Document ID: chunk:federal_register_of_legislation:C2004A01320:clause:1_11
Version: federal_register_of_legislation:C2004A01320
Segment Type: clause
Provision Reference: sch 1 cl 11
Character Range: 14251–15631

11  Provisions applying instead of subsection 18(8AC)

 (1) Subsection 18(8AC) does not apply in relation to the preserved basic allowance. Instead, subclauses (2) and (3) of this clause apply.

 (2) If the person makes an election under subsection 18A(1) on a particular day (the election day) after the end of a new scheme contribution period of the person (the most recent contribution period) then, from the election day until another (if any) new scheme contribution period of the person starts, clause 4 applies as if the reference in subclause 4(2) to the preserved basic percentage were instead a reference to the percentage worked out under subclause (3) of this clause.

 (3) The percentage is worked out using the formula:
where:

basic rate means the rate at which, after the end of the most recent contribution period, the preserved basic allowance would have been payable to the person if subclause (2) of this clause and subclause 9(2) did not apply to the person.

percentage means the preserved basic percentage determined in accordance with subclause 4(5).

surcharge adjustment means the sum of the following:
 (a) the person's notional adjustment debit (if any) arising under subclause 10(2) at the end of the most recent contribution period;
 (b) the person's notional adjustment debit arising under subsection 18A(6) because of the making of the election.