Surcharge deduction amount
3A Surcharge deduction amount
If:
benefits become payable to or in respect of a member; and
the member’s surcharge debt account is in debit when those benefits became so payable;
the CSC must determine in writing the surcharge deduction amount that, in its opinion, it would be fair and reasonable to take into account in working out the amount of those benefits.
In making the determination, the CSC must have regard to the following:
the amount by which the member’s surcharge debt account is in debit when those benefits become payable;
the value of the employer‑financed component of those benefits;
the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997) the notional surchargeable contributions factors applicable to the member, were assumed to be likely to be payable to the member on his or her retirement;
whether the member has or had qualified for his or her maximum benefit entitlement under the DFRDB Act;
any other matter that the CSC considers relevant.
The amount determined by the CSC must not be more than the total of the following amounts:
15% of the employer‑financed component of any part of the benefits payable to the member that accrued in the period starting on 21 August 1996 and ending at the end of 30 June 2003;
14.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the period starting on 1 July 2003 and ending at the end of 30 June 2004;
12.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the period starting on 1 July 2004 and ending at the end of 30 June 2005.
Reductions under Division 3 of Part VIA of the DFRDB Act are to be disregarded in applying subclause (3).
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