Document ID: chunk:federal_register_of_legislation:C2022C00264:clause:11_146e:p1
Version: federal_register_of_legislation:C2022C00264
Segment Type: clause
Provision Reference: sch 11 cl 146E (pt 1/3)
Character Range: 599019–601652

146E  Commutation of spouse's pension—payment of surcharge liability

Election
 (1) If:
 (a) a person (the deceased person) dies and:
 (i) the deceased person was an eligible employee; or
 (ii) the deceased person was a pensioner to whom age retirement pension, early retirement pension or invalidity pension was payable; and
 (b) the deceased person is survived by a spouse; and
 (c) the spouse is receiving one or more spouse's pensions (whether or not by virtue of section 136); 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 3 months after the assessment was made, give CSC:
 (f) if the spouse is receiving only one spouse's pension—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 in relation to the pension; or
 (g) if the spouse is receiving 2 spouse's pensions and wishes to make an election under this subsection in relation to only one of these pensions—a written notice:
 (i) identifying that pension; and
 (ii) electing to commute the whole or a part of that pension to a lump sum benefit equal to the amount specified in the election in relation to the pension; or
 (h) if the spouse is receiving 2 spouse's pensions and wishes to make an election under this subsection in relation to both of those pensions—a written notice:
 (i) identifying one of those pensions as the first pension to be commuted; and
 (ii) electing to commute all of the first pension to a lump sum benefit equal to the amount specified in the election in relation to the first pension; and
 (iii) electing to commute the whole or a part of the other pension to a lump sum benefit equal to the amount specified in the election in relation to the other pension.
 (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
 (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 in