Commonwealth Consolidated Acts

PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1948 - SECT 19AAA

Election

  (1)   If:

  (a)   a person (the deceased person ) dies and:

  (i)   the deceased person was entitled to a parliamentary allowance; or

  (ii)   the deceased person was entitled to a retiring allowance, whether or not the retiring allowance was immediately payable; and

  (b)   the deceased person is survived by a spouse; and

  (c)   the spouse is entitled to an annuity; and

  (d)   an assessment is made of the surcharge on the deceased person's surchargeable contributions for a financial year; and

  (e)   the spouse becomes liable to pay the surcharge under the assessment in accordance with paragraph   10(4)(ca) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 ;

the spouse may, within:

  (f)   3 months after the assessment was made; or

  (g)   such longer period as the Trust allows;

give the Secretary of the Finance Department a written notice electing to commute the whole or a part of the annuity to a lump sum benefit equal to the amount specified in the election.

  (2)   The election must be accompanied by:

  (a)   a written notice requesting that the amount of the lump sum benefit be:

  (i)   paid to the Commissioner of Taxation; and

  (ii)   wholly applied in payment of surcharge under the assessment; and

  (b)   a copy of the notice of assessment.

Surcharge commutation amount

  (3)   The amount specified in the election:

  (a)   must be equal to or less than the amount of surcharge under the assessment; and

  (b)   must not have the effect of reducing the annuity below zero; and

  (c)   is to be known as the surcharge commutation amount for the purposes of this section.

Entitlement to lump sum benefit

  (4)   If a spouse makes an election under subsection   (1), the spouse is entitled to a lump sum benefit equal to the surcharge commutation amount.

  (5)   If a spouse is entitled to a lump sum benefit under subsection   (4), the liability to pay that benefit must be discharged by:

  (a)   paying the amount of that benefit to the Commissioner of Taxation in accordance with the spouse's request; and

  (b)   informing the Commissioner of Taxation of the spouse's request that the amount be wholly applied in payment of surcharge under the assessment concerned.

Reduction of annuity

  (6)   If a spouse makes an election under subsection   (1) in relation to an annuity, the rate of the annuity is to be reduced in accordance with the method determined in writing by the Trust in relation to the spouse following consultation with an actuary. The reduction takes effect from the beginning of the day of the election.

  (7)   A method determined by the Trust under subsection   (6) is to be a method that, having regard to:

  (a)   the age of the spouse when the election is made under subsection   (1); and

  (b)   other relevant factors (if any);

is applicable for the purpose of working out, in relation to the spouse, the rate by which the annuity would have to be reduced to discharge a liability equal to the surcharge commutation amount.

One election per assessment

  (8)   A spouse is not entitled to make more than one election under subsection   (1) in relation to a particular assessment.