Document ID: chunk:federal_register_of_legislation:F2022C00514:reg:81a
Version: federal_register_of_legislation:F2022C00514
Segment Type: reg
Provision Reference: reg 81A
Character Range: 160331–161949

81A  Reduction of benefits—debt account discharge liability
 (1) This rule applies in relation to a member if:
 (a) the Commissioner of Taxation has given the member a release authority in respect of a debt account discharge liability; and
 (b) the CSC has been given the release authority; and
 (c) the employer benefit has not yet been paid.
Note 1: A release authority relates to the assessment of an amount of Division 293 tax (within the meaning of Division 293 of the Income Tax Assessment Act 1997). Section 293‑5 of that Act describes persons who are liable to pay Division 293 tax as very high income individuals.
Note 2: The CSC may be given the release authority by the member or by the Commissioner of Taxation.
 (2) The CSC must, as soon as practicable:
 (a) pay the debt account discharge liability set out in the release authority; and
 (b) ensure that the employer benefit is reduced by the amount of the liability paid.
 (3) For subrule (2):
 (a) if the employer benefit is to be paid as a whole or part pension, the CSC may determine the amount by which the pension will be reduced; and
 (b) the CSC must ensure that the reduction of the amount of the pension, by the amount of the liability paid, occurs:
 (i) after the amount of the employer benefit is reduced by the surcharge deduction amount (if any); and
 (ii) after the amount of the employer benefit is reduced in accordance with a payment split (if any).
 (4) The application of these Rules in relation to a member and a benefit is taken to be modified to the extent (if any) necessary to ensure that subrules (2) and (3) are given effect.