Commonwealth Numbered Acts

SUPERANNUATION LEGISLATION AMENDMENT (SUPERANNUATION CONTRIBUTIONS TAX) ACT 1997 NO. 187, 1997 - SCHEDULE 3--Amendment

1 Subsection 4(1)

Insert:

surcharge debt account , in relation to a person who has held office as a member, means the surcharge debt account that was kept for the person (while he or she held that office) under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 .

2 Subsection 4(1)

Insert:

surcharge deduction amount , in relation to a person:

(a) who has held office as a member; and

(b) to or in respect of whom benefits become payable under this Act;

3 Before subparagraph 4(4A)(a)

Insert:

(aa) a member is taken to be employed by the Commonwealth; and

Add:

SECT 4E Surcharge deduction amount (1) If:

(a) benefits become payable to or in respect of a person who has held office as a member; and

(b) the person's surcharge debt account is in debit when those benefits become so payable;

(2) In making the determination, the Trust must have regard to the following:

(a) the amount by which the person's surcharge debt account is in debit when those benefits become payable;

(b) the value of the employer-financed component of those benefits;

(c) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 ) the notional surchargeable contributions factors applicable to the person, were assumed to be likely to be payable to the person on his or her ceasing to hold office as a member;

(d) whether the person has or had qualified for his or her maximum benefit entitlement under this Act;

(e) any other matter that the Trust considers relevant.

5 Subsection 18(1A)

Before "the benefit", insert "then, subject to subsection (8A),".

6 Subsection 18(1B)

Before "the benefit", insert "then, subject to subsection (8A),".

7 Subsection 18(2)

Omit "shall be", substitute "(subject to subsections (8A) and (8B)) is".

8 Subsection 18(2AA)

After "benefit", insert "(subject to subsections (8A) and (8B))".

9 Subsection 18(4)

Omit "shall be", substitute "(subject to subsection (8B)) is".

10 After subsection 18(8)

Insert:

(8A) If:

(a) a person's surcharge debt account is in debit when a benefit becomes payable to the person; and

(b) apart from this subsection, the person would be entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d);

where:

basic rate means the rate at which, when the retiring allowance becomes payable to the person, that retiring allowance would be payable to the person under this section if this subsection did not apply to him or her.

percentage means:

(a) if, apart from this subsection, the person would be entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a)--the percentage of the rate of parliamentary allowance by reference to which the rate of that retiring allowance would be ascertained (see subsection (6) and, if applicable, subsections (7) and (8)); or

(b) if, apart from this subsection, the person would be entitled to a retiring allowance under paragraph (2AA)(b), (c) or (d)--the percentage of the rate of parliamentary allowance specified in that paragraph.

(a) if paragraph (b) does not apply to the person--the amount obtained by dividing the person's surcharge deduction amount by the conversion factor applicable to the person under the determination made by the Trust under section 22A; or

(b) if the person has ceased to hold office as a member on more than one occasion--the amount obtained by:

(i) dividing the person's surcharge deduction amount on the last of those occasions by the conversion factor applicable to the person under the determination made by the Trust under section 22A; and

(ii) adding to the result obtained under subparagraph (i) the surcharge adjustment in respect of the person on the immediately preceding occasion on which the person ceased to hold office as a member.

(a) a person's surcharge debt account is in debit when a benefit becomes payable to the person; and

(b) apart from this subsection, the person would be entitled to a benefit under paragraph (2)(b) or (2AA)(e) or subsection (4);

(c) the amount that would be payable to the person under this section if this subsection did not apply to the person; and

(d) the person's surcharge deduction amount.

Insert:

(3A) A person who has made an election under subsection (3) to convert a percentage of his or her retiring allowance to a lump sum payment may, not later than 3 months after, but not earlier than 3 months before, becoming a person to whom this section applies, by notice in writing given to the Secretary to the Department of Finance, elect that the person's surcharge deduction amount be deducted from the lump sum payment

12 Subsection 18B(4)

Omit all the words before paragraph (a), substitute:

If the person has not made an election under subsection (3A), the amount of the lump sum payment is:

13 After subsection 18B(4)

Insert:

(4A) If the person has made an election under subsection (3A), the amount of the lump sum payment is the difference between:

(a) the amount of the lump sum payment that would have been payable to the person under subsection (4) if he or she had not made the election; and

(b) the person's surcharge deduction amount.

Omit "while entitled to a parliamentary allowance or".

15 After subsection 19AB(1A)

Insert:

(1B) If:

(a) on or after the commencement of this subsection, a person dies while entitled to a parliamentary allowance; and

(b) the deceased person is not survived by a spouse to whom an annuity is payable under section 19; and

(c) no benefits are payable in respect of a child or children of the deceased person or of a former spouse of the deceased person;

(1C) The amount of the benefit referred to in subsection (1B) is:

(a) if paragraph (b) does not apply--the amount by which the greater of the following:

(i) the sum of the contributions paid by the deceased person and the Commonwealth supplement in relation to him or her;

(ii) the superannuation guarantee safety-net amount in relation to the person;

exceeds the sum of any benefits under this Act paid to, or accrued due to, the person before his or her death; or

(b) if the deceased person's surcharge debt account is in debit when a benefit under this section becomes payable in respect of the person--an amount equal to the difference between:

(i) the amount referred to in (a); and

(ii) the person's surcharge deduction amount.

16 Subsection 20(1)

Repeal the subsection.

17 Subsection 20(1AA)

Omit "The person", substitute "If a person who has received an eligible lump sum amount under this Act again becomes a member, the person".

18 Subsection 20(1AD)

Repeal the subsection, substitute:

(1AD) The amount referred to in subsection (1AA) is calculated as follows:

(a) if paragraph (b) does not apply to the person--the amount is worked out by using the formula:

(b) if the person's surcharge debt account was in debit when the eligible lump sum amount became payable to the person--the amount is worked out by using the formula:

where:

parliamentary allowance at contract date means the annual amount of parliamentary allowance payable to a member at the date on which the person enters into the contract.

parliamentary allowance at retirement date means the annual amount of parliamentary allowance payable to a member at the date on which the person most recently retired from the Parliament.

surcharge deduction amount means the person's surcharge deduction amount when the eligible lump sum amount became payable to the person.

19 At the end of Part V

Add:

22A Determination with respect to surcharge deduction amount (1) The Trust must, in accordance with advice received from the Australian Government Actuary, determine in writing the conversion factor that, having regard to:

(a) the age of a member when a benefit under section 18 becomes payable to him or her; and

(b) other relevant factors (if any);

(2) A determination under subsection (1) must be published in the Gazette .

20 After section 26B

Insert:

26C Trustee of Scheme for purposes of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (1) For the purposes of the definition of trustee in section 43 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 , the Trust is taken to be the person who manages the retirement scheme constituted by this Act (the Scheme ).

Note: The definitions of public sector superannuation scheme , superannuation fund and trustee in section 43 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 are relevant to this section.