Parliamentary Contributory Superannuation Act 1948

13 Contributions

14 Additional contributions by Ministers of State and office holders in respect of service before 12 June 1978

Part V—Benefits

14A Benefits to be paid by Commonwealth

15 Benefits applicable only to present and future members

15A Invalidity retirement

15B Invalidity classification

15C Review of invalidity classification

16 Commonwealth supplement

16A Superannuation guarantee safety‑net amount

17 Meaning of voluntary retirement

18 Benefits to members

18A Commutation of retiring allowance—payment of surcharge liability

18B Commutation of retiring allowance—general

19 Benefits to spouse

19AAA Commutation of spouse’s annuity—payment of surcharge liability

19AA Benefits in respect of orphaned children

19ABA Commutation of orphaned child’s annuity—payment of surcharge liability

19AB Benefits payable to personal representative

19A Additional benefit to Prime Minister

20 Re‑election to the Parliament

20A Members who were in the Parliament on 1 July 1994—recognition of prior service in a State or Territory Parliament

21 Reduction of benefits as a result of membership of a State Parliament, the Northern Territory Legislative Assembly or the A.C.T. Legislative Assembly

21AA Rate of benefits if there is more than one spouse

21B Effect of the holding of offices of profit—reduction of certain retiring allowances and annuities

22 Certain disqualifications

22A Determination with respect to surcharge deduction amount

22B Determination with respect to surcharge commutation amount

Part VAA—Family law superannuation splitting

22CA Definitions

22CB Basic service factor

22CC Additional service factor

Division 2—Benefits for non‑member spouse

22CD Associate annuity for non‑member spouse

22CE Associate deferred annuity

22CF Commutation of small associate annuity

Division 3—Reduction of benefits for member spouse

22CG Operative time during growth phase—reduction of lump sum

22CH Operative time during growth phase—reduction of retiring allowance

22CI Operative time during growth phase—reduction where original interest is entitlement to associate deferred annuity

22CJ Operative time during payment phase—reduction of standard allowance or annuity

Division 4—Miscellaneous

22CK Ministerial Orders

Part VA—Deferred payment of retiring allowance

22DA Definitions

22DB Members who are subject to deferral

22DC Deferral of retiring allowance

22DD Invalidity determination during deferral period

22DE Effect of invalidity determination

22DF Invalidity determination—application requirements

22DG Review of invalidity determination

22DH Review of invalidity determination—medical examination

22DI Other special payments during deferral period

Part VB—Preservation of rights of certain members

22Q Members who pay to Commonwealth transfer values received from previous employment

22R Special provisions affecting former participants in certain superannuation schemes

22S Power of Trust to vary determinations

Part VC—Division 293 and 296 tax laws

22SA Definitions

22SB Secretary treated as superannuation provider

Division 2—Release under a release authority

22SC Release of benefits under a release authority

22SD Limit on amount that may be released

22SE Calculation of benefits after payment of release authority lump sum

Part VI—Miscellaneous

22T Treatment of decreases in rates used to calculate retiring allowance

23 Notional salaries etc. for certain offices

24 Benefits not assignable

24AA Recoverable payments

24AB Recoverable death payments

24AC Reports about recoverable payments and recoverable death payments

24A Accrual of retiring allowances, annuities and contributions

24B Payment of retiring allowances and annuities

24C Revocation of elections or the exercise of options

24D Trust may give advice to members who are contemplating invalidity retirement

24E Trust may give advice to recipients of retiring allowances and annuities who are contemplating a commutation in order to pay surcharge

25 Review of decisions

26 Payment otherwise than to person entitled

26A Calculation of period of service in certain circumstances

26B Preservation of benefits and disclosure of information to members

26C Trustee of Scheme for purposes of the Superannuation Contributions Tax (Assessment and Collection) Act 1997

26D Appropriation for surcharge payable by the Trust

27 Appropriation

28 Regulations

29 Closing off the scheme constituted by this Act, and related matters

Schedule 1—Closing off the scheme constituted by this Act, and related matters

Part 1—Interpretation

1 Definitions

Part 2—Closing off contributions to the scheme

2 No section 13 contributions in respect of new scheme contribution periods

Part 3—Closing off entitlements to benefits under the scheme

Division 1—The close‑off

3 No section 18 benefits at the end of new scheme contribution periods etc.

Division 2—Situations in which a person is entitled to a retiring allowance, or additional retiring allowance, at a preserved percentage

