Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If an eligible employee has been in employment (the previous employment ), within or outside Australia, on the termination of which a transfer value or transfer values became payable to or in relation to him or her under a superannuation scheme applicable in relation to that employment and:
(a) the transfer value or transfer values, as the case may be, became payable on or after 25 May 1971; and
(b) the eligible employee elects by written notice given to CSC to pay CSC an amount ( the election amount ) equal to the amount of the transfer value or, if 2 or more transfer values became payable, the total of the amounts of those transfer values:
(i) before the transfer value or transfer values, as the case may be, are paid; or
(ii) not later than 3 months after the day on which:
(A) the person becomes an eligible employee; or
(B) the transfer value or transfer values, as the case may be, became payable;
whichever is the later; or
(iii) within such further period as CSC, in special circumstances allows; and
(c) the election amount is, before the expiration of the period referred to in subparagraph (b)(ii) or (iii), as the case may be, paid to CSC;
then the succeeding provisions of this section have effect.
(2) Where an amount (in this section referred to as the transferred amount ) has been paid by a person to CSC under subsection (1):
(a) so much of the transferred amount as is equal to the employee component of the transfer value, or the sum of the employee components of the transfer values, as the case may be, shall be paid by CSC into the Superannuation Fund, and, for the purposes of this Act, the amount so paid by CSC into the Superannuation Fund shall, subject to subsection (3), be deemed to be basic contributions paid by the person to CSC under this Act; and
(b) so much of the transferred amount as is equal to the employer component of the transfer value or the sum of the employer components of the transfer values, as the case may be, shall be paid by CSC to the Commonwealth; and
(c) so much of the transferred amount as is equal to the sum of:
(i) the amount of any productivity related benefit within the meaning of Part VIA and interest on that amount or, if the transferred amount does not include an amount of productivity related benefit, the notional productivity amount; and
(ii) the amount of the person's accumulated employer contributions (if any) included in a transfer value (if any) that was payable to the person under Division 3 of Part IX and interest on that amount; and
(iii) the amount of any part of the benefit payable in respect of the person under Part VIAB included in a transfer value (if any) that was payable to the person under Division 3 of Part IX and interest on that amount;
must be paid by CSC into the Superannuation Fund, and, for the purposes of this Act, the amount so paid is taken to be productivity contributions within the meaning of Part VIA.
(3) If, upon the person ceasing to be an eligible employee, a lump sum benefit becomes payable to or in respect of him or her under or in accordance with subsection 62(2) or (2A), 69(2), 72(2), 73(2), 84(2), 87(2), 88(1), 99(2) or 101(2), then, for the purpose of calculating the amount of that benefit, the amount of his or her accumulated basic contributions shall be deemed to be the amount that would have been the amount of his or her accumulated basic contributions if the amount paid into the Superannuation Fund in respect of him or her under paragraph (2)(a) of this section had been an amount equal to two - sevenths of the transferred amount (other than so much of that transferred amount as is worked out under paragraph (2)(c)).
(4) If, upon the person ceasing to be an eligible employee, a lump sum benefit becomes payable to or in respect of him or her under section 80 or 111 and the amount, or a part of the amount, paid to the Commonwealth in respect of him or her under paragraph (2)(b) of this section is an amount that, whether or not he or she engaged in further employment, was payable to or in respect of him or her on the termination of the previous employment, there is payable to or in respect of the person an additional lump sum benefit of an amount equal to the total of:
(a) the available part of the amount paid to the Commonwealth in respect of the person under paragraph (2)(b); and
(b) the amount that would have accrued by way of interest on that amount if it had been paid into the Superannuation Fund on the day on which the amount referred to in paragraph (a) was paid to the Commonwealth.
(4AA) The reference in paragraph (4)(a) to the available part of an amount paid to the Commonwealth in respect of the person under paragraph (2)(b) is a reference to so much of that amount as exceeds any part of that amount that:
(a) would not have been available for payment to, or preservation in the name of, the person on the termination of the previous employment out of the superannuation scheme applicable to that employment; or
(b) would not have been retained in that scheme for payment to or in respect of the person at a later date under the rules of that scheme;
unless the person engaged in further employment.
