Document ID: chunk:federal_register_of_legislation:C2004A00865:clause:2_146e:p2
Version: federal_register_of_legislation:C2004A00865
Segment Type: clause
Provision Reference: sch 2 cl 146E (pt 2/3)
Character Range: 33421–35752

(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 elections set out in a notice under paragraph (1)(h) must be equal to or less than the amount of the surcharge under the assessment.

Entitlement to lump sum benefit
 (5) If a spouse makes an election under subsection (1) in relation to a pension, the spouse is entitled to a lump sum benefit equal to the surcharge commutation amount.
 (6) If a spouse is entitled to a lump sum benefit under subsection (5), 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
 (7) If a spouse makes an election under subsection (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 section 146F. The reduction takes effect from the beginning of the day of the election.

One election per assessment
 (8) A spouse is not entitled to make more than one election under subsection (1) in relation to a particular assessment unless the elections:
 (a) relate to different pensions; and
 (b) are made on a single occasion; and
 (c) are set out in the same notice under paragraph (1)(h).

Elections made before the first pension pay day in a financial year
 (9) If an election under subsection (1) is made during the period:
 (a) beginning at the start of a financial year; and
 (b) ending at the end of the first pension pay day in that year;
this section has effect as if the election had been made on the first day after that pension pay day.

Part of spouse's pension
 (10) To avoid doubt, if subsection 109AB(9) or 110(12) applies to an election under subsection (1) of this section, this section has effect, in relation to the election, as if a reference to the spouse's pension were a reference to the part of the spouse's pension concerned.