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PARLIAMENT OF VICTORIA
Superannuation Acts (Amendment) Act 2000
Act No.
TABLE OF PROVISIONS
Clause 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
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Clause 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
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PARLIAMENT OF VICTORIA
Initiated in Assembly 3 May 2000
A BILL
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.
Superannuation Acts (Amendment) Act
2000
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is to--
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(a) insert provisions relating to the
superannuation contributions tax into
specified Superannuation Acts; and
(b) make miscellaneous amendments to
5 specified Superannuation Acts.
2. Commencement
(1) This Act, except section 9, comes into operation
on the day after the day on which it receives the
Royal Assent.
10 (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
15 operation.
_______________
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PART 2--AMENDMENT OF EMERGENCY SERVICES
SUPERANNUATION ACT 1986
3. Definitions
(1) In section 3 of the Emergency Services
5 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
10 Superannuation Act 1986, insert the following
definitions--
' "surchargeable contributions" means the
surchargeable contributions of a contributor
for a particular financial year worked out in
15 accordance with section 8 of the
Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997 and any regulations
made under that section that apply in respect
20 of that particular financial year;
"surcharge debt account" means, in relation to a
person who is or has been a contributor to
the Scheme or member of the ESSPLAN
Scheme, the surcharge debt account kept for
25 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--
30 (a) who is or has been a contributor; and
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(b) to or in respect of whom benefits
become payable under this Act--
the surcharge deduction amount that is
specified in a determination made by the
5 Board under section 25B in relation to the
person;'.
4. Beneficiaries Accounts
(1) For section 21J(3) of the Emergency Services
Superannuation Act 1986 substitute--
10 "(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
15 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
20 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
25 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
30 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
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beneficiary's dependants and legal
personal representatives and in such
proportions as the Board in its absolute
discretion determines.
5 (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
10 beneficiary; and
(b) specified in a notice of surcharge
assessment from the Australian
Taxation Office issued after the
beneficiary ceased to be a contributor.
15 (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
20 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
25 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
30 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.
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(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
5 (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
10 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
15 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
20 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) any superannuation contributions tax
25 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
30 (Assessment and Collection) Act 1997
to discharge the liability imposed under
that Act; and
(b) if the contributor's or member's
surcharge debt account is in debit at the
35 end of a financial year, interest on the
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amount by which the account is in
debit, calculated at the same rate as the
rate determined under section 16 of the
Commonwealth Superannuation
5 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
10 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
15 discharge the liability imposed under
the Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997; and
(b) any credit adjustment to the amount
20 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
25 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) the Board discharges the liability
30 imposed under the Commonwealth
Superannuation Contributions Tax
(Assessment and Collection) Act 1997
under section 7 of that Act; and
(b) benefits become payable under Part 3 to
35 or in respect of that person; and
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(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
5 trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the
Board's opinion on the advice of an actuary,
would be fair and reasonable having regard
10 to the matters specified in sub-section (5).
(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
15 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
20 Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997) the
surchargeable contributions reported
for the person, were assumed to be
25 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
30 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
35 per cent of the employer-financed
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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
5 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
10 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
15 under this Act.
25C. Commutation of pension to meet surcharge
liability
(1) The power of commutation under this
section applies if--
20 (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
25 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).
30 (2) The election must--
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(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
5 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.
10 (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.
15 (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
20 under this Act.".
_______________
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PART 3--AMENDMENT OF GOVERNMENT
SUPERANNUATION ACT 1999
7. Statute law revision
In section 10(8) of the Government
5 Superannuation Act 1999 for "sub-section (1)"
substitute "sub-section (7)".
8. MTA Superannuation Fund
(1) In section 42(8) of the Government
Superannuation Act 1999 after "relevant
10 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--
15 "; 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.".
20 _______________
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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
5 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
10 "Joint Investigatory Committee" omit "or
Economic Development Committee".
