"maximum surcharge percentage" means:

(a) for the 2003-2004 financial year—14.5%; and
(b) for the 2004-2005 financial year—12.5%; and
(c) for the 2005-2006 financial year and later financial years—10%.

Part 2—Amendments related to reduction of the surcharge cap

Defence Force Retirement and Death Benefits Act 1973

4 Paragraphs 6C(3)(c) and (d)

Repeal the paragraphs, substitute:

(c) 12.5% of the employer-financed component of any part of the benefits payable to the member that accrued in the 2004-2005 financial year;
(d) 10% of the employer-financed component of any part of the benefits payable to the member that accrued after 30 June 2005.

Parliamentary Contributory Superannuation Act 1948

5 Paragraphs 4E(3)(c) and (d)

Repeal the paragraphs, substitute:

(c) 12.5% of the employer-financed component of any part of the benefits payable to the person that accrued in the 2004-2005 financial year;
(d) 10% of the employer-financed component of any part of the benefits payable to the person that accrued after 30 June 2005.

Superannuation Act 1976

6 Paragraphs 80A(3)(c) and (d)

Repeal the paragraphs, substitute:

(c) 12.5% of the employer-financed component of any part of the benefits payable to the person that accrued in the 2004-2005 financial year;
(d) 10% of the employer-financed component of any part of the benefits payable to the person that accrued after 30 June 2005.

Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

7 Paragraphs 4(2A)(c) and (d)

Repeal the paragraphs, substitute:

(c) 12.5% of the employer-financed component of any part of the benefits payable to the member that accrued in the 2004-2005 financial year;
(d) 10% of the employer-financed component of any part of the benefits payable to the member that accrued after 30 June 2005.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

8 Subparagraphs 15(6)(b)(iii) and (iv)

Repeal the subparagraphs, substitute:

(iii) 12.5% of the employer-financed component of any part of the benefits payable to the member that accrued in the 2004-2005 financial year;
(iv) 10% of the employer-financed component of any part of the benefits payable to the member that accrued after 30 June 2005.
9 Subparagraphs 15(6AA)(d)(iii) and (iv)

Repeal the subparagraphs, substitute:

(iii) 12.5% of the employer-financed component of any part of the benefits that would have been payable to the member but for the payment split and that accrued in the 2004-2005 financial year;
(iv) 10% of the employer-financed component of any part of the benefits that would have been payable to the member but for the payment split and that accrued after 30 June 2005.
10 Subparagraphs 15(6A)(b)(iii) and (iv)

Repeal the subparagraphs, substitute:

(iii) 12.5% of the employer-financed component of any part of the value of the age retirement benefits of the member when the fund ceased to be a constitutionally protected superannuation fund that accrued in the 2004-2005 financial year;
(iv) 10% of the employer-financed component of any part of the value of the age retirement benefits of the member when the fund ceased to be a constitutionally protected superannuation fund that accrued after 30 June 2005.

Part 3—Application
11 Application of amendments

(1) The amendments made by Part 1 of this Schedule apply in relation to liability to surcharge in respect of the 2004-05 financial year and later financial years.
(2) The amendments made by items 4 to 9 of this Schedule apply in relation to benefits that become payable on or after 1 July 2004.
(3) The amendment made by item 10 of this Schedule applies in relation to superannuation funds that cease to be constitutionally protected superannuation funds on or after 1 July 2004.