Commonwealth Numbered Acts Commonwealth Numbered Acts
1 After Division 4 of Part V
Insert:
Division 4A -- Early release of benefits
(1) In this Division:
"available early release amount" , in relation to a person at a particular time, means the difference between the person's early release amount at that time and the person's early release deduction amount at that time.
"compassionate ground" has the same meaning as in regulation 6.01 of the Superannuation Industry (Supervision) Regulations 1994 .
"deferred benefit member" means a person, who has ceased to be an eligible employee, to or in respect of whom a deferred benefit has not been paid.
"early release amount" , in relation to a person at a particular time, means the sum of the following amounts:
(a) the person's accumulated basic contributions;
(b) the person's accumulated supplementary contributions;
(c) the person's accumulated employer contributions (disregarding any amounts mentioned in paragraphs 110Q(1)(c) and (d));
(d) the amount (if any) payable in respect of the person under section 110SN;
(e) the amount of the benefit payable to the person under Subdivision B of Division 2 of Part IX.
Note: This definition is affected by subsection (2).
"early release deduction amount" , in relation to a person at a particular time, means the total of the following:
(a) the amount of each early release lump sum previously paid to or for the benefit of the person;
(b) interest on the amount of each such early release lump sum for the period beginning at the time the early release lump sum is paid and ending at the particular time.
"early release lump sum" has the meaning given by section 79B.
"severe financial hardship" has the same meaning as in regulation 6.01 of the Superannuation Industry (Supervision) Regulations 1994 .
(2) For the purposes of the definition of early release amount , work out the sum of the amounts referred to in that definition:
(a) in the case of an eligible employee--as if the person ceased to be an eligible employee at that time; or
(b) in the case of a deferred benefit member--as if the person ceased to be a deferred benefit member at that time; or
(c) in the case of a person who has made an election under section 110T--as if the person's benefit became payable at that time.
Note: The components that make up a person's early release amount might be reduced if the Board has received, under Part IXB (family law superannuation splitting), a splitting agreement or splitting order in relation to the person's superannuation interest.
(1) For the purposes of the Superannuation Industry (Supervision) Regulations 1994 , a lump sum (the early release lump sum ) may be paid, on the grounds of severe financial hardship or on compassionate grounds, in accordance with those regulations, to or for the benefit of the following persons:
(a) an eligible employee;
(b) a deferred benefit member;
(c) a person who has made an election under section 110T (postponement of benefits).
Note: The components that make up the person's early release amount are not reduced when an early release lump sum is paid. However, when a benefit to which the person is entitled under this Act becomes payable to the person, the amount of the benefit is reduced to reflect any previous early release lump sums paid to or for the benefit of the person (see section 79D).
(2) To avoid doubt, more than one early release lump sum can be paid to or for the benefit of a person.
79C Requirements relating to early release of benefits
(1) In addition to any requirements in the Superannuation Industry (Supervision) Regulations 1994 , the amount of an early release lump sum paid to or for the benefit of a person at a particular time must not exceed the person's available early release amount at that time.
Payment to be made to or for the benefit of a person
(2) Despite section 112 of this Act (payments from the Consolidated Revenue Fund), an early release lump sum that is payable to or for the benefit of a person must be paid out of the Superannuation Fund to or for the benefit of the person.
Benefit does not become payable
(3) For the purposes of this Act, merely because an early release lump sum becomes payable to or for the benefit of a person does not mean a benefit to which the person is entitled under this Act becomes payable.
79D Calculation of benefits after payment of early release lump sums
(1) This section applies if:
(a) an early release lump sum is paid to or for the benefit of a person; and
(b) a benefit to which the person is entitled under this Act becomes payable to the person at a particular time.
(2) The amount of the benefit to which the person is entitled to be paid at that time must be reduced to reflect the person's early release deduction amount at that time. However, the method of working out the amount of the reduction is to be determined by the Board.
2 At the end of subsection 112(2)
Add:
Note: An early release lump sum is paid to or for the benefit of the person out of the Superannuation Fund (instead of the Consolidated Revenue Fund) (see subsection 79C(2)).
3 At the end of section 112
Add:
(10D) To avoid doubt, if an early release lump sum (within the meaning of section 79A) has been paid to or for the benefit of a person, then the amount payable out of the Superannuation Fund to the Commonwealth under this section is reduced by the person's early release deduction amount (within the meaning of that section) at that time.