Document ID: chunk:federal_register_of_legislation:F2024C00321:reg:55:p67
Version: federal_register_of_legislation:F2024C00321
Segment Type: reg
Provision Reference: reg 55 (pt 67/83)
Character Range: 572723–575396

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 spouse 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.

15.2.2 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

15.2.3 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 for the purposes of this Division.

Entitlement to lump sum benefit
15.2.4 If a spouse makes an election under Rule 15.2.1 in relation to a pension, the spouse is entitled to a lump sum benefit equal to the Surcharge Commutation Amount.
15.2.5 If a spouse is entitled to a lump sum benefit under Rule 15.2.4, 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
15.2.6 If a spouse makes an election under Rule 15.2.1 in relation to a pension, the annual rate of the pension is to be reduced in accordance with the method determined by CSC under Rule 15.2.10.  The reduction takes effect from the beginning of the day of the election.

One election per assessment
15.2.7 A spouse is not entitled to make more than one election under Rule 15.2.1 in relation to a particular assessment.

Elections made before the first pension payday in a financial year
15.2.8 If an election under Rule 15.2.1 is made during the period:
    (a) beginning on 1 January or 1 July in a year; and
    (b) ending at the end of the first pension payday after that 1 January or 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