3BVery high income individuals

3B Very high income individuals

(1) This clause applies in relation to a member if: (a) the Commissioner of Taxation has given the member a release authority in respect of a debt account discharge liability; and (b) the CSC has been given the release authority; and (c) no benefits have been paid in accordance with subclause 6A(2) or rolled over in accordance with subclause 6A(3) (disregarding any benefits paid in accordance with paragraph 6(1)(c) or (d)).

Note 1: A release authority relates to the assessment of an amount of Division 293 tax (within the meaning of Division 293 of the Income Tax Assessment Act 1997). Section 293‑5 of that Act describes persons who are liable to pay Division 293 tax as very high income individuals.

Note 2: The CSC may be given the release authority by the member or the Commissioner of Taxation.

(2) The CSC must, as soon as practicable: (a) pay the debt account discharge liability set out in the release authority; and (b) ensure that the benefits that have not been paid to the member are reduced by the amount of the liability paid. (3) For subclause (2), the CSC must ensure that the reduction of the amount of the benefits, by the amount of the liability paid, occurs: (a) after any amount of the benefits is reduced by the surcharge deduction amount (if any); and (b) after the amount of the benefit is reduced in accordance with a payment split (if any). (4) The application of this Determination in relation to a member and a benefit is taken to be modified to the extent (if any) necessary to ensure that subclauses (2) and (3) are given effect.