Untitled document

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2

PART 2—AMENDMENT OF EMERGENCY SERVICES

SUPERANNUATION ACT 1986 3

3.	Definitions	3
4.	Beneficiaries Accounts	4
5.	Review by VCAT	5
6.	New sections 25B and 25C inserted	6

25B.	Surcharge debt account	6
25C.	Commutation of pension to meet surcharge liability	9

PART 3—AMENDMENT OF GOVERNMENT

SUPERANNUATION ACT 1999 11

7.	Statute law revision	11
8.	MTA Superannuation Fund	11

PART 4—AMENDMENT OF PARLIAMENTARY SALARIES

AND SUPERANNUATION ACT 1968 12

9.	Amendment of section 6	12
10.	Definitions	12
11.	New sections 24D and 24E inserted	13

24D.	Surcharge debt account	13
24E.	Commutation of pension to meet surcharge liability	16

PART 5—AMENDMENT OF STATE EMPLOYEES

RETIREMENT BENEFITS ACT 1979 18

12.	Definitions	18
13.	New sections 74CA–74CC inserted	19
74CA. Surcharge debt account	19
74CB. Recovery of surcharge where person entitled to deferred

benefit 22

i

Section Page

74CC. Commutation of pension to meet surcharge liability 22

PART 6—AMENDMENT OF STATE SUPERANNUATION ACT

1988   25

14.	Definitions	25
15.	New sections 71C–71E inserted	26

71C.	Surcharge debt account	26
71D.	Recovery of surcharge where person entitled to deferred
benefit	29
71E.	Commutation of pension to meet surcharge liability	29

PART 7—AMENDMENT OF SUPERANNUATION

(PORTABILITY) ACT 1989 32

16. New section 9A 32

9A. Surcharge payments 32

PART 8—AMENDMENT OF TRANSPORT SUPERANNUATION

ACT 1988 33

17.	Definitions	33
18.	New sections 44CA–CC inserted	34
44CA. Surcharge debt account	34
44CB. Recovery of surcharge where person entitled to deferred

benefit	37
44CC. Commutation of pension to meet surcharge liability	38

═══════════════

NOTES 40

ii

Victoria

No. 29 of 2000

Superannuation Acts (Amendment) Act

2000†

[Assented to 30 May 2000]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to—

(a)

insert provisions relating to the specified Superannuation Acts; and

(b) make miscellaneous amendments to
specified Superannuation Acts.

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 2

2. Commencement

(1) This Act, except section 9, comes into operation on the day after the day on which it receives the Royal Assent.

(2) Section 9(1) is deemed to have come into

operation on 14 December 1999.

(3) Section 9(2) comes into operation on the day on which sections 11 and 12 of the Parliamentary Committees (Amendment) Act 1999 come into operation.

_______________
Superannuation Acts (Amendment) Act 2000

s. 3 Act No. 29/2000

PART 2—AMENDMENT OF EMERGENCY SERVICES

SUPERANNUATION ACT 1986

3. Definitions

(1) In section 3 of the Emergency Services

Superannuation Act 1986, in the definition of "current equivalent of salary on termination of service" after "means the salary" insert "(in

accordance with section 4(1E)(f))".

(2) In section 3 of the Emergency Services

Superannuation Act 1986, insert the following
definitions—
' "surchargeable contributions" means the

surchargeable contributions of a contributor for a particular financial year worked out in accordance with section 8 of the

Commonwealth Superannuation Collection) Act 1997 and any regulations made under that section that apply in respect of that particular financial year;

"surcharge debt account" means, in relation to a

the Scheme or member of the ESSPLAN

person who is or has been a contributor to that person (while he or she was a contributor to the Scheme or member of the ESSPLAN Scheme) under section 25B;

"surcharge deduction amount" means, in relation to a person—

(a) who is or has been a contributor; and

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 4

(b) to or in respect of whom benefits become payable under this Act—

the surcharge deduction amount that is person;'.

specified in a determination made by the

4. Beneficiaries Accounts

(1) For section 21J(3) of the Emergency Services

Superannuation Act 1986 substitute—
"(3) The balance or any part of a beneficiary

account established under sub-section (1) is

payable—

(a)	to the beneficiary on the request of the beneficiary, in a form approved by the Board and in accordance with section 21K(3); or
(b)	in the case of the death of the beneficiary, to such one or more of the beneficiary's dependants and legal personal representatives and in such proportions of the whole of the balance as the Board in its absolute discretion determines.".

