South Australian Repealed Acts

This legislation has been repealed.

SOUTHERN STATE SUPERANNUATION ACT 1994 - SECT 35AA

35AA—Commutation to pay deferred superannuation contributions surcharge—member

        (1)         A member who is liable for a deferred superannuation contributions surcharge as a result of a benefit becoming payable to the member may apply to the Board, in accordance with this section—

            (a)         to receive part of the benefit in the form of a commutable pension; and

            (b)         to fully commute the pension.

        (2)         A member who has become entitled to a benefit, or will shortly become entitled to a benefit, may—

            (a)         estimate the amount of the surcharge the member will become liable to pay (the "estimated surcharge amount"); and

            (b)         request the Board, in the approved form, to—

                  (i)         withhold from the member's benefit an amount equal to the estimated surcharge amount (the "withheld amount"); and

                  (ii)         pay the balance of the benefit to the member (being, in the case of a benefit to which the member is yet to become entitled, a payment after the entitlement arises),

and the Board must, subject to subsection (4), comply with the member's request.

        (3)         If a member has made a request under subsection (2)(b), the member must, before the expiration of 2 months following the issue of a surcharge notice in respect of the member, advise the Board in the approved form that the notice has been issued and the Board must, within 7 days of receiving that advice—

            (a)         convert into a pension—

                  (i)         if the amount of the surcharge payable by the member is less than the withheld amount—a portion of the withheld amount equal to the amount payable; or

                  (ii)         in any other case—the whole of the withheld amount; and

            (b)         immediately after converting the withheld amount, or a portion of the withheld amount, into a pension under paragraph (a)—commute the pension; and

            (c)         pay to the member—

                  (i)         the lump sum resulting from the commutation of the pension; and

                  (ii)         the balance (if any) of the withheld amount.

        (3a)         If a member who has become entitled to a benefit but has not yet received a surcharge notice provides the Board with satisfactory evidence of the amount of the surcharge he or she will become liable to pay (the "surcharge amount ) and requests the Board, in the approved form, to apply, or facilitate the application of, an amount of the member's benefit in payment of the surcharge, the Board must, within 7 days of the request—

            (a)         convert into a pension an amount of the member's benefit that is equal to the surcharge amount; and

            (b)         immediately after converting the amount into a pension under paragraph (a)—commute the pension; and

            (c)         pay the lump sum resulting from the commutation to the member or the Commissioner of Taxation (at the option of the member); and

            (d)         following payment under paragraph (c)—reduce the member's remaining benefits by an amount equal to the surcharge amount.

        (4)         The Board may reject an application under subsection (1) if—

            (a)         it is not satisfied that, if the application were accepted, the resulting lump sum will be applied in payment of the surcharge; or

            (b)         the member fails to satisfy the Board that the member has, or will have, a surcharge liability to the Commissioner of Taxation.

        (5)         The factors to be applied in—

            (a)         the conversion of a withheld amount (or part of a withheld amount) into a pension; and

            (b)         the commutation of a pension,

will be determined by the Treasurer on the recommendation of an actuary.