Defence Force (Superannuation) (Productivity Benefit) Determination (Amendment) (No. 2 of 1998) (Cth)

Commonwealth of Australia

Defence Act 1903

Defence Force (Superannuation) (Productivity Benefit) Determination (Amendment) (No. 2 of 1998)

I, BRONWYN KATHLEEN BISHOP, Minister for Defence Industry, Science and Personnel, make this Determination under section 52 of the Defence Act 1903.

Dated 24^th April 1998.

Bronwyn Bishop

Minister for Defence Industry, Science and Personnel

1.   Commencement

1.1   This Determination commences on gazettal.

2.   Amendment

2.1   The Defence Force (Superannuation) (Productivity Benefit) Determination is amended as set out in this Determination.

3.   Clause 3 (Interpretation)

3.1   Subclause 3 (1):

Insert the following definitions:

“‘Authority’ means the Defence Force Retirement and Death Benefits Authority established under the DFRDB Act 1973;

‘surcharge debt account’, for a member, means the surcharge debt account kept for the member by the Authority under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997;

‘surcharge deduction amount’, in relation to a member to or in respect of whom benefits become payable under this Determination, means the surcharge deduction amount that is specified in the determination made by the Authority, under clause 3A, in relation to the member.”.

4.   New clause 3A

4.1   After clause 3, insert:

Surcharge deduction amount

“3A.   (1)    If:

(a)   benefits become payable to or in respect of a member; and

(b)   the member’s surcharge debt account is in debit when those benefits became so payable;

the Authority must determine in writing the surcharge deduction amount that, in its opinion, it would be fair and reasonable to take into account in working out the amount of those benefits.

“(2)   In making the determination, the Authority must have regard to the following:

(a)   the amount by which the member’s surcharge debt account is in debit when those benefits become payable;

(b)   the value of the employer-financed component of those benefits;

(c)   the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997) the notional surchargeable contributions factors applicable to the member, were assumed to be likely to be payable to the member on his or her retirement;

(d)   whether the member has or had qualified for his or her maximum benefit entitlement under the DFRDB Act 1973;

(e)   any other matter that the Authority considers relevant.

“(3)   The amount determined by the Authority may not be more than 15% of the employer-financed component of that part of the benefits payable to the member that accrued after 20 August 1996.”.

5.   Clause 8B (Amount payable)

5.1   Add at the end:

“(2)   However, a benefit payable under clause 8AA is reduced by the surcharge deduction amount if no election has been made under section 124 of the DFRDB Act 1973.”.