(2) For section 21J(5) of the Emergency Services

Superannuation Act 1986 substitute—
"(5) The balance of a beneficiary account

established under sub-section (4) is

payable—

(a)	to the beneficiary on the request of the beneficiary, in a form approved by the Board and in accordance with section 21K(3); or
(b)	in the case of the death of the beneficiary, to such one or more of the

Superannuation Acts (Amendment) Act 2000

s. 5	Act No. 29/2000
beneficiary's dependants and legal personal representatives and in such proportions as the Board in its absolute discretion determines.

(6) The Board must debit to a beneficiary

account any superannuation contributions

tax—

(a)	paid or payable by the Board in respect of contributions in respect of that beneficiary; and
(b)	assessment from the Australian

specified in a notice of surcharge beneficiary ceased to be a contributor.

(7) If the Australian Taxation Office issues an

adjustment to a notice of surcharge
assessment after the Board has debited an
amount of superannuation contributions tax
under sub-section (6), the Board must make
the adjustment to that beneficiary account.

(8) The Board must within 14 days of—

(a)	debiting an amount to a beneficiary account under sub-section (6); or
(b)	making an adjustment to a beneficiary account under sub-section (7)—

advise the beneficiary in writing of the

amount debited or the adjustment.".

5. Review by VCAT

For section 23(6) of the Emergency Services
Superannuation Act 1986 substitute—

"(6) A person whose interests are affected by a

decision of the Board may apply to the
Victorian Civil and Administrative Tribunal
for review of the decision.

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 6

(7) An application for review must be made within 28 days after the later of—

(a)	the day on which the decision is made; or
(b)	if, under the Victorian Civil and Administrative Tribunal Act 1998, the person requests a statement of reasons for the decision, the day on which the statement of reasons is given to the person or the person is informed under section 46(5) of that Act that a statement of reasons will not be given.".

6. New sections 25B and 25C inserted

After section 25A of the Emergency Services

Superannuation Act 1986 insert—

"25B. Surcharge debt account

(1) The Board must establish and maintain a separate surcharge debt account for each contributor to the Scheme or member of the

ESSPLAN Scheme.

(2) The Board must debit to a contributor's or

member's surcharge debt account—

(a) paid or payable by the Board on
contributions in respect of the
contributor or member as a result of the
operation of the Commonwealth
Superannuation Contributions Tax
(Assessment and Collection) Act 1997

any superannuation contributions tax that Act; and

(b) if the contributor's or member's surcharge debt account is in debit at the end of a financial year, interest on the

Superannuation Acts (Amendment) Act 2000

s. 6	Act No. 29/2000
amount by which the account is in debit, calculated at the same rate as the rate determined under section 16 of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and

(c) any debit adjustment to the amount debited under paragraph (a).

(3) The Board must credit to a contributor's or member's surcharge debt account—

(a)	any pre-payment by the contributor or member to the Board in respect of any payment made or to be made by the
Board to discharge or partially discharge the liability imposed under the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and
(b)	any credit adjustment to the amount debited under sub-section (2)(a); and
(c)	any surcharge deduction amount under sub-section (4); and
(d)	an amount to achieve a nil balance after all the debits under sub-section (2) and all the credits under paragraphs (a) to

(c) have been made.

(4) If in respect of a person who has been a

contributor to the Scheme—

(a) imposed under the Commonwealth
Superannuation Contributions Tax

the Board discharges the liability under section 7 of that Act; and

(b) benefits become payable under Part 3 to or in respect of that person; and

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 6

(c) the person's surcharge debt account is in debit when those benefits become so payable—

then, despite anything in any Act or in any would be fair and reasonable having regard to the matters specified in sub-section (5).

trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the

(5) In making the determination, the Board must have regard to the following—

(a)	the amount by which the person's surcharge debt account is in debit when those benefits become payable;
(b)	the value of the employer-financed component of those benefits;
(c)	purpose of working out (under the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997) the surchargeable contributions reported

the value of the benefits that, for the likely to be payable to the person on his or her ceasing to be a contributor to the Scheme;

(d)	whether the person has or had qualified for his or her maximum benefit entitlement under this Act;
(e)	any other matter that the Board considers relevant.