(4A) Subject to subsection (4B) and (4C), any benefit payable to or in respect of a person under subsection (4) must be:
(a) paid, for the benefit of the person, to a preservation fund nominated by the person; or
(b) applied, on behalf of the person, for the purchase of a deferred annuity nominated by the person; or
(c) if the person does not make a nomination within 90 days after the benefit becomes payable--paid, for the benefit of the person, to an eligible roll - over fund nominated by CSC.
(4B) Subsection (4A) does not apply to a benefit payable to or in respect of a person if:
(a) the person is 55 or over and has given CSC a written statement to the effect that he or she has retired from the workforce; or
(b) the benefit becomes payable on the person's death; or
(c) the total of:
(i) the amount of the person's accumulated employer contributions under section 110Q; and
(ii) the amount that would be preserved or applied under subsection (4A) in relation to the person but for the operation of this subsection; and
(iii) the amount of superannuation guarantee top - up benefit paid to the person; and
(iv) if a benefit is payable in respect of the person under Part VIAB--the employer component of that benefit;
is less than $500; or
(d) CSC is satisfied that the person is departing permanently from Australia.
(4C) Subsection (4A) does not apply to a benefit, or a part of a benefit, payable to or in respect of a person if the person establishes, to the satisfaction of CSC, that the benefit or the part of the benefit, as the case may be, need not be preserved or applied under subsection (4A) in order to satisfy whichever of the following (if any) is applicable to the benefit:
(a) the superannuation fund conditions applicable under the provisions of the Occupational Superannuation Standards Act 1987 , as those provisions:
(i) apply to a year of income of a fund earlier than the 1994 - 95 year of income; or
(ii) continue to apply, despite their repeal, because of the Occupational Superannuation Standards Amendment Act 1993 ;
(b) the SIS Act.
(5) There shall be added to the period that, but for this subsection, would be his or her period of contributory service, such period as CSC determines as being appropriate, having regard to:
(a) the employer component of the transfer value; and
(b) such other matters as CSC considers relevant and such matters (if any) as are prescribed.
(6) For the purposes of this section:
(a) the employee component of a transfer value payable to or in respect of a person is the part (if any) of that transfer value that was based upon contributions made by the person; and
(b) the employer component of a transfer value payable to or in respect of a person is the part of that transfer value that was based upon contributions by an employer or employers of the person other than:
(i) an amount that was a productivity related benefit within the meaning of Part VIA or, if the transfer value payable to or in respect of the person does not include such an amount, an amount equal to the notional productivity amount; or
(ii) an amount that was the person's accumulated employer contributions included in a transfer value that was payable under Division 3 of Part IX to the person; or
(iii) if a benefit is payable in respect of the person under Part VIAB--an amount equal to the employer component of that benefit .
(7) If CSC gives under subsection 157(3) a direction to cancel an election made by an eligible employee under subsection (1) of this section, CSC must make such arrangements as it considers appropriate, taking into account the requirements of the SIS Act, for making payments out of the Superannuation Fund and the Consolidated Revenue Fund by way of dealing with the transferred amount (including the payment of interest on any part of that amount that was paid into the Superannuation Fund).
(7A) If, under an arrangement made by CSC under subsection (7), an amount has to be paid out of the Consolidated Revenue Fund, the Consolidated Revenue Fund is appropriated for the purpose of the payment.
(8) For the purposes of subparagraphs (2)(c)(i) and (6)(b)(i), the notional productivity amount , in relation to a transferred amount or a transfer value, is the amount equal to 3% of so much of a person's earnings as were relevant for the purpose of establishing whether, in relation to the period, or periods, of employment in respect of which the transferred amount or the transfer value, as the case may be, was payable, the employee was an employee in respect of whom one or more employers incurred an individual superannuation guarantee shortfall within the meaning of the Superannuation Guarantee (Administration) Act 1992 .