South Australian Numbered Acts

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STATUTES AMENDMENT (SUPERANNUATION) ACT 2014 (NO 18 OF 2014) - SECT 12

12—Insertion of section 40AB

After section 40A insert:

40AB—Commutation to pay Division 293 tax

        (1)         The purpose of this section is to facilitate the payment of amounts by the Board to the Commissioner of Taxation as required under Schedule 1 Subdivision 135-C of the Taxation Administration Act in connection with Division 293 tax payable by contributors.

        (2)         If a Division 293 release authority for a contributor who is entitled to a pension is given to the Board in accordance with Schedule 1 Subdivision 135-B of the Taxation Administration Act, the Board must—

            (a)         commute so much of the contributor's pension as is necessary to provide a lump sum equal to the release amount required to be paid by the Board in respect of the contributor under Schedule 1 section 135-75 of the Taxation Administration Act; and

            (b)         pay the lump sum resulting from the commutation to the Commissioner of Taxation.

        (3)         The commutation factors to be applied in the commutation of a pension under this section will be determined by the Treasurer on the recommendation of an actuary.

        (4)         If the Board is satisfied that—

            (a)         a contributor is entitled to commute the whole of his or her pension under section 40 and has done so except for a part that the contributor wishes to retain for the purpose of commutation under this section in order to meet the contributor's liability for Division 293 tax; and

            (b)         after commutation under this section for that purpose there will still be a part of the pension remaining uncommuted; and

            (c)         the part of the pension originally retained for commutation under this section was a reasonable estimate of the amount of the pension that would be required for that purpose,

the Board will, on the application of the contributor made after a Division 293 release authority for the contributor is given to the Board, commute the remaining uncommuted part of the pension using the factors applicable under section 40.



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