4 Entitlement to a retiring allowance at a preserved percentage

5 Entitlement to an additional retiring allowance at a preserved percentage

Division 3—How this Act applies in relation to a person after the new scheme entry time

6 Act applies subject to this Division in relation to a person after the new scheme entry time

7 Disapplying sections 15A, 15B and 15C

8 Modified application of section 16A

9 Provisions applying instead of subsection 18(8A)

10 Provision applying instead of subsection 18(8AA)

11 Provisions applying instead of subsection 18(8AC)

12 Modified application of section 18A

13 Disapplying section 18B

14 Modified application of section 19

15 Modified application of section 20

16 Modified application of section 21AA

17 Modified application of section 21B

18 Modified application of Part VB

Endnotes

An Act to make Provision for Contributory Superannuation for Persons who have served as Members of the Parliament

Part I—Preliminary

1  Short title

  This Act may be cited as the Parliamentary Contributory Superannuation Act 1948.

2  Commencement

  This Act shall be deemed to have come into operation on 1 December 1948.

4  Interpretation

 (1) In this Act, unless the contrary intention appears:

allowance by way of salary means office holder’s salary (within the meaning of the Parliamentary Business Resources Act 2017), excluding any portion determined under paragraph 45(3)(b) of that Act as not being allowance by way of salary for the purposes of this Act.

annuity means annuity under this Act, including an associate annuity under section 22CD or 22CE.

assessment has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

class 1 invalid means a person who is classified by the Trust as a class 1 invalid under Part V.

class 2 invalid means a person who is classified by the Trust as a class 2 invalid under Part V.

class 3 invalid means a person who is classified by the Trust as a class 3 invalid under Part V.

Commonwealth supplement means the amount of the Commonwealth supplement ascertained in accordance with section 16.

contributions means contributions under Part IV.

CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.

Finance Department means the Department administered by the Finance Minister.

Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.

former spouse, in relation to another person, means a person who previously had had a marital or couple relationship with that other person.

House means a House of the Parliament.

life policy has the same meaning as in the Life Insurance Act 1995.

marital or couple relationship has the meaning given by section 4B.

medical practitioner means a person registered as a medical practitioner under a law of a State or Territory.

member means a member of either House.

Minister of State means a Minister of State who is entitled to a parliamentary allowance.

non‑parliamentary employment means any employment, profession or paid occupation, other than as a member.

office, in relation to a Minister of State, includes the following offices, namely:

 (a) Prime Minister;

 (b) Deputy Prime Minister;

 (c) Leader of the Government in the Senate;

 (d) Deputy Leader of the Government in the Senate;

 (e) Leader of the House;

 (f) Vice‑President of the Executive Council;

 (g) Minister of State Assisting another Minister of State;

 (h) an office, or an office included in a class of offices, prescribed for the purposes of this paragraph.

office holder means an office holder (within the meaning of the Parliamentary Business Resources Act 2017) to whom a parliamentary allowance is payable.

owner of a life policy has the same meaning as in the Life Insurance Act 1995.

parliamentary allowance means:

 (a) an allowance under:

 (i) section 3 of the Parliamentary Allowances Act 1920; or

 (ii) subsection 4(1) or 5(1) of the Parliamentary Allowances Act 1952, as in force at any time before the commencement of sections 169 and 170 of the Statute Law (Miscellaneous Amendments) Act (No. 1) 1982; or

 (b) an allowance by way of salary under section 4 of the Parliamentary Allowances Act 1952, as in force at any time before the commencement of the Parliamentary Business Resources Act 2017 (other than an allowance by way of salary payable by reason of the holding of a particular office, or the performing of particular functions in, or in relation to, the Parliament or either House); or

 (c) an allowance by way of salary under clause 1 of Schedule 3 to the Remuneration and Allowances Act 1990:

 (i) as in force before the commencement of Schedule 2 (the amending Schedule) to the Remuneration and Other Legislation Amendment Act 2011; or