(6) The amount determined under sub-section (4) by the Board must not be more than 15 per cent of the employer-financed

Superannuation Acts (Amendment) Act 2000

s. 6 Act No. 29/2000

component of that part of the benefits
payable to the person that accrued after 20
August 1996.

(7) For the purposes of sub-section (4), if the

benefit is in the form of a pension
entitlement, the deduction is to be made by
the Board commuting the person's pension
entitlement to the extent determined by an
actuary appointed by the Board to be
necessary to meet the amount determined
under sub-section (4).

(8) The exercise of the power of commutation

under sub-section (7) does not affect the exercise of any other commutation rights under this Act.

25C. Commutation of pension to meet surcharge

liability

(1) The power of commutation under this

section applies if—

(a)	a person is receiving a pension under this Act; and
(b)	the person receives a notice of surcharge assessment on contributions made in respect of the person when he or she was a contributor from the Australian Taxation Office for which he or she is personally liable; and
(c)	the person makes an election in accordance with sub-section (2).

(2) The election must—

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 6

(a)	be made within the period of 3 months after the day on which the assessment is made; and
(b)	be made in a manner approved by the Board; and
(c)	authorise the Board to pay on the person's behalf the amount of the surcharge assessment directly to the

Australian Taxation Office.

(3) The Board must commute the person's pension to the extent determined by an actuary appointed by the Board to be

necessary to pay the amount of the surcharge
assessment.

(4) The Board must advise the person in writing as to the actuary's determination.

(5) The exercise of the power of commutation

under this section does not affect the
exercise of any other commutation rights
under this Act.".

_______________
Superannuation Acts (Amendment) Act 2000

s. 7 Act No. 29/2000

PART 3—AMENDMENT OF GOVERNMENT

SUPERANNUATION ACT 1999

7. Statute law revision

In section 10(8) of the Government substitute "sub-section (7)".

8. MTA Superannuation Fund

(1) In section 42(8) of the Government

Superannuation Act 1999 after "relevant
specified standards" insert "made under section

53 of the Transport Superannuation Act 1988".

(2) In section 42(8) of the Government

Superannuation Act 1999 after paragraph (b) insert—

"; and

(c) if a member of the MTA Superannuation Fund is subject to a notice of surcharge assessment, sections 44CA and 44CB of the Transport Superannuation Act 1988.".

_______________
Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 9

PART 4—AMENDMENT OF PARLIAMENTARY SALARIES

AND SUPERANNUATION ACT 1968

9. Amendment of section 6

(1) In the Table to section 6 of the Parliamentary Salaries and Superannuation Act 1968, after "Joint Investigatory Committee" insert "or

Economic Development Committee".

(2) In the Table to section 6 of the Parliamentary Salaries and Superannuation Act 1968, after "Joint Investigatory Committee" omit "or

Economic Development Committee".

10. Definitions

In section 10(1) of the Parliamentary Salaries
and Superannuation Act 1968, insert the
following definitions—

' "surchargeable contributions" means the

surchargeable contributions of a member for Collection) Act 1997 and any regulations made under that section that apply in respect of that particular financial year;

a particular financial year worked out in
accordance with section 8 of the
Commonwealth Superannuation

"surcharge debt account" means, in relation to a

person who is or has been a member, the
surcharge debt account kept for that person
(while he or she was a member) under
section 24D;

"surcharge deduction amount" means, in relation to a person—

(a) who is or has been a member; and

Superannuation Acts (Amendment) Act 2000

s. 11 Act No. 29/2000

(b) to or in respect of whom benefits become payable under this Act—

the surcharge deduction amount that is relation to the person;'.

specified in a determination made by the

11. New sections 24D and 24E inserted

After section 24C of the Parliamentary Salaries and Superannuation Act 1968 insert—

"24D. Surcharge debt account

(1) The Parliamentary Trustee must establish

and maintain a separate surcharge debt account for each member of the Fund.

