Document ID: chunk:federal_register_of_legislation:F2022C00514:schedule:12:p1
Version: federal_register_of_legislation:F2022C00514
Segment Type: schedule
Provision Reference: sch 12 (pt 1/11)
Character Range: 272766–275608

Schedule 12—Surcharge deduction amount
(Schedule 1, definition of surcharge deduction amount)

 1. If a member's surcharge debt account, or a deceased member's surcharge debt account, is in debit when benefits become payable to or in respect of the member, CSC must determine, in writing:
 (a) the surcharge deduction amount that, in its opinion, it would be fair and reasonable to take into account in working out the amount of the benefits; and
 (b) if the benefits have been converted into a pension—the conversion factor for working out the yearly amount that would have to be paid to discharge a liability equal to the surcharge deduction amount.
 2. In making the determination, CSC must have regard to the following:
 (a) the amount by which the member's surcharge debt account is in debit when those benefits become payable;
 (b) the value of the employer‑financed component of those benefits;
 (c) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997) the notional surchargeable contributions factors applicable to the member, were assumed to be likely to be payable to the member on his or her retirement;
 (d) whether the member has or had qualified for his or her maximum benefit entitlement under the Rules;
 (e) any other matter that CSC considers relevant.
 3. The amount determined by CSC for paragraph 1(a) may not be more than the total of the following amounts:
 (a) 15% of the employer‑financed component of any part of the benefits payable to the member that accrued between 20 August 1996 and 1 July 2003;
 (b) 14.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the 2003–2004 financial year;
 (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.
 4. In making a determination for paragraph 1 (b), CSC must also have regard to:
 (a) written advice about the conversion factor, prepared by an actuary; and
 (b) the person's age when the benefit becomes payable to the person.
Note: A surcharge deduction amount is not subject to a family law superannuation payment split under Part 13.

Endnotes

Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history

Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about