Commutation of pension to meet surcharge liability
74CC Commutation of pension to meet surcharge liability
The power of commutation under this section applies if—
a person is receiving a pension under this Act; and
the person receives a notice of surcharge assessment on contributions made in respect of the person when he or she was a contributor from the Australian Taxation Office for which he or she is personally liable; and
the person makes an election in accordance with subsection (2).
The election must—
be made within the period of 3 months after the day on which the assessment is made; and
be made in a manner approved by the Board; and
authorise the Board to pay on the person's behalf the amount of the surcharge assessment directly to the Australian Taxation Office.
The Board must commute the person's pension to the extent determined by an actuary appointed by the Board to be necessary to pay the amount of the surcharge assessment.
The Board must advise the person in writing as to the actuary's determination.
The exercise of the power of commutation under this section does not affect the exercise of any other commutation rights under this Act.
S. 74D inserted by No. 102/1995 s. 21, amended by No. 36/2019 s. 13.
This Act’s bill:Second reading speech
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