(2) The Parliamentary Trustee must debit to a

member's surcharge debt account—

(a)	any superannuation contributions tax paid or payable by the Parliamentary Trustee on contributions in respect of the member as a result of the operation
Contributions Tax (Assessment and

of the Commonwealth Superannuation liability imposed under that Act; and

(b)	if the member's surcharge debt account is in debit at the end of a financial year, interest on the amount by which the
account is in debit, calculated at the same rate as the rate determined under section 16 of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and
(c)	any debit adjustment to the amount debited under paragraph (a).

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 11

(3) The Parliamentary Trustee must credit to a member's surcharge debt account—

(a)	any pre-payment by the member to the Parliamentary Trustee in respect of any payment made or to be made by the
Parliamentary Trustee to discharge or partially discharge the liability imposed under the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and
(b)	any credit adjustment to the amount debited under sub-section (2)(a); and
(c)	any surcharge deduction amount under sub-section (4); and
(d)	an amount to achieve a nil balance after all the debits under sub-section (2) and all the credits under paragraphs (a) to

(c) have been made.

(4) If—

(a) the liability imposed under the
Commonwealth Superannuation
Contributions Tax (Assessment and

the Parliamentary Trustee discharges that Act; and

(b)	benefits become payable to or in respect of a person who has held office as a member; and
(c)	the person's surcharge debt account is in debit when those benefits become so payable—

then, despite anything in any Act or in any
trust instrument, contract or other document,
the Parliamentary Trustee may reduce those

Superannuation Acts (Amendment) Act 2000

s. 11 Act No. 29/2000

benefits by an amount determined in writing
that, in the Parliamentary Trustee's opinion
on the advice of an actuary, would be fair
and reasonable having regard to the matters

specified in sub-section (5).

(5) In making the determination, the

Parliamentary Trustee must have regard to the following—

(a)	the amount by which the person's surcharge debt account is in debit when those benefits become payable;
(b)	the value of the employer-financed component of those benefits;
(c)	purpose of working out (under the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997) the surchargeable contributions reported

the value of the benefits that, for the likely to be payable to the person on his or her ceasing to hold office as a member;

(d)	whether the person has or had qualified for his or her maximum benefit entitlement under this Act;
(e)	any other matter that the Parliamentary Trustee considers relevant.

(6) The amount determined under sub-section

(4) by the Parliamentary Trustee must not be
more than 15 per cent of the employer-
financed component of that part of the
benefits payable to the person that accrued
after 20 August 1996.

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 11

(7) For the purposes of sub-section (4), if the

benefit is in the form of a pension
entitlement, the deduction is to be made by
the Parliamentary Trustee commuting the
member's pension entitlement to the extent
determined by an actuary appointed by the
Parliamentary Trustee to be necessary to
meet the amount determined under sub-
section (4).

(8) The exercise of the power of commutation

under sub-section (7) does not affect the exercise of any other commutation rights under this Act.

24E. Commutation of pension to meet surcharge

liability

(1) The power of commutation under this

section applies if—

(a)	a person is receiving a pension under this Act; and
(b)	the person receives a notice of surcharge assessment on contributions made in respect of the person when he or she was a member from the Australian Taxation Office for which he or she is personally liable; and
(c)	the person makes an election in accordance with sub-section (2).

(2) The election must—

(a)	be made within the period of 3 months after the day on which the assessment is made; and
(b)	be made in a manner approved by the Parliamentary Trustee; and

Superannuation Acts (Amendment) Act 2000

s. 11 Act No. 29/2000

(c) authorise the Parliamentary Trustee to pay on the person's behalf the amount of the surcharge assessment directly to the Australian Taxation Office.

(3) The Parliamentary Trustee must commute

the person's pension to the extent determined by an actuary appointed by the Parliamentary Trustee to be necessary to pay the amount of the surcharge assessment.

(4) The Parliamentary Trustee must advise the

person in writing as to the actuary's
determination.

(5) The exercise of the power of commutation

under this section does not affect the
exercise of any other commutation rights
under this Act.".

