Document ID: chunk:federal_register_of_legislation:C2004A01320:clause:2_1g
Version: federal_register_of_legislation:C2004A01320
Segment Type: clause
Provision Reference: sch 2 cl 1G
Character Range: 24660–26674

1G  Effect of an election

 (1) If the member makes an election in accordance with clauses 1C, 1D and 1E, then this clause has effect in relation to each month during the period when the election is in force.

 (2) Subject to subclauses (3) and (5), the amount (the basic amount) of parliamentary allowance to which the member would otherwise be entitled in respect of a month is reduced (but not below zero) by whichever of the following amounts (the reduction amount) is applicable:
 (a) if the specified salary sacrifice is a percentage—the amount that is that percentage of the basic amount;
 (b) if the specified salary sacrifice is an amount—that amount.

 (3) If the reduction amount for a month is greater than the amount (the maximum reduction) that is 50% of the sum of:
 (a) the basic amount; and
 (b) the amount (if any) of salary to which the member is entitled because he or she was a Minister of State for some or all of the month; and
 (c) the amount (if any) of allowance by way of salary to which the member is entitled because he or she was an office holder for some or all of the month;
the basic amount for the month is instead reduced by the maximum reduction.

 (4) Subject to subclause (5), the Commonwealth must, in respect of each month, make a contribution to the additional contributions fund, in respect of the member, of an amount equal to the amount by which the basic amount for the month is reduced under subclause (2) or (3).

 (5) If either:
 (a) the additional contributions fund:
 (i) ceases to exist; or
 (ii) ceases to accept the additional contributions; or
 (iii) ceases to be a complying superannuation fund or an RSA; or
 (iv) becomes a self managed superannuation fund; or
 (b) the member dies;
before the Commonwealth makes a contribution as required by subclause (4) in respect of a month, then:
 (c) no reduction under subclause (2) or (3) is to be made in respect of that month; and
 (d) no contribution under subclause (4) is to be made in respect of that month.