(1) Subject to subsection 82ZB(6), where section 82ZA or 82ZB applies in relation to a person:
(a) any benefit that, but for this Division, would be payable to or in respect of him by reason of his having ceased to be a member is not payable; and
(b) any gratuity in respect of his service as a member of the Defence Force that, but for this section, would have become payable to or in respect of him otherwise than under this Act upon the expiration of that service is not payable;
except where that benefit or gratuity is payable by virtue of the operation of this Division.
(2) Where:
(a) a payment has been made under section 40, 42, 42A, 43, 52, 56, 56A, 60 or 82G to a person who has ceased to be a member; and
(b) after the payment was made, the person makes an election under section 82Z;
the election does not have any effect unless an amount equal to the amount of the payment is paid to the Fund within 7 days after the date of the election or within such further period as the Board in special circumstances allows.
(3) An amount, or the sum of the amounts, paid to the Fund in accordance with subsection (2) in respect of a benefit consisting of a refund of contributions and a gratuity received by a person shall, to the extent that it exceeds the amount of the refund of contributions, be paid from the Fund to the Commonwealth.
(4) Where:
(a) a gratuity in respect of the service of a person as a member of the Defence Force has been paid to the person otherwise than under this Act upon the expiration of that service; and
(b) after the gratuity was paid, the person makes an election under section 82Z;
the election does not have any effect unless an amount equal to the amount of the gratuity is paid to the Commonwealth within 7 days after the date of the election or within such further period as the Board in special circumstances allows.
(5) Upon the transfer of the moneys of the Fund, by virtue of section 21A, to the Commonwealth, this section has effect as if:
(a) the requirement in subsection (2) that an amount be paid to the Fund were a requirement that that amount be paid to the Commonwealth and not to the Fund; and
(b) subsection (3) were omitted.
(6) In this section, a reference to the Board shall be read as including a reference to the Authority.