_______________
Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 12

PART 5—AMENDMENT OF STATE EMPLOYEES

RETIREMENT BENEFITS ACT 1979

12. Definitions

In section 2(1) of the State Employees
Retirement Benefits Act 1979, insert the
following definitions—
' "surchargeable contributions" means the

surchargeable contributions of a contributor for a particular financial year worked out in accordance with section 8 of the

Commonwealth Superannuation Collection) Act 1997 and any regulations made under that section that apply in respect of that particular financial year;

"surcharge debt account" means, in relation to a

person who is or has been a contributor, the surcharge debt account kept for that person (while he or she was a contributor) under
section 74CA;

"surcharge deduction amount" means, in relation to a person—

(a) who is or has been a contributor; and

(b) to or in respect of whom benefits become payable under this Act—

the surcharge deduction amount that is person;'.

specified in a determination made by the

Superannuation Acts (Amendment) Act 2000

s. 13 Act No. 29/2000

13. New sections 74CA–74CC inserted

After section 74C of the State Employees

Retirement Benefits Act 1979 insert—

"74CA. Surcharge debt account

(1) The Board must establish and maintain a separate surcharge debt account for each contributor.

(2) The Board must debit to a contributor's surcharge debt account—

(a) paid or payable by the Board on
contributions in respect of the
contributor as a result of the operation
of the Commonwealth Superannuation
Contributions Tax (Assessment and

any superannuation contributions tax liability imposed under that Act; and

(b)	if the contributor's surcharge debt account is in debit at the end of a financial year, interest on the amount
by which the account is in debit, calculated at the same rate as the rate determined under section 16 of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and
(c)	any debit adjustment to the amount debited under paragraph (a).

(3) The Board must credit to a contributor's

surcharge debt account—

(a) any pre-payment by the contributor to the Board in respect of any payment made or to be made by the Board to discharge or partially discharge the liability imposed under the

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000	s. 13
Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and

(b)	any credit adjustment to the amount debited under sub-section (2)(a); and
(c)	any surcharge deduction amount under sub-section (4); and
(d)	an amount to achieve a nil balance after all the debits under sub-section (2) and all the credits under paragraphs (a) to

(c) have been made.

(4) If—

(a) imposed under the Commonwealth
Superannuation Contributions Tax

the Board discharges the liability under section 7 of that Act; and

(b)	benefits become payable to or in respect of a person who has been a contributor; and
(c)	the person's surcharge debt account is in debit when those benefits become so payable—

then, despite anything in any Act or in any would be fair and reasonable having regard to the matters specified in sub-section (5).

trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the

(5) In making the determination, the Board must have regard to the following—

Superannuation Acts (Amendment) Act 2000

s. 13 Act No. 29/2000

(a)	the amount by which the person's surcharge debt account is in debit when those benefits become payable;
(b)	the value of the employer-financed component of those benefits;
(c)	purpose of working out (under the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997) the surchargeable contributions reported

the value of the benefits that, for the likely to be payable to the person on his or her ceasing to be a contributor;

(d)	whether the person has or had qualified for his or her maximum benefit entitlement under this Act;
(e)	any other matter that the Board considers relevant.

(6) The amount determined under sub-section (4) by the Board must not be more than 15 per cent of the employer-financed

component of that part of the benefits
payable to the person that accrued after 20
August 1996.

(7) For the purposes of sub-section (4), if the

benefit is in the form of a pension
entitlement, the deduction is to be made by
the Board commuting the person's pension
entitlement to the extent determined by an
actuary appointed by the Board to be
necessary to meet the amount determined
under sub-section (4).

(8) The exercise of the power of commutation under sub-section (7) does not affect the

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 13

exercise of any other commutation rights

under this Act.

74CB. Recovery of surcharge where person

entitled to deferred benefit

(1) This section applies if—

(a)	a person becomes entitled to a deferred benefit under this Act; and
(b)	paid by the Board on contributions in respect of the person, made when the person was a contributor, as a result of the operation of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997

any superannuation contributions tax is that Act; and

(c) the notice of surcharge assessment is issued after the person ceased to be a contributor.

(2) The Board must reduce the person's deferred

benefit to the extent determined by an actuary appointed by the Board to be necessary to recover the amount referred to
in sub-section (1).

(3) The Board must advise the person in writing as to the actuary's determination.

(4) The exercise of the power under sub-section (2) does not affect the exercise of any other commutation rights under this Act.

74CC. Commutation of pension to meet surcharge

liability

Superannuation Acts (Amendment) Act 2000

s. 13 Act No. 29/2000

(1) The power of commutation under this

section applies if—

(a)	a person is receiving a pension under this Act; and
(b)	the person receives a notice of surcharge assessment on contributions made in respect of the person when he or she was a contributor from the Australian Taxation Office for which he or she is personally liable; and
(c)	the person makes an election in accordance with sub-section (2).

