Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

Act No. 69 of 1997 as amended

This compilation was prepared on 16 August 2005
taking into account amendments up to Act No. 102 of 2005

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

Contents

1 Short title [see Note 1]...........................

2 Commencement [see Note 1].......................

3 Interpretation.................................

4 Trustee may reduce member’s benefits on account of surcharge...

Notes

An Act relating to the reduction of the benefits payable to members of unfunded non‑contributory Commonwealth superannuation schemes on account of superannuation contributions tax, and for related purposes

1  Short title [see Note 1]

  This Act may be cited as the Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997.

2  Commencement [see Note 1]

  This Act commences on the day on which it receives the Royal Assent.

3  Interpretation

  Any expression that is used in this Act and in the Superannuation Contributions Tax (Assessment and Collection) Act 1997 has the same meaning as in that Act.

4  Trustee may reduce member’s benefits on account of surcharge

 (1) If the liability of the trustee of an unfunded defined benefits superannuation scheme to pay the superannuation contributions surcharge that arose because of the operation of section 5 of the Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 is discharged under section 7 of that Act, then, despite anything in any trust instrument, contract or other document or in any legislation, the trustee may reduce any benefits that become payable for the benefit of the member by such amount, subject to subsection (2A), as the trustee considers to be fair and reasonable having regard to the matters specified in subsection (3).

 (2) However, subsection (1) does not apply if its application would or might result in a contravention of the Constitution.

 (2A) The amount of the reduction under subsection (1) may not be more than the total of the following amounts:

 (a) 15% of the employer‑financed component of any part of the benefits payable to the member that accrued between 20 August 1996 and 1 July 2003;

 (b) 14.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the 2003‑2004 financial year;

 (c) 12.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the 2004‑2005 financial year.

 (3) In determining, for the purposes of subsection (1), the amount by which benefits that become payable for the benefit of a member are to be reduced, the trustee is to have regard to the following:

 (a) the amount by which the surcharge debt account kept by the trustee for the member 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 becoming entitled to them;

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

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

Notes to the Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

Note 1

The Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997 as shown in this compilation comprises Act No. 69, 1997 amended as indicated in the Tables below.

For all relevant information pertaining to application, saving or transitional provisions see Table A.

Table of Acts

(a) The Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997 was amended by Schedule 9 only of the Superannuation Legislation Amendment (Superannuation Contributions Tax) Act 1997, subsection 2(2) of which provides as follows:

 (2) Schedule 9 is taken to have commenced on 5 June 1997, immediately after the commencement of the Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997.

Table of Amendments

Table A

Application, saving or transitional provisions

Superannuation (Surcharge Rate Reduction) Amendment Act 2003
(No. 112, 2003)

Schedule 1

33  Application of items 24 to 30

The amendments made by items 24 to 30 apply in relation to benefits that become payable on or after 1 July 2003.

Note: The Acts amended by items 24 to 30 continue to apply in relation to benefits that become payable before 1 July 2003 as if the amendments made by those items had not been made.

Superannuation Budget Measures Act 2004 (No. 106, 2004)

Schedule 2

11  Application of amendments

(2) The amendments made by items 4 to 9 of this Schedule apply in relation to benefits that become payable on or after 1 July 2004.