10. Definitions
In section 10(1) of the Parliamentary Salaries
and Superannuation Act 1968, insert the
15 following definitions--
' "surchargeable contributions" means the
surchargeable contributions of a member for
a particular financial year worked out in
accordance with section 8 of the
20 Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997 and any regulations
made under that section that apply in respect
of that particular financial year;
25 "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;
30 "surcharge deduction amount" means, in
relation to a person--
(a) who is or has been a member; and
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(b) to or in respect of whom benefits
become payable under this Act--
the surcharge deduction amount that is
specified in a determination made by the
5 Parliamentary Trustee under section 24D in
relation to the person;'.
11. New sections 24D and 24E inserted
After section 24C of the Parliamentary Salaries
and Superannuation Act 1968 insert--
10 "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
15 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
20 of the Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997 to discharge the
liability imposed under that Act; and
(b) if the member's surcharge debt account
25 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
30 Superannuation Contributions Tax
(Assessment and Collection) Act 1997;
and
(c) any debit adjustment to the amount
debited under paragraph (a).
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(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
5 payment made or to be made by the
Parliamentary Trustee to discharge or
partially discharge the liability imposed
under the Commonwealth
Superannuation Contributions Tax
10 (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
15 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.
20 (4) If--
(a) the Parliamentary Trustee discharges
the liability imposed under the
Commonwealth Superannuation
Contributions Tax (Assessment and
25 Collection) Act 1997 under section 7 of
that Act; and
(b) benefits become payable to or in
respect of a person who has held office
as a member; and
30 (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,
35 the Parliamentary Trustee may reduce those
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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
5 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
10 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
15 purpose of working out (under the
Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997) the
surchargeable contributions reported
20 for the person, were assumed to be
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
25 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
30 (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.
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(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
5 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).
10 (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
15 liability
(1) The power of commutation under this
section applies if--
(a) a person is receiving a pension under
this Act; and
20 (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
25 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
30 after the day on which the assessment is
made; and
(b) be made in a manner approved by the
Parliamentary Trustee; and
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(c) authorise the Parliamentary Trustee to
pay on the person's behalf the amount
of the surcharge assessment directly to
the Australian Taxation Office.
5 (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.
10 (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
15 exercise of any other commutation rights
under this Act.".
_______________
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PART 5--AMENDMENT OF STATE EMPLOYEES
RETIREMENT BENEFITS ACT 1979
12. Definitions
In section 2(1) of the State Employees
5 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
10 accordance with section 8 of the
Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997 and any regulations
made under that section that apply in respect
15 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
20 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
25 become payable under this Act--
the surcharge deduction amount that is
specified in a determination made by the
Board under section 74CA in relation to the
person;'.
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13. New sections 74CA-74CC inserted
After section 74C of the State Employees
Retirement Benefits Act 1979 insert--
"74CA. Surcharge debt account
5 (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--
10 (a) any superannuation contributions tax
paid or payable by the Board on
contributions in respect of the
contributor as a result of the operation
of the Commonwealth Superannuation
15 Contributions Tax (Assessment and
Collection) Act 1997 to discharge the
liability imposed under that Act; and
(b) if the contributor's surcharge debt
account is in debit at the end of a
20 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
25 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
30 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
35 liability imposed under the
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Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997; and
(b) any credit adjustment to the amount
5 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
10 all the credits under paragraphs (a) to
(c) have been made.
(4) If--
(a) the Board discharges the liability
imposed under the Commonwealth
15 Superannuation Contributions Tax
(Assessment and Collection) Act 1997
under section 7 of that Act; and
(b) benefits become payable to or in
respect of a person who has been a
20 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
25 trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the
Board's opinion on the advice of an actuary,
would be fair and reasonable having regard
30 to the matters specified in sub-section (5).
(5) In making the determination, the Board must
have regard to the following--
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(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
5 component of those benefits;
(c) the value of the benefits that, for the
purpose of working out (under the
Commonwealth Superannuation
Contributions Tax (Assessment and
10 Collection) Act 1997) the
surchargeable contributions reported
for the person, were assumed to be
likely to be payable to the person on his
or her ceasing to be a contributor;
15 (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.
