Pension bonus to be absolutely inalienable
45US Pension bonus to be absolutely inalienable
A pension bonus is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise. This subsection has effect subject to subsections (2) and (3) and section 58J.
Deduction from bonus to pay tax debts that are unrelated to the bonus
The Commission may make a deduction from a pension bonus payable to a person if the person asks the Commission:
to make the deduction; and
to pay the amount to be deducted to the Commissioner of Taxation.
The Commission must make deductions from a person’s pension or pension bonus if requested by the Commissioner of Taxation—see section 58J.
Under the Income Tax Assessment Act 1997, pension bonus is exempt from income tax.
Deduction from bonus at recipient’s request
The Commission may make a deduction from a pension bonus payable to a person if the person consents under paragraph 205(2)(e) to the Commission making the deduction.
Paragraph 205(2)(e) enables the Commission to recover a debt from a person other than the debtor if the person is receiving a benefit under this Act.
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