 (ii) as continued in force by item 21 of the amending Schedule; or

 (d) parliamentary base salary (within the meaning of the Remuneration Tribunal Act 1973, as in force at any time before the commencement of the Parliamentary Business Resources Act 2017), excluding any portion determined in a determination that is in force under subsection 7(1A) of the Remuneration Tribunal Act 1973 at any time before that commencement; or

 (e) base salary (within the meaning of the Parliamentary Business Resources Act 2017), excluding any portion determined under paragraph 45(3)(a) of that Act as not being parliamentary allowance for the purposes of this Act.

participant, in relation to a superannuation scheme applying in relation to any employment, means any person employed in that employment in respect of whom benefits are applicable under the scheme by reason of his or her being so employed, whether or not he or she has made contributions under the scheme.

partner: a person is the partner of another person if the two persons have a relationship as a couple (whether the persons are the same sex or different sexes).

period of service, in relation to a person, means (subject to section 20) the period, or the sum of the periods (whether continuous or not), whether before or after the commencement of this Act, during which the person was entitled to parliamentary allowance, and includes any period by which the period of service of the person is deemed to be increased by virtue of subsection 22Q(4).

retiring allowance, in relation to a person, means the retiring allowance payable to the person under this Act and, in the case of a person who ceased or ceases to be a member after 30 June 1980, includes additional retiring allowance (if any) payable to the person under subsection 18(9).

salary, in relation to a Minister of State, means Ministerial salary (within the meaning of the Parliamentary Business Resources Act 2017), excluding any portion determined under subsection 45(5) of that Act as not being salary for the purposes of this Act.

spouse has a meaning affected by section 4C.

superannuation guarantee safety‑net amount has the meaning given by section 16A.

surcharge has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

surchargeable contributions means surchargeable contributions (within the meaning of the Superannuation Contributions Tax (Assessment and Collection) Act 1997) that are attributable to the operation of this Act.

surcharge debt account, in relation to a person who has held office as a member, means the surcharge debt account that was kept for the person (while he or she held that office) under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and that related to the person’s surchargeable contributions.

surcharge deduction amount, in relation to a person:

 (a) who has held office as a member; and

 (b) to or in respect of whom benefits become payable under this Act;

means the surcharge deduction amount that is specified in the determination made by the Trust, under section 4E, in relation to the person.

Trust means the Parliamentary Retiring Allowances Trust established under this Act.

trustee means one of the trustees who constitute the Trust, and includes a Minister performing the powers and functions of the Finance Minister as a trustee.

 (2) A reference in this Act to the contributions of a person does not include a reference to any contributions that have been refunded to him or her and have not been repaid by him or her.

 (3) A reference in this Act to a superannuation scheme shall be read as a reference to a superannuation or retirement scheme, however established, other than the retirement scheme constituted by the provisions of this Act.

 (4) For the purposes of this Act, a benefit payable to or in respect of a member under a superannuation scheme shall not be taken to have been based partly on contributions under the scheme by the employer by reason only that the benefit included interest upon contributions made under the scheme by the member.

 (4A) For the purposes of this Act:

 (aa) a member is taken to be employed by the Commonwealth; and

 (a) a member of the Parliament of a State is taken to be employed by the State; and

 (b) a member of the Legislative Assembly for the Australian Capital Territory is taken to be employed by the Australian Capital Territory; and

 (c) a member of the Legislative Assembly of the Northern Territory of Australia is taken to be employed by the Northern Territory of Australia.

 (5) A person shall, for the purposes of this Act, be taken to be, or to have been, entitled to parliamentary allowance during any period in respect of which the person is or was, as the case may be, entitled to be paid parliamentary allowance by virtue of:

 (a) section 4 or 5 of the Parliamentary Allowances Act 1920;

 (b) subsection 4(3) or (4) or 5(4) or (5) of the Parliamentary Allowances Act 1952, as in force at any time before the commencement of sections 169 and 170 of the Statute Law (Miscellaneous Amendments) Act (No. 1) 1982; or

 (c) section 5 or 5A of the Parliamentary Allowances Act 1952, as in force at any time before the commencement of the Parliamentary Business Resources Act 2017; or

 (d) section 49 of the Parliamentary Business Resources Act 2017.

 (6) For the purposes of this Act, if a person ceases to be entitled to a parliamentary allowance, the cessation is taken to be an invalidity retirement if, and only if, the Trust makes a determination under section 15A in relation to that cessation.

