Commonwealth Consolidated Acts

GOVERNOR-GENERAL ACT 1974 - SECT 4AG

  (1)   This section applies if, at the operative time, a standard allowance is payable in respect of the original interest.

Reduction of allowances

  (2)   If the standard allowance is not a retirement allowance, the rate of the allowance is reduced to the amount calculated under the Allowance Orders.

  (3)   If the standard allowance is a retirement allowance, the rate of the allowance is worked out as follows:

  (a)   work out the rate of the allowance under section   4 (disregarding subsection   4(4));

  (b)   reduce that rate to the amount calculated under the Allowance Orders.

Effect of reduction of retirement allowance

  (4)   If:

  (a)   the rate of a retirement allowance payable to a person is reduced under subsection   (3); and

  (b)   a spouse allowance later becomes payable because the person dies;

then, for the purposes of working out the rate of the spouse allowance under paragraph   4(3)(b), the rate applicable under paragraph   4(3)(a) is reduced to the amount calculated under the Allowance Orders.

Note:   The rate of the spouse allowance may be reduced under subsection   4(4).