Document ID: chunk:federal_register_of_legislation:F2005B01230:body:0:p4
Version: federal_register_of_legislation:F2005B01230
Segment Type: other
Provision Reference: 
Character Range: 8377–11315

Person was a pensioner; and

              (b) the Deceased Person is survived by a spouse; and

              (c) the spouse is entitled to a pension; and

              (d) an assessment is made of the surcharge on the Deceased Person's surchargeable contributions for a financial year; and

              (e) the spouse becomes liable to pay the surcharge under the assessment in accordance with paragraph 10(4)(ca) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997;

     the spouse may, within:

              (f) three months after the assessment was made; or

              (g) such longer period as the Board allows;

     give the Board a written notice electing to commute the whole or a part of that pension to a lump sum benefit equal to the amount specified in the election.

     15.2.2 An election must be accompanied by:

              (a) a written notice requesting that the amount of the lump sum benefit be:

                   (i) paid to the Commissioner of Taxation; and

                   (ii) wholly applied in payment of surcharge under the assessment; and

              (b) a copy of the notice of assessment.

 Surcharge Commutation Amount

     15.2.3 The amount specified in an election in relation to a particular pension:

              (a) must be equal to or less than the amount of the surcharge under the assessment; and

              (b) must not have the effect of reducing the pension below zero; and

              (c) is to be known as the Surcharge Commutation Amount for the purposes of this Division.

 Entitlement to lump sum benefit

     15.2.4 If a spouse makes an election under Rule 15.2.1 in relation to a pension, the spouse is entitled to a lump sum benefit equal to the Surcharge Commutation Amount.

     15.2.5 If a spouse is entitled to a lump sum benefit under Rule 15.2.4, the liability to pay that benefit must be discharged by:

              (a) paying the amount of that benefit to the Commissioner of Taxation in accordance with the spouse's request; and

              (b) informing the Commissioner of Taxation of the spouse's request that the amount be wholly applied in payment of surcharge under the assessment concerned.

 Reduction of pension

     15.2.6 If a spouse makes an election under Rule 15.2.1 in relation to a pension, the annual rate of the pension is to be reduced in accordance with the method determined by the Board under Rule 15.2.10.  The reduction takes effect from the beginning of the day of the election.

 One election per assessment

     15.2.7 A spouse is not entitled to make more than one election under Rule 15.2.1 in relation to a particular assessment.

 Elections made before the first pension payday in a financial year

     15.2.8 If an election under Rule 15.2.1 is made during the period:

              (a) beginning at the start of a financial year; and

              (b) ending at the end of