Commonwealth Numbered Acts

SUPERANNUATION LEGISLATION AMENDMENT (SUPERANNUATION CONTRIBUTIONS TAX) ACT 1997 NO. 187, 1997 - SCHEDULE 5--Amendment

1 Section 4

Insert:

period of exempt service :

(a) in relation to a Judge who has prior judicial service--means any period in that service in respect of which no superannuation contributions surcharge was assessed to be payable on the Judge's surchargeable contributions under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 ; or

(b) in relation to a person:

(i) who is a Judge because of paragraph (b) of the definition of Judge in this subsection; or

(ii) who, being a presidential member of the Administrative Appeals Tribunal, is taken to be a Judge for the purposes of this Act because of section 16 of the Administrative Appeals Tribunal Act 1975 ;

and the period of whose service as a Judge began before 21 August 1996--means the part of that period of service before that date.

Insert:

period of service as a Judge has a meaning affected by subsection (2).

3 Section 4

Insert:

qualifying period for a pension , in relation to a person who has served as a Judge, has the meaning given by subsection (3).

4 Section 4

Insert:

Scheme means the scheme constituted by this Act for the provision of retirement and other benefits to and in respect of Judges.

5 Section 4

Insert:

superannuation contributions surcharge has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997 .

6 Section 4

Insert:

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

7 At the end of section 4

Add:

(2) If a Judge has had prior judicial service, the period of that service is to be added to, and is taken to be part of, the period of his or her service as a Judge.

(3) The qualifying period for a pension , in relation to a person who has served as a Judge, is:

(a) if the period of the person's service as a Judge started when the person was not yet 50--a period equal to the number of years worked out by using the formula:

(b) if the period of the person's service as a Judge started after the person had turned 50 but before he or she had turned 60--a period of 10 years; or

(c) if the period of the person's service as a Judge started after the person had turned 60--a period equal to the number of years worked out by using the formula:

where:

age at start of period means the person's age at the start of the period of his or her service as a Judge.

8 Section 6

After "he" (wherever occurring), insert "or she".

9 Section 6

After "his" (wherever occurring), insert "or her".

10 Subsection 6(1)

Omit all words after "pension", substitute "in accordance with subsection 6A(2) or 6B(2)".

11 Subsection 6(2)

Omit all words after "pension", substitute "in accordance with subsection 6A(2) or 6B(2)".

12 Subsection 6(2A)

Omit "to a pension".

13 Paragraph 6(2A)(a)

Omit "at the rate specified in subsection (1)", substitute "to a pension in accordance with subsection 6A(2) or 6B(2)".

14 Paragraph 6(2A)(b)

Omit "at the prescribed rate", substitute "to a pension in accordance with subsection 6A(3) or 6B(2)".

15 Subsection 6(2B)

Omit all words after "pension" (first occurring), substitute "in accordance with subsection 6A(3) or 6B(2) should receive a pension in accordance with subsection 6A(2) or 6B(2), the retired Judge is entitled to receive a pension accordingly.

16 Subsection 6(2C)

Repeal the subsection.

17 Subsection 6(2D)

Omit all words after "pension", substitute "in accordance with subsection 6A(4) or 6B(2)".

18 Subsection 6(3)

Repeal the subsection

19 After section 6

Insert:

6A Rate of pension--Judge's surcharge debt amount not in debit (1) This section applies to a Judge if the Judges surcharge debt account is not in debit when a pension becomes payable to him or her.

Note: For surcharge debt account see subsection 4(1).

Note: For appropriate current judicial salary see subsection 4(1).

where:

A means 60% of the appropriate current judicial salary.

B means:

(a) the sum of the total number of years (including a fraction of a year) of his or her service as a Judge and the total number of years (including a fraction of a year) that the Attorney-General certifies to be the period, or aggregate of the periods, (if any) of leave in respect of that service due to the Judge immediately before his or her retirement; or

(b) 10;

Note: For appropriate current judicial salary see subsection 4(1).

(a) 0.5% of the appropriate current judicial salary for each completed month of his or her service as a Judge; or

(b) 60% of the appropriate current judicial salary;

Note: For appropriate current judicial salary see subsection 4(1).

Note: For surcharge debt account see subsection 4(1).

(a) if the period of his or her service as a Judge does not include a period of exempt service--the rate worked out by using the formula:

(b) if the period of his or her service as a Judge includes a period of exempt service that is less than his or her qualifying period for a pension--the rate worked out by using the formula:

(c) if the period of his or her service as a Judge includes a period of exempt service that is equal to or longer than his or her qualifying period for a pension--a rate equal to BP;

BP (basic pension) is the annual rate of the pension that would be payable to the Judge if his or her surcharge debt account were not in debit when the pension becomes payable.

E means the number of years in the Judge's period of exempt service.

P _t means the amount worked out in accordance with the formula:

P ₁ is the proportion that the rate of the superannuation contributions surcharge that applies to the Judge for the first financial year included in the relevant period in relation to him or her bears to the maximum rate of superannuation contributions surcharge applicable for that financial year, and P ₂ , P ₃ etc. have each a corresponding meaning.

Q means the number of years in the Judge's qualifying period for a pension.

relevant period , in relation to a Judge, means:

(a) if paragraph (b) does not apply--the Judge's period of service as a Judge; or

(b) if the Judge's period of service as a Judge began before 21 August 1996--that part of the period of service that began on that date.

Note: For qualifying period for a pension see subsection 4(3) and for period of exempt service see subsection 4(1).

Add:

19 Surchargeable contributions (1) For the purposes of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 , the surchargeable contributions for a financial year of a Judge is the amount worked out by using the formula:

where:

annual salary means the amount that is the Judge's salary for the financial year.

notional surchargeable contributions factor means the notional surchargeable contributions factor applying to the Judge for that financial year under the regulations.

(2) The regulations may prescribe the notional surchargeable contributions factors that are to apply to a Judge when working out, for the purposes of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 , the Judge's surchargeable contributions.

(3) Subsection (1) has effect despite any provision of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 .

20 Trustee of Scheme for the 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 Secretary to the Department is taken to be the person who manages 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.

(a) in so far as those functions and powers are to be exercised in relation to presidential members of the Australian Industrial Relations Commission--to the Industrial Registrar;

(b) in so far as those functions and powers are to be exercised in relation to the presidential members of the Administrative Appeals Tribunal--to the Registrar of the Tribunal, any officer of the Tribunal or any member of the staff of the Tribunal;

(c) in any other case--to any person holding, or performing the duties of, a Senior Executive Service office in the Department.

21 Regulations The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

The amendments made by this Schedule do not apply in respect of a Justice or Judge of a federal court appointed before the commencement of this Schedule.