Document ID: chunk:federal_register_of_legislation:F2005B01230:body:0:p2
Version: federal_register_of_legislation:F2005B01230
Segment Type: other
Provision Reference: 
Character Range: 2779–5867

Tax (Assessment and Collection) Act 1997) that are attributable to the operation of these Rules."

     2.3                   The following Rule is inserted after Rule 9.4.2:

     "9.4.3 When apportioning a reversionary pension under Rule 9.4.1, or re-apportioning a reversionary pension under Rule 9.4.2, the Board must:

              (a) disregard any reduction in pension that results from an election under Rules 15.2.1 or 15.3.1; and

              (b) not apportion, or re-apportion, among other beneficiaries so much of any pension that is commuted under Part 15 of the Rules."

     2.4                   The following Rule is inserted after Rule 12.1.5:

     "

 Cancelling a commutation election

     12.1.6 If:

              (a) a person makes an election under Rules 15.1.1, 15.2.1 or 15.3.1; and

              (b) no payment has been made in accordance with the election; and

              (c) the Board is satisfied that the election should be cancelled;

     the Board may direct that the election is to be cancelled and, if it so directs, these Rules have effect as if the election had not been made."

     2.5                   The following Part is inserted after Part 14:

     "
PART 15 – commutation of pension:
payment of surcharge liability

Commutation of former member's pension

Division 1

 Election

     15.1.1 If:

              (a) a person is a pensioner; and:

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

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

     the person may, within:

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

              (e) such longer period as the Board allows;

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

     15.1.2 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

     15.1.3 The amount specified in the election:

              (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

     15.1.4 If a person makes an election under Rule 15.1.1 in relation to a pension, the person is entitled to a lump sum benefit equal to the Surcharge Commutation Amount.

     15.1.5 If a person is entitled to a lump sum benefit under Rule 15.1.4,