Document ID: chunk:federal_register_of_legislation:F2024C00321:reg:55:p68
Version: federal_register_of_legislation:F2024C00321
Segment Type: reg
Provision Reference: reg 55 (pt 68/83)
Character Range: 575186–577907

1 July;
this Division has effect as if the election had been made on the first day after that pension payday.

Part of pension
15.2.9 To avoid doubt, if a pension is apportioned under Division 4 of Part 9, this Division has effect, in relation to the portion applicable to a particular spouse, as if a reference to the pension were a reference to that portion.

Method for reduction of spouse's pension in relation to Surcharge Commutation Amount
15.2.10 CSC must, following consultation with an actuary, determine in writing, in relation to persons who are receiving a spouse's pension, the method that, having regard to:
    (a) a person's age when he or she makes an election under Rule 15.2.1; and
    (b) other relevant factors (if any);
is applicable for the purpose of working out, in relation to the person, the yearly amount that would have to be paid to discharge a liability equal to the person's Surcharge Commutation Amount.

Division 3

Election
15.3.1 If:
    (a) a person (the Deceased Person) dies; and
    (b) either:
             (i) the Deceased Person is not survived by a spouse but is survived by a child or children of the Deceased Person; or
             (ii) the Deceased Person is survived by a spouse, the spouse dies, and the spouse is survived by a child or children of the deceased person; and
    (c) a pension is payable in respect of the child or children; and
         (d) an assessment is made of the surcharge on the Deceased Person's surchargeable contributions for a financial year; and
         (e) the person to whom the pension is payable (the Eligible Person) (who may be the child or one of the children) 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 Eligible Person may, within:
    (f) three months after the assessment was made; or
    (g) such longer period as CSC allows;
give CSC 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.
15.3.2 The 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
15.3.3 The amount specified in the election:
         (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