4A  Transfer value payable in respect of previous employment

 (1) In this Act:

 (a) a reference, in relation to a member, to a transfer value payable to or in respect of the member under a superannuation scheme applicable in relation to any employment in which he or she was employed at any time before the date on which he or she became a member is a reference to a benefit by way of a lump sum payable to or in respect of the member under that scheme upon the termination of the employment otherwise than on the ground of invalidity or of physical or mental incapacity to perform the duties of the employment, being a benefit that was based wholly upon contributions under the scheme by the employer or was based partly upon such contributions and partly upon contributions under the scheme by the member; and

 (b) a reference to the amount of a transfer value:

 (i) if the transfer value was based in part upon an amount or amounts paid to or in respect of the member under this Act—is a reference to so much only of the lump sum constituting the transfer value as exceeded that amount or the total of those amounts; and

 (ii) does not include a reference to any part of the lump sum constituting the transfer value that was based upon contributions by the member that were, or were of a similar nature to, contributions under the Superannuation Act 1922 for reserve units of pension or contributions under section 48 of the Superannuation Act 1976; and

 (iii) does not include a reference to any part of the lump sum constituting the transfer value that was based upon any excess contribution multiple within the meaning of the Superannuation Act 1990 of the member.

 (2) If, after a transfer value became payable to or in respect of a person under a superannuation scheme, the whole or any part of that transfer value was paid to a person administering another superannuation scheme:

 (a) where the whole of the transfer value was so paid—that transfer value shall be disregarded for the purposes of this Act; or

 (b) where part of the transfer value was so paid—the amount of that transfer value shall be deemed, for the purposes of this Act, to be reduced by the amount so paid.

 (3) Subject to subsection (4), a transfer value shall be deemed for the purposes of this Act to have become payable in respect of a person under a superannuation scheme upon the termination of any employment if, upon the termination of that employment, the person was the owner of a life policy, or was entitled to have the rights of the owner of a life policy assigned to him or her, being a policy the premiums for which were, while the person was employed in that employment, paid in whole or in part by the person’s employer, and, in that case, the surrender value of the policy as at the date of the termination of the employment shall be taken to be the amount of the transfer value.

 (4) Where a transfer value is, by virtue of subsection (3), deemed for the purposes of this Act to have become payable in respect of a person upon the termination of any employment by reason that, upon the termination of that employment, the person was the owner of a life policy, or was entitled to have the rights of the owner of a life policy assigned to him or her, a transfer value shall not be deemed, for those purposes, to have become payable in respect of the person upon the termination of any previous employment by reason that, upon the termination of that previous employment, the person was the owner of that policy, or was entitled to have the rights of the owner of that policy assigned to him or her.

4B  Marital or couple relationship

 (1) For the purposes of this Act, a person had a marital or couple relationship with another person at a particular time if the person ordinarily lived with that other person as that other person’s husband, wife, spouse or partner on a permanent and bona fide domestic basis at that time.

 (2) For the purpose of subsection (1), a person is to be regarded as ordinarily living with another person as that other person’s husband, wife, spouse or partner on a permanent and bona fide domestic basis at a particular time only if:

 (a) the person had been living with that other person as that other person’s husband, wife, spouse or partner for a continuous period of at least 3 years up to that time; or

 (b) the person had been living with that other person as that other person’s husband, wife, spouse or partner for a continuous period of less than 3 years up to that time and the Trust, having regard to any relevant evidence, is of the opinion that the person ordinarily lived with that other person as that other person’s husband, wife, spouse or partner on a permanent and bona fide domestic basis at that time;

whether or not the person was legally married to that other person.

 (3) For the purposes of this Act, a marital or couple relationship is taken to have begun at the beginning of the continuous period mentioned in paragraph (2)(a) or (b).

 (4) For the purpose of subsection (2), relevant evidence includes, but is not limited to, evidence establishing any of the following:

 (a) the person was wholly or substantially dependent on that other person at the time;

 (b) the persons were legally married to each other at the time;

 (ba) the persons’ relationship was registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901, as a kind of relationship prescribed for the purposes of that section;

 (c) the persons had a child who was:

 (i) born of the relationship between the persons; or

 (ii) adopted by the persons during the period of the relationship; or

 (iii) a child of both of the persons within the meaning of the Family Law Act 1975;

 (d) the persons jointly owned a home which was their usual residence.

