State Superannuation Regulations 2001

A Gold State Super Member who will become liable to pay contributions tax as a result of a benefit becoming payable to the Member from the Gold State Super Scheme may, at any time before the benefit is paid, apply to the Board —

to receive part of the benefit in the form of a commutable pension; and

to fully commute that pension.

Subject to subregulation (5) when a benefit becomes payable to a Member who has made an application under subregulation (1) the Board is to —

estimate the amount of contributions tax the Member will become liable to pay (the estimated tax amount); and

withhold from the Member’s benefit an amount equal to the estimated tax amount; and

pay the balance of the benefit to the Member.

Interest accrues on an amount withheld under subregulation (2)(b) —

at a rate equal to the CPI rate plus 2%; and

from the day on which the benefit became payable to the day on which the withheld amount is paid under subregulation (4)(c); and

in a manner determined by the Board.

On receipt of a copy of the Member’s assessment notice the Board is to —

convert into a pension —

if the actual tax amount is less than the withheld amount — a portion of the withheld amount equal to the actual tax amount; or

otherwise — the whole of the withheld amount;

commute that pension; and

pay to the Member —

the lump sum resulting from the commutation of the pension; and

the balance (if any) of the withheld amount.

The Board may reject an application made under subregulation (1) if it is not satisfied that, if the application were accepted, the lump sum benefit that would become payable under subregulation (4)(c)(i) will be used to pay the contributions tax.

In this regulation —