20 (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
25 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
30 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
35 under sub-section (7) does not affect the
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exercise of any other commutation rights
under this Act.
74CB. Recovery of surcharge where person
entitled to deferred benefit
5 (1) This section applies if--
(a) a person becomes entitled to a deferred
benefit under this Act; and
(b) any superannuation contributions tax is
paid by the Board on contributions in
10 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
15 to discharge the liability imposed under
that Act; and
(c) the notice of surcharge assessment is
issued after the person ceased to be a
contributor.
20 (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).
25 (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.
30 74CC. Commutation of pension to meet surcharge
liability
22
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 13
Act No.
(1) The power of commutation under this
section applies if--
(a) a person is receiving a pension under
this Act; and
5 (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
10 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
15 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
20 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
25 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.
30 (5) The exercise of the power of commutation
under this section does not affect the
23
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 13
Act No.
exercise of any other commutation rights
under this Act.".
_______________
24
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 14
Act No.
PART 6--AMENDMENT OF STATE SUPERANNUATION
ACT 1988
14. Definitions
In section 3(1) of the State Superannuation Act
5 1988, insert the following definitions--
' "surchargeable contributions" means the
surchargeable contributions of an officer for
a particular financial year worked out in
accordance with section 8 of the
10 Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997 and any regulations
made under that section that apply in respect
of that particular financial year;
15 "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;
20 "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--
25 the surcharge deduction amount that is
specified in a determination made by the
Board under section 71C in relation to the
person;'.
25
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 15
Act No.
15. New sections 71C-71E inserted
After section 71B of the State Superannuation
Act 1988 insert--
"71C. Surcharge debt account
5 (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--
10 (a) any superannuation contributions tax
paid or payable by the Board on
contributions in respect of the officer as
a result of the operation of the
Commonwealth Superannuation
15 Contributions Tax (Assessment and
Collection) Act 1997 to discharge the
liability imposed under that Act; and
(b) if the member's surcharge debt account
is in debit at the end of a financial year,
20 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
25 (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
30 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
35 imposed under the Commonwealth
26
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 15
Act No.
Superannuation Contributions Tax
(Assessment and Collection) Act 1997;
and
(b) any credit adjustment to the amount
5 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
10 all the credits under paragraphs (a) to
(c) have been made.
(4) If--
(a) the Board discharges the liability
imposed under the Commonwealth
15 Superannuation Contributions Tax
(Assessment and Collection) Act 1997
under section 7 of that Act; and
(b) benefits become payable to or in
respect of a person who has been an
20 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
25 trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the
Board's opinion on the advice of an actuary,
would be fair and reasonable having regard
30 to the matters specified in sub-section (5).
(5) In making the determination, the Board must
have regard to the following--
27
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 15
Act No.
(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
5 component of those benefits;
(c) the value of the benefits that, for the
purpose of working out (under the
Commonwealth Superannuation
Contributions Tax (Assessment and
10 Collection) Act 1997) the
surchargeable contributions reported
for the person, were assumed to be
likely to be payable to the person on his
or her ceasing to be an officer;
15 (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.
20 (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
25 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
30 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
35 under sub-section (7) does not affect the
28
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 15
Act No.
exercise of any other commutation rights
under this Act.
71D. Recovery of surcharge where person
entitled to deferred benefit
5 (1) This section applies if--
(a) a person becomes entitled to a deferred
benefit under this Act; and
(b) any superannuation contributions tax is
paid by the Board on contributions in
10 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
15 to discharge the liability imposed under
that Act; and
(c) the notice of surcharge assessment is
issued after the person ceased to be an
officer.
20 (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).
25 (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.
30 71E. Commutation of pension to meet surcharge
liability
29
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 15
Act No.