 (5) For the purposes of this section, a person is taken to be living with another person if the Trust is satisfied that the person would have been living with that other person except for a period of:

 (a) temporary absence; or

 (b) absence because of the person’s illness or infirmity.

4C  Spouse who survives a deceased person

 (1) In this section:

deceased person means a person who was, at the time of his or her death:

 (a) a person who was entitled to a parliamentary allowance; or

 (b) a person who was entitled to a retiring allowance, whether or not the retiring allowance was immediately payable.

retired member means a person who was entitled to a retiring allowance, whether or not the retiring allowance was immediately payable.

 (2) For the purposes of this Act, a person is a spouse who survives a deceased person if:

 (a) the person had a marital or couple relationship with the deceased person at the time of the death of the deceased person (the death); and

 (b) in the case of a deceased person who was a retired member at the time of the death:

 (i) the marital or couple relationship began before the retired member became a retired member; or

 (ii) the marital or couple relationship began after the retired member became a retired member but before the retired member reached 60; or

 (iii) in the case of neither subparagraph (i) nor (ii) applying—the marital or couple relationship had continued for a period of at least 5 years up to the time of the death.

 (3) In spite of subsection (2), a person is taken to be a spouse who survives a deceased person if:

 (a) the person had previously had a marital or couple relationship with the deceased person; and

 (b) the person did not, at the time of the death, have a marital or couple relationship with the deceased person but was legally married to the deceased person; and

 (c) in the case of a marital or couple relationship that began after the deceased person became a retired member and reached 60—the relationship began at least 5 years before the deceased person’s death; and

 (d) in the Trust’s opinion, the person was wholly or substantially dependent upon the deceased person at the time of the death.

4D  Incapacity

  In determining the percentage of a person’s incapacity in relation to non‑parliamentary employment, the Trust or a medical practitioner, as the case may be, must have regard to all relevant matters, including, but not limited to, the following:

 (a) the vocational, trade and professional skills, qualifications and experience of the person;

 (b) the kinds of non‑parliamentary employment which a person with the skills, qualifications and experience referred to in paragraph (a) might reasonably undertake;

 (c) the degree to which any physical or mental impairment of the person has diminished his or her capacity to undertake the kinds of non‑parliamentary employment referred to in paragraph (b);

 (d) the income (if any) derived by the person from personal exertion.

4E  Surcharge deduction amount

 (a) benefits under this Act become payable to or in respect of a person who has held office as a member; and

 (b) the person’s surcharge debt account is in debit when those benefits become so payable;

the Trust must determine in writing the surcharge deduction amount that, in its opinion, it would be fair and reasonable to take into account in working out the amount of those benefits.

 (2) In making the determination, the Trust must have regard to the following:

 (a) the amount by which the person’s surcharge debt account is in debit when those benefits become payable;

 (b) the value of the employer‑financed component of those benefits;

 (c) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997) the notional surchargeable contributions factors applicable to the person, were assumed to be likely to be payable to the person under this Act on his or her ceasing to hold office as a member;

 (d) whether the person has or had qualified for his or her maximum benefit entitlement under this Act;

 (e) any other matter that the Trust considers relevant.

 (3) The amount determined by the Trust may not be more than the total of the following amounts:

 (a) 15% of the employer‑financed component of any part of the benefits payable to the person that accrued between 20 August 1996 and 1 July 2003;

 (b) 14.5% of the employer‑financed component of any part of the benefits payable to the person that accrued in the 2003‑2004 financial year;

 (c) 12.5% of the employer‑financed component of any part of the benefits payable to the person that accrued in the 2004‑2005 financial year.

 (4) Reductions under Division 3 of Part VAA are to be disregarded in applying subsection (3).

4F  Application of the Criminal Code

  Chapter 2 of the Criminal Code applies to all offences against this Act.

Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Part II—The Parliamentary Retiring Allowances Trust

5  The Parliamentary Retiring Allowances Trust

 (1) There shall be a body to be called the Parliamentary Retiring Allowances Trust.

