25ATaxation on benefits

25A Taxation on benefits ***actuary*** means a person who is— (a) a fellow or an accredited member of the Institute of Actuaries of Australia; and (b) approved by the Minister; and (c) appointed by the Board as the actuary for the purpose of this section; ***affected member*** means in relation to a benefit reduction under subsection (2) or (3) a person who is a member of the Fund immediately before the date from which that reduction commences to apply; ***after-tax benefit*** means the amount of benefit after allowing for income tax calculated at the rates and in the manner as at the date of commencement of section 145 of the **Public Sector Superannuation (Administration) Act 1993** applicable to a person aged 55 years or more; ***detriment*** means receiving a lesser amount of after-tax benefit than would have been received if the benefit— (a) had not been reduced in accordance with subsections (2) and (3); and (b) had been an untaxed benefit; S. 25A(1) def. of *post-June 1983 component* amended by No. 120/1994 s. 5(b). ***post-June 1983 component*** has the same meaning as in section 27A of the tax law; ***rebatable 27H amount*** has the same meaning as in section 159SJ of the tax law; ***tax law*** means the Commonwealth Income Tax Assessment Act 1936; ***taxed element*** has the same meaning as in section 27A of the tax law; ***taxed*** in respect of a benefit means a benefit in relation to which there is a taxed element or a rebatable 27H amount as the case may be; ***untaxed*** in respect of a benefit means a benefit in relation to which there is no taxed element or rebatable 27H amount as the case may be. (2) If before the commencement of section 145 of the **Public Sector Superannuation (Administration) Act 1993** the Board determined that any part of the post-June 1983 component of a benefit paid or payable to a member of the Fund was to be classified for the purposes of the tax law as taxed, then the benefits accruing in respect of members of the Fund in relation to the period after 1 July 1993 (and any relevant maximum benefit) must be reduced on the basis determined by an actuary and approved by the Minister. (3) If at any time after the commencement of section 145 of the **Public Sector Superannuation (Administration) Act 1993** the Board determines that any part of the post-June 1983 component of a benefit paid or payable to a member of the Fund is to be classified for the purposes of the tax law as taxed, then the benefits (including any relevant maximum benefit) must be reduced on the basis determined by an actuary and approved by the Minister. (4) In addition to any other form of determination by the Board, the Board shall be deemed to have made a determination under subsection (2) or (3) if it fails to issue a relevant notice to a benefit recipient under the tax law classifying all of the post-June 1983 component of a benefit payable to a member of the Fund as untaxed. (5) In determining the basis of the reduction required under subsection (2) or (3), the actuary must aim to ensure as far as practicable that— (a) the cost of the Fund to employers participating in the Fund is not greater than what would have been the employer cost if the income of the Fund was from 1 July 1988 not subject to tax; and (b) no unreasonable detriment is caused to an affected member of the Fund. S. 25A(6) amended by No. 32/2005 s. 8(a). (6) If, having received an application from an affected member in accordance with subsection (7), the Board is satisfied that a reduction in benefits has resulted in any detriment to the member in respect of a benefit which has become payable to the member, the Board may take such steps, including without limitation increasing the benefit, as the Board considers necessary to avoid or compensate for that detriment. (7) An affected member may within 3 months of a benefit becoming payable from the Fund (or any longer period approved by the Board if the Board considers that there are special circumstances) apply to the Board for a review of the amount of the benefit. (8) The application must be in a form and contain and be accompanied by information prescribed by the Board. S. 25A(9) amended by No. 32/2005 s. 8(b). (9) The Board must not consider an application for review under this subsection on any ground other than detriment. S. 25A(10) amended by No. 32/2005 s. 8(c). (10) In determining whether any detriment exists and the extent of that detriment— (a) the Board must act on the advice of the actuary, given either generally or in any specific case; and (b) the actuary must have regard to the following factors— (i) the receipt by a member of a post-June 1983 component of the benefit classified for the purposes of the tax law as a taxed element rather than as an untaxed element; and (ii) the rates of tax and the basis for its assessment under the tax law as at the date of commencement of this Act in respect of a benefit that becomes payable to a person aged 55 years or more; and (iii) any other matters the actuary considers relevant. S. 25AA inserted by No. 32/2005 s. 9. 25AA No detriment provision ***actuary*** means a person who is— (a) a fellow or an accredited member of the Institute of Actuaries of Australia; and (b) approved by the Minister; and (c) appointed by the Board as the actuary for the purpose of this section; ***affected member*** means a person who becomes a contributor on or after 1 July 2005 and becomes entitled to a benefit part of which is subject to a determination made under section 25A(3); ***after-tax benefit*** has the same meaning as it has in section 25A; ***detriment*** means receiving a lesser amount of after-tax benefit than would have been received if the benefit had not been subject to a determination made under section 25A(3); ***post-June 1983 component*** has the same meaning as it has in section 25A; ***rebatable 27H amount*** has the same meaning as it has in section 25A; ***tax law*** has the same meaning as it has in section 25A; ***taxed element*** has the same meaning as it has in section 25A; ***taxed*** has the same meaning as it has in section 25A; ***untaxed*** has the same meaning as it has in section 25A. (2) If, having received an application from an affected member in accordance with subsection (3), the Board is satisfied that a reduction in benefits has resulted in a detriment to the member in respect of a benefit which has become payable to the member, the Board may take such steps, including without limitation increasing the benefit, as the Board considers necessary to avoid or compensate for that detriment. (3) An affected member may within 3 months of a benefit becoming payable from the Fund (or any longer period approved by the Board if the Board considers that there are special circumstances) apply to the Board for a review of the amount of the benefit. (4) The application must be in a form and contain and be accompanied by information required by the Board. (5) The Board must not consider an application for review under this subsection on any ground other than detriment. (6) In determining whether a detriment exists and the extent of that detriment— (a) the Board must act on the advice of the actuary, given either generally or in any specific case; and (b) the actuary must have regard to the following factors— (i) the receipt by a member of a post-June 1983 component of the benefit classified for the purposes of the tax law as a taxed element rather than as an untaxed element; and (ii) the rates of tax and the basis for its assessment under the tax law as at the commencement of section 145 of the **Public Sector Superannuation (Administration) Act 1993** in respect of a benefit that becomes payable to a person aged 55 years or more; and (iii) any other matters the actuary considers relevant. S. 25B inserted by No. 29/2000 s. 6.