(1) The power of commutation under this
section applies if--
(a) a person is receiving a pension under
this Act; and
5 (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
10 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
15 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
20 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
25 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.
30 (5) The exercise of the power of commutation
under this section does not affect the
30
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 15
Act No.
exercise of any other commutation rights
under this Act.".
_______________
31
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 16
Act No.
PART 7--AMENDMENT OF SUPERANNUATION
(PORTABILITY) ACT 1989
16. New section 9A
After section 9 of the Superannuation
5 (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
10 benefit under this Act in accordance with the
terms of the statutory superannuation
scheme.".
_______________
32
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 17
Act No.
PART 8--AMENDMENT OF TRANSPORT
SUPERANNUATION ACT 1988
17. Definitions
In section 3(1) of the Transport Superannuation
5 Act 1988, insert the following definitions--
' "surchargeable contributions" means the
surchargeable contributions of a member for
a particular financial year worked out in
accordance with section 8 of the
10 Commonwealth Superannuation
Contributions Tax (Assessment and
Collection) Act 1997 and any regulations
made under that section that apply in respect
of that particular financial year;
15 "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;
20 "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--
25 the surcharge deduction amount that is
specified in a determination made by the
Board under section 44CA in relation to the
person;'.
33
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 18
Act No.
18. New sections 44CA-CC inserted
After section 44C of the Transport
Superannuation Act 1988 insert--
"44CA. Surcharge debt account
5 (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--
10 (a) any superannuation contributions tax
paid or payable by the Board on
contributions in respect of the member
as a result of the operation of the
Commonwealth Superannuation
15 Contributions Tax (Assessment and
Collection) Act 1997 to discharge the
liability imposed under that Act; and
(b) if the member's surcharge debt account
is in debit at the end of a financial year,
20 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
25 (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
30 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
35 imposed under the Commonwealth
34
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 18
Act No.
Superannuation Contributions Tax
(Assessment and Collection) Act 1997;
and
(b) any credit adjustment to the amount
5 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
10 all the credits under paragraphs (a) to
(c) have been made.
(4) If--
(a) the Board discharges the liability
imposed under the Commonwealth
15 Superannuation Contributions Tax
(Assessment and Collection) Act 1997
under section 7 of that Act; and
(b) benefits become payable to or in
respect of a person who has been a
20 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
25 trust instrument, contract or other document,
the Board may reduce those benefits by an
amount determined in writing that, in the
Board's opinion on the advice of an actuary,
would be fair and reasonable having regard
30 to the matters specified in sub-section (5).
(5) In making the determination, the Board must
have regard to the following--
35
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 18
Act No.
(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
5 component of those benefits;
(c) the value of the benefits that, for the
purpose of working out (under the
Commonwealth Superannuation
Contributions Tax (Assessment and
10 Collection) Act 1997) the
surchargeable contributions reported
for the person, were assumed to be
likely to be payable to the person on his
or her ceasing to be a member of the
15 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
20 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
25 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
30 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).
36
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 18
Act No.
(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.
5 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
10 (b) any superannuation contributions tax is
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
15 Superannuation Contributions Tax
(Assessment and Collection) Act 1997
to discharge the liability imposed under
that Act; and
(c) the notice of surcharge assessment is
20 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
25 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
30 (2) does not affect the exercise of any other
commutation rights under this Act.
37
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 18
Act No.
44CC. Commutation of pension to meet surcharge
liability
(1) The power of commutation under this
section applies if--
5 (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
10 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).
15 (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
20 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.
25 (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.
30 (4) The Board must advise the person in writing
as to the actuary's determination.
38
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
s. 18
Act No.
(5) The exercise of the power of commutation
under this section does not affect the
exercise of any other commutation rights
under this Act.".
5
39
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
Superannuation Acts (Amendment) Act 2000
Notes
Act No.
NOTES
By Authority. Government Printer for the State of Victoria.
40
541073B.I1-5/5/2000 BILL LA CIRCULATION 5/5/2000
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