 (2) The Trust shall be a body corporate with perpetual succession and a common seal, and shall be capable of holding and disposing of property and of suing and being sued in its corporate name.

 (3) The Trust shall be constituted by 5 trustees, namely:

 (a) the Finance Minister;

 (b) 2 senators; and

 (c) 2 members of the House of Representatives.

 (4) The powers and functions of the Finance Minister as a trustee may be exercised by any Minister thereunto authorized in writing by the Finance Minister, but no such authorization shall prevent the exercise of those powers and functions by the Finance Minister himself or herself.

 (5) A vacancy in the office of a trustee shall not invalidate the proceedings of the trustees.

 (6) The seal of the Trust shall not be attached to any document except in accordance with a resolution of the trustees, and shall be authenticated by the signatures of 2 trustees.

6  Appointment of certain trustees

 (1) The trustees specified in paragraphs 5(3)(b) and (c) shall be appointed, and may be removed, by the House of which they are members.

 (2) A trustee appointed under subsection (1) who has ceased to be a senator or a member of the House of Representatives (as the case may be), by reason of the dissolution or expiration of the House of which he or she was a member, shall not thereby cease to be a trustee until he or she ceases to be entitled to parliamentary allowance.

7  Temporary trustees

 (1) If a vacancy occurs in the office of a trustee, the Governor‑General may appoint a trustee to hold office until the vacancy is otherwise filled.

8  Meetings of the trustees

 (1) The affairs of the Trust shall be conducted at meetings of the trustees.

 (2) At all meetings of the trustees, 3 trustees shall form a quorum.

 (3) The Finance Minister (or a Minister exercising the powers and functions of the Finance Minister as a trustee) shall preside at any meeting of the trustees at which he or she is present and, if neither the Finance Minister nor such a Minister is present at a meeting, the trustees present shall elect one of their number to preside at that meeting.

 (4) A majority of the trustees present at a meeting shall have power to bind the Trust and to pass resolutions of the trustees, and, if the number of trustees present is 4, the trustee presiding and one other trustee shall also have power to bind the Trust and to pass such resolutions.

 (5) The Secretary of the Finance Department, or an officer of the Finance Department appointed by him or her for the purpose, shall attend meetings of the trustees and give such advice and assistance as the trustees require.

8A  Resolutions without meetings

 (1) The trustees are taken to have passed a resolution at a meeting and may bind the Trust if:

 (a) without meeting, a majority of the trustees indicate agreement with the resolution; and

 (b) that agreement is indicated in accordance with the method determined by the trustees under subsection (2); and

 (c) all the trustees were informed of the proposed resolution, or reasonable efforts were made to inform all the trustees of the proposed resolution.

 (2) Subsection (1) applies only if the trustees:

 (a) have determined that they may pass resolutions of that kind without meeting; and

 (b) have determined the method by which trustees are to indicate agreement with proposed resolutions.

9  Delegation

 (1) The Trust may, either generally or as otherwise provided by the instrument of delegation, by writing under its common seal, delegate to a trustee any of its powers or functions under this Act, other than this power of delegation.

 (2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act, be deemed to have been exercised or performed, as the case may be, by the Trust.

 (3) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Trust.

Part IV—Contributions

13  Contributions

 (1) A person who is entitled to a parliamentary allowance shall, during his or her period of service, pay contributions to the Commonwealth:

 (a) in the case of a person whose period of service is less than 18 years—at the rate per fortnight of 11.5% of the fortnightly amount of the parliamentary allowance payable to the person; or

 (b) in the case of a person whose period of service is not less than 18 years—at the rate per fortnight of 5.75% of the fortnightly amount of the parliamentary allowance payable to the person.

 (1A) For the purposes of paragraph (1)(a) or (b), the fortnightly amount of the parliamentary allowance payable to the person is to be worked out in accordance with regulations made for the purposes of this subsection.

 (2) Subject to subsection (4), a Minister of State shall, in addition to the contributions payable by him or her under subsection (1), pay contributions to the Commonwealth, during the period during which he or she serves as a Minister of State, at the rate per fortnight of 11.5% of the fortnightly amount of the salary to which he or she is entitled as Minister of State.

