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 Department of Finance and Administration 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.

             (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.