Document ID: chunk:federal_register_of_legislation:C2004A00865:clause:2_146c:p1
Version: federal_register_of_legislation:C2004A00865
Segment Type: clause
Provision Reference: sch 2 cl 146C (pt 1/2)
Character Range: 24688–27316

146C  Commutation of former eligible employee's pension—payment of surcharge liability

Election
 (1) If:
 (a) a person is receiving (whether or not by virtue of section 136):
 (i) a standard age retirement pension; or
 (ii) a standard early retirement pension; or
 (iii) an invalidity pension; or
 (iv) an additional age retirement pension; or
 (v) an additional early retirement pension; 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 3 months after the assessment was made, give the Board:
 (d) if the person is receiving only one such 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
 (e) if the person is receiving 2 such pensions and wishes to make an election under this subsection in relation to only one of those 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
 (f) if the person is receiving 2 such pensions and wishes to make an election under this subsection in relation to both of those pensions—a written notice:
 (i) identifying one of these 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 relation to the pension for the purposes of this section.
 (4) The sum of the amounts specified in the