 (3) Subject to subsection (4), an office holder shall, in addition to the contributions payable by him or her under subsection (1), pay contributions to the Commonwealth, during the period during which he or she serves as, and in respect of each office by virtue of which he or she is, an office holder, at the rate per fortnight of 11.5% of the fortnightly amount of the allowance by way of salary payable to the person because the person holds that office.

 (3A) For the purposes of subsection (3), the fortnightly amount of the allowance by way of salary payable to the person because the person holds that office is to be worked out in accordance with regulations made for the purposes of this subsection.

 (4) If, at any time, a Minister of State or an office holder would, if he or she ceased to be entitled to parliamentary allowance at that time, be entitled to additional retiring allowance under subsection 18(9) at a rate which is:

 (a) in a case where he or she would be entitled to additional retiring allowance in respect of one office only—75% of the rate, at that time, at which salary or allowance by way of salary, as the case may be, is payable in respect of that office; or

 (b) in a case where he or she would be entitled to additional retiring allowance in respect of 2 or more offices—75% of the rate that is the highest rate, at that time, at which salary or allowance by way of salary, as the case may be, is payable in respect of either or any of those offices;

then, so long as he or she continues to be a Minister of State who, or an office holder who, would, if he or she ceased to be entitled to parliamentary allowance, be entitled to additional retiring allowance under that subsection at that rate, subsection (2) or (3), as the case may be, applies to him or her as if the reference to 11.5% in whichever of those subsections is applicable were a reference to 5.75%.

 (6) The contributions payable by a person under this section shall be deducted:

 (a) in the case of contributions under subsection (1)—from payments of parliamentary allowance made to the person;

 (b) in the case of contributions under subsection (2)—from payments of parliamentary allowance made to the person or of salary made to the person as Minister of State; and

 (c) in the case of contributions under subsection (3)—from payments of parliamentary allowance made to the person or of allowance by way of salary made to the person as office holder.

 (7) Each deduction under subsection (6) shall, as far as practicable, be made in respect of the same period as that in respect of the payment from which it is deducted is made.

 (8) Amounts deducted under subsection (6) shall be paid to the Commonwealth.

 (9) The regulations may make modifications of this Act that are required as a result of the amendments of the Parliamentary Business Resources Act 2017 made by Schedule 4 to the Parliamentary Business Resources Legislation Amendment (Review Implementation and Other Measures) Act 2024.

14  Additional contributions by Ministers of State and office holders in respect of service before 12 June 1978

 (1) A reference in this section to a period during which a person served as a Minister of State or an office holder does not include a reference to any period that does not also form part of the period of service of the person for the purposes of this Act.

 (2) Where a person who is a member on 12 June 1978 served as a Minister of State or an office holder during any period or periods, or as a Minister of State and an office holder during different periods, before that date, he or she may, within 3 months after that date, by notice in writing signed by the person and delivered personally or sent by post to the Secretary of the Finance Department, elect to have the whole of that period or of those periods taken into account for the purposes of subsection 18(9).

 (3) Where a person, not being a person who is a member on 12 June 1978, becomes a member after that date and that person served as a Minister of State or an office holder during any period or periods, or as a Minister of State and an office holder during different periods, before that date, he or she may, within 3 months after the date on which he or she so becomes a member, by notice in writing signed by the person and delivered personally or sent by post to the Secretary of the Finance Department, elect to have the whole of that period or of those periods taken into account for the purposes of subsection 18(9).

 (4) A person who makes an election in accordance with subsection (2) or (3) shall:

 (a) if he or she received any refund of contributions under Part VA of the Parliamentary Retiring Allowances Act 1948‑1964, or of that Act as amended, not being a refund that was subsequently repaid by him or her under section 22M of that Act, or of that Act as amended, or received any refund of contributions under subsection 22(12) or (13) of the Parliamentary and Judicial Retiring Allowances Act 1973—pay to the Commonwealth an amount equal to that refund (excluding any part of that refund that comprises contributions made in respect of a period to which subsection 19A(7) applies); and

 (b) if, during the period that commenced on 8 June 1973 and ended on 11 June 1978, he or she served as a Minister of State or an office holder during any period or periods, or as a Minister of State and an office holder during different periods—pay to the Commonwealth an amount equal to 111/2% of the sum of:

 (i) the total of the amounts of salary to which he or she was entitled as Minister of State in respect of the period or periods (if any) during which he or she so served as a Minister of State; and

 (ii) the total of the amounts of allowance by way of salary to which he or she was entitled as office holder in respect of the period or periods (if any) during which he or she so served as an office holder.