(2) The election must—

(a)	be made within the period of 3 months after the day on which the assessment is made; and
(b)	be made in a manner approved by the Board; and
(c)	authorise the Board to pay on the person's behalf the amount of the surcharge assessment directly to the

Australian Taxation Office.

(3) The Board must commute the person's pension to the extent determined by an actuary appointed by the Board to be

necessary to pay the amount of the surcharge
assessment.

(4) The Board must advise the person in writing as to the actuary's determination.

(5) The exercise of the power of commutation under this section does not affect the

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 13

exercise of any other commutation rights

under this Act.".

_______________
Superannuation Acts (Amendment) Act 2000

s. 14 Act No. 29/2000

PART 6—AMENDMENT OF STATE SUPERANNUATION

ACT 1988

14. Definitions

In section 3(1) of the State Superannuation Act
1988, insert the following definitions—

' "surchargeable contributions" means the

surchargeable contributions of an officer for Collection) Act 1997 and any regulations made under that section that apply in respect of that particular financial year;

a particular financial year worked out in
accordance with section 8 of the
Commonwealth Superannuation

"surcharge debt account" means, in relation to a

person who is or has been an officer, the
surcharge debt account kept for that person
(while he or she was an officer) under
section 71C;

"surcharge deduction amount" means, in relation to a person—

(a) who is or has been an officer; and

(b) to or in respect of whom benefits become payable under this Act—

the surcharge deduction amount that is person;'.

specified in a determination made by the

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 15

15. New sections 71C–71E inserted

After section 71B of the State Superannuation

Act 1988 insert—

"71C. Surcharge debt account

(1) The Board must establish and maintain a separate surcharge debt account for each officer.

(2) The Board must debit to an officer's surcharge debt account—

(a) paid or payable by the Board on
contributions in respect of the officer as
a result of the operation of the
Commonwealth Superannuation
Contributions Tax (Assessment and

any superannuation contributions tax liability imposed under that Act; and

(b)	if the member's surcharge debt account is in debit at the end of a financial year, interest on the amount by which the
account is in debit, calculated at the same rate as the rate determined under section 16 of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and
(c)	any debit adjustment to the amount debited under paragraph (a).

(3) The Board must credit to an officer's

surcharge debt account—

(a) any pre-payment by the officer to the Board in respect of any payment made or to be made by the Board to discharge or partially discharge the liability imposed under the Commonwealth

Superannuation Acts (Amendment) Act 2000

s. 15	Act No. 29/2000
Superannuation Contributions Tax (Assessment and Collection) Act 1997; and

(b)	any credit adjustment to the amount debited under sub-section (2)(a); and
(c)	any surcharge deduction amount under sub-section (4); and
(d)	an amount to achieve a nil balance after all the debits under sub-section (2) and all the credits under paragraphs (a) to

(c) have been made.

(4) If—

(a) imposed under the Commonwealth
Superannuation Contributions Tax

the Board discharges the liability under section 7 of that Act; and

(b)	benefits become payable to or in respect of a person who has been an officer; and
(c)	the person's surcharge debt account is in debit when those benefits become so payable—

then, despite anything in any Act or in any would be fair and reasonable having regard to the matters specified in sub-section (5).

trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the

(5) In making the determination, the Board must have regard to the following—

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 15

(a)	the amount by which the person's surcharge debt account is in debit when those benefits become payable;
(b)	the value of the employer-financed component of those benefits;
(c)	purpose of working out (under the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997) the surchargeable contributions reported

the value of the benefits that, for the likely to be payable to the person on his or her ceasing to be an officer;

(d)	whether the person has or had qualified for his or her maximum benefit entitlement under this Act;
(e)	any other matter that the Board considers relevant.

(6) The amount determined under sub-section (4) by the Board must not be more than 15 per cent of the employer-financed

component of that part of the benefits
payable to the person that accrued after 20
August 1996.

(7) For the purposes of sub-section (4), if the

benefit is in the form of a pension
entitlement, the deduction is to be made by
the Board commuting the person's pension
entitlement to the extent determined by an
actuary appointed by the Board to be
necessary to meet the amount determined
under sub-section (4).

