Document ID: chunk:federal_register_of_legislation:C2024C00651:clause:1_9
Version: federal_register_of_legislation:C2024C00651
Segment Type: clause
Provision Reference: sch 1 cl 9
Character Range: 224947–226170

9  Provisions applying instead of subsection 18(8A)
 (1) Subsection 18(8A) does not apply in relation to the preserved basic allowance. Instead, subclauses (2) and (3) of this clause apply.
 (2) If the person's surcharge debt account is in debit at the end of a new scheme contribution period (the most recent contribution period) of the person, then, until whichever (if any) of the following happens first:
 (a) another new scheme contribution period of the persons starts;
 (b) the person makes an election under subsection 18A(1);
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) did not apply to the person.
percentage means the preserved basic percentage determined in accordance with subclause 4(5).
surcharge adjustment means the person's notional adjustment debit arising under subclause 10(2) at the end of the most recent contribution period.