Commonwealth Consolidated Acts Commonwealth Consolidated ActsDeferment of liability for surcharge
(1) This section makes provision for the deferment of the liability of a superannuation (unfunded defined benefits) provider to pay surcharge on the surchargeable contributions of a member of the relevant unfunded defined benefits superannuation scheme, and for interest to accrue on the deferred amount.
Accounts to be kept
(2) The provider must keep a surcharge debt account for each member.
Account to be debited for surcharge
(3) The provider must debit the account for surcharge assessed to be payable on the member's surchargeable contributions.
Interest to be debited
(4) If the member's account is in debit at the end of a financial year, the provider must debit the account for interest on the amount by which the account is in debit, calculated at the Treasury bond rate for the last day of the financial year for bonds with a 10 year term.
Rate of interest
(5) The Treasury bond rate for the last day of a financial year for bonds with a 10 year term is:
(a) if any Treasury bonds with that term were issued on that day--the annual yield on those bonds; or
(b) otherwise--the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.
Payment to be made when benefit becomes payable
(6) Subject to subsection (6A), when a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997 ) becomes payable by a superannuation provider for the benefit of a member whose account is in debit, the provider must pay to the Commissioner, within one month after the day on which the superannuation benefit becomes payable, the amount by which the account is in debit. The payment discharges the provider's liability for the surcharge.
(6A) If:
(a) a payment split applies to a splittable payment in respect of an interest that a person has as a member; and
(b) the splittable payment becomes payable in circumstances where the member's surcharge account is in debit;
then the superannuation provider concerned must pay to the Commissioner, within one month after the day the splittable payment became payable, the amount by which the account is in debit (which discharges the provider's liability for the surcharge).
Surcharge debt may be reduced
(7) The member may make payments to the provider for the purpose of reducing the amount by which the surcharge debt account is in debit.
(8) If a member makes a payment under subsection (7), the provider must:
(a) credit the payment to the surcharge debt account; and
(b) acknowledge receipt of the payment to the member; and
(c) advise the member of the revised balance of the surcharge debt account.
(9) A payment received by the provider under subsection (7) must be forwarded to the Commissioner within one month of receipt.
Offences
(10) A body corporate that contravenes this section commits an offence punishable on conviction by a fine of not more than 300 penalty units.
Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
(11) In this section:
"payment split" means a payment split within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975 .
"splittable payment" means a splittable payment within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975 .