(8) The exercise of the power of commutation under sub-section (7) does not affect the

Superannuation Acts (Amendment) Act 2000

s. 15 Act No. 29/2000

exercise of any other commutation rights

under this Act.

71D. Recovery of surcharge where person

entitled to deferred benefit

(1) This section applies if—

(a)	a person becomes entitled to a deferred benefit under this Act; and
(b)	paid by the Board on contributions in respect of the person, made when the person was an officer, as a result of the operation of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997

any superannuation contributions tax is that Act; and

(c) the notice of surcharge assessment is issued after the person ceased to be an officer.

(2) The Board must reduce the person's deferred

benefit to the extent determined by an actuary appointed by the Board to be necessary to recover the amount referred to
in sub-section (1).

(3) The Board must advise the person in writing as to the actuary's determination.

(4) The exercise of the power under sub-section (2) does not affect the exercise of any other commutation rights under this Act.

71E. Commutation of pension to meet surcharge

liability

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 15

(1) The power of commutation under this

section applies if—

(a)	a person is receiving a pension under this Act; and
(b)	the person receives a notice of surcharge assessment on contributions made in respect of the person when he or she was an officer from the Australian Taxation Office for which he or she is personally liable; and
(c)	the person makes an election in accordance with sub-section (2).

(2) The election must—

(a)	be made within the period of 3 months after the day on which the assessment is made; and
(b)	be made in a manner approved by the Board; and
(c)	authorise the Board to pay on the person's behalf the amount of the surcharge assessment directly to the

Australian Taxation Office.

(3) The Board must commute the person's pension to the extent determined by an actuary appointed by the Board to be

necessary to pay the amount of the surcharge
assessment.

(4) The Board must advise the person in writing as to the actuary's determination.

(5) The exercise of the power of commutation under this section does not affect the

Superannuation Acts (Amendment) Act 2000

s. 15 Act No. 29/2000

exercise of any other commutation rights

under this Act.".

_______________
Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 16

PART 7—AMENDMENT OF SUPERANNUATION

(PORTABILITY) ACT 1989

16. New section 9A

After section 9 of the Superannuation
(Portability) Act 1989 insert—
"9A. Surcharge payments

The administrators of a statutory superannuation scheme must administer any surcharge paid or payable in respect of any benefit under this Act in accordance with the terms of the statutory superannuation scheme.".

_______________
Superannuation Acts (Amendment) Act 2000

s. 17 Act No. 29/2000

PART 8—AMENDMENT OF TRANSPORT

SUPERANNUATION ACT 1988

17. Definitions

In section 3(1) of the Transport Superannuation
Act 1988, insert the following definitions—

' "surchargeable contributions" means the

surchargeable contributions of a member for Collection) Act 1997 and any regulations made under that section that apply in respect of that particular financial year;

a particular financial year worked out in
accordance with section 8 of the
Commonwealth Superannuation

"surcharge debt account" means, in relation to a

person who is or has been a member, the
surcharge debt account kept for that person
(while he or she was a member) under
section 44CA;

"surcharge deduction amount" means, in relation to a person—

(a) who is or has been a member; and

(b) to or in respect of whom benefits become payable under this Act—

the surcharge deduction amount that is person;'.

specified in a determination made by the

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 18

18. New sections 44CA–CC inserted

After section 44C of the Transport Superannuation Act 1988 insert—

"44CA. Surcharge debt account

(1) The Board must establish and maintain a separate surcharge debt account for each member of the Fund.

(2) The Board must debit to a member's

surcharge debt account—

(a) paid or payable by the Board on
contributions in respect of the member
as a result of the operation of the
Commonwealth Superannuation
Contributions Tax (Assessment and

any superannuation contributions tax liability imposed under that Act; and

(b)	if the member's surcharge debt account is in debit at the end of a financial year, interest on the amount by which the
account is in debit, calculated at the same rate as the rate determined under section 16 of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997; and
(c)	any debit adjustment to the amount debited under paragraph (a).

