subsection   (4), the liability to pay that benefit must be discharged by:

  (a)   paying the amount of that benefit to the Commissioner of Taxation in accordance with the person's request; and

  (b)   informing the Commissioner of Taxation of the person's request that the amount be wholly applied in payment of surcharge under the assessment concerned.

Notional adjustment debit

  (6)   If a person makes an election under subsection   (1) on a particular day, there is taken to have arisen at the start of that day a notional adjustment debit of the person equal to the amount worked out using the following formula:

where:

"conversion factor" means the factor applicable to the person under the determination made by the Trust under section   22B.

One election per assessment

  (7)   A person is not entitled to make more than one election under subsection   (1) in relation to a particular assessment.