49LLimit on amount that may be released

49L Limit on amount that may be released

(1) In addition to any requirements in Division 135 in Schedule 1 to the Taxation Administration Act 1953, the amount of a release authority lump sum must not have the effect that a benefit of the person under this Act is reduced below zero. (2) For the purpose of subsection (1), the effect of a release authority lump sum on the amount of a person’s benefit is to be worked out after taking account of any reduction under another provision of this Act, apart from the following: (a) a reduction under section 24 in relation to an amount not yet paid; (b) a reduction under section 32A in relation to an amount not yet paid.

Note: Other provisions that reduce a person’s benefit before a release authority lump sum include the following:

(a) subsections 23(6) and 31(4) (which deal with surcharge elections), if the election under section 124 is made before giving CSC the release authority (see subsection 124(3));
(b) subsections 75(3A) and (4A) (which deal with surcharge deduction amounts for deferred benefits);
(c) Part VIA (which deals with family law superannuation splitting).