(3) The Board must credit to a member's

surcharge debt account—

(a)	any pre-payment by the member to the Board in respect of any payment made or to be made by the Board to discharge
or partially discharge the liability imposed under the Commonwealth

Superannuation Acts (Amendment) Act 2000

s. 18	Act No. 29/2000
Superannuation Contributions Tax (Assessment and Collection) Act 1997; and

(b)	any credit adjustment to the amount debited under sub-section (2)(a); and
(c)	any surcharge deduction amount under sub-section (4); and
(d)	an amount to achieve a nil balance after all the debits under sub-section (2) and all the credits under paragraphs (a) to

(c) have been made.

(4) If—

(a) imposed under the Commonwealth
Superannuation Contributions Tax

the Board discharges the liability under section 7 of that Act; and

(b)	benefits become payable to or in respect of a person who has been a member of the Scheme; and
(c)	the person's surcharge debt account is in debit when those benefits become so payable—

then, despite anything in any Act or in any would be fair and reasonable having regard to the matters specified in sub-section (5).

trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the

(5) In making the determination, the Board must have regard to the following—

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 18

(a)	the amount by which the person's surcharge debt account is in debit when those benefits become payable;
(b)	the value of the employer-financed component of those benefits;
(c)	purpose of working out (under the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997) the surchargeable contributions reported

the value of the benefits that, for the likely to be payable to the person on his or her ceasing to be a member of the Scheme;

(d)	whether the person has or had qualified for his or her maximum benefit entitlement under this Act;
(e)	any other matter that the Board considers relevant.

(6) The amount determined under sub-section (4) by the Board must not be more than 15 per cent of the employer-financed

component of that part of the benefits
payable to the person that accrued after 20
August 1996.

(7) For the purposes of sub-section (4), if the

benefit is in the form of a pension
entitlement, the deduction is to be made by
the Board commuting the person's pension
entitlement to the extent determined by an
actuary appointed by the Board to be
necessary to meet the amount determined
under sub-section (4).

Superannuation Acts (Amendment) Act 2000

s. 18 Act No. 29/2000

(8) The exercise of the power of commutation

under sub-section (7) does not affect the exercise of any other commutation rights under this Act.

44CB. Recovery of surcharge where person

entitled to deferred benefit

(1) This section applies if—

(a)	a person becomes entitled to a deferred benefit under this Act; and
(b)	paid by the Board on contributions in respect of the person, made when the person was a member, as a result of the operation of the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997

any superannuation contributions tax is that Act; and

(c) the notice of surcharge assessment is issued after the person ceased to be a member of the Scheme.

(2) The Board must reduce the person's deferred

benefit to the extent determined by an actuary appointed by the Board to be necessary to recover the amount referred to
in sub-section (1).

(3) The Board must advise the person in writing as to the actuary's determination.

(4) The exercise of the power under sub-section (2) does not affect the exercise of any other commutation rights under this Act.

Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 s. 18

44CC. Commutation of pension to meet surcharge

liability

(1) The power of commutation under this

section applies if—

(a)	a person is receiving a pension under this Act; and
(b)	the person receives a notice of surcharge assessment on contributions made in respect of the person when he or she was a member from the Australian Taxation Office for which he or she is personally liable; and
(c)	the person makes an election in accordance with sub-section (2).

(2) The election must—

(a)	be made within the period of 3 months after the day on which the assessment is made; and
(b)	be made in a manner approved by the Board; and
(c)	authorise the Board to pay on the person's behalf the amount of the surcharge assessment directly to the

Australian Taxation Office.

(3) The Board must commute the person's pension to the extent determined by an actuary appointed by the Board to be

necessary to pay the amount of the surcharge
assessment.

(4) The Board must advise the person in writing as to the actuary's determination.

Superannuation Acts (Amendment) Act 2000

s. 18 Act No. 29/2000

(5) The exercise of the power of commutation

under this section does not affect the
exercise of any other commutation rights
under this Act.".

═══════════════
Superannuation Acts (Amendment) Act 2000

Act No. 29/2000 Notes

NOTES

†

Minister's second reading speech—

Legislative Assembly: 4 May 2000

Legislative Council: 24 May 2000

The long title for the Bill for this Act was "to amend the Emergency
Services Superannuation Act 1986, the Government Superannuation
Act 1999, the Parliamentary Salaries and Superannuation Act 1968,
the State Employees Retirement Benefits Act 1979, the State
Superannuation Act 1988, the Superannuation (Portability) Act 1989
and the Transport Superannuation Act 1988 and for other purposes."