 (5) If, but for this subsection, subsection 22(2) of the Parliamentary and Judicial Retiring Allowances Act 1973 would apply to and in respect of a person who makes an election under this section, that subsection ceases to apply to and in respect of him or her when the election is made.

 (6) Any amounts payable to the Commonwealth by a person under this section shall be paid at such times and in such amounts as are agreed upon between the person and the Finance Minister or, in the absence of agreement, at such times and in such amounts as the Finance Minister determines, but so that the total of the amounts is paid to the Commonwealth within 3 years after the date on which the person made the relevant election under this section.

 (7) If a person who has made an election under this section becomes entitled to a retiring allowance and, after becoming so entitled, elects under subsection 18B(3) to convert a percentage of that retiring allowance into a lump sum payment, there shall be deducted from the amount of that lump sum payment the amount (if any) by which the total of the amounts that the person is liable to pay to the Commonwealth under subsection (4) of this section exceeds the total of any of those amounts that the person has paid in accordance with subsection (6) of this section and, upon the deduction being made, the person is, to the extent of the amount deducted, discharged from further liability to make payments under this section.

Part V—Benefits

14A  Benefits to be paid by Commonwealth

  Payments in respect of benefits (including refunds of contributions) provided for by this Act shall be made by the Commonwealth.

15  Benefits applicable only to present and future members

  Subject to section 19A, retiring allowances, annuities and other benefits under this Act shall be payable only to or in relation to persons who are members at the commencement of this Act or become members thereafter.

15A  Invalidity retirement

 (1) This section applies to a person who:

 (a) ceases to be a member because of his or her having resigned his or her place before the expiration of his or her term of office; or

 (b) ceases to be a senator upon the expiration of the term of office of a class of senators or the dissolution of the Senate and is not, at the time of an election to fill places in the Senate that became vacant when his or her place becomes vacant:

 (i) a candidate for election as a senator; or

 (ii) if elections of members of the House of Representatives are held, or an election of a member of the House of Representatives is held, at the same time as such a Senate election—a candidate for election either as a senator or as a member of the House of Representatives; or

 (c) ceases to be a member of the House of Representatives upon the dissolution or expiration of that House and is not, at the time of the next ensuing elections for the House of Representatives:

 (i) a candidate for election to that House; or

 (ii) if elections of senators are held, or an election of a senator is held, at the same time as those elections for that House—a candidate for election either as a senator or as a member of the House of Representatives; or

 (d) ceases to be a senator because of the election of a successor under section 15 of the Constitution and is not, at the time of the election at which his or her successor is elected:

 (i) a candidate for election as a senator; or

 (ii) if his or her successor is elected at a general election of members of the House of Representatives—a candidate for election either as a senator or as a member of the House of Representatives.

Invalidity retirement

 (2) The Trust may determine that the person’s resignation or failure to be such a candidate is to be treated as an invalidity retirement if:

 (a) a written application is made by or on behalf of the person for such a determination; and

 (b) the Trust is satisfied that the person is unlikely, because of physical or mental impairment, ever to be able to perform the duties of a member again.

The determination must specify the physical or mental impairment or impairments concerned.

Application to be accompanied by medical certificates

 (3) The application must be accompanied by:

 (a) such additional information (if any) as the Trust requires; and

 (b) a certificate given by a medical practitioner nominated by the Trust; and

 (c) a certificate given by a medical practitioner nominated by or on behalf of the person; and

 (d) such additional documents (if any) as the Trust requires.

Medical certificates—contents

 (4) Each certificate must include:

 (a) a statement to the effect that, in the opinion of the medical practitioner concerned, the person is unlikely, because of physical or mental impairment, ever to be able to perform the duties of a member again; and

 (b) a statement setting out the medical practitioner’s opinion about the percentage of the person’s incapacity in relation to non‑parliamentary employment.

Consultation about nominated medical practitioner

 (5) The Trust must consult a Senior Commonwealth Medical Officer about the identity of a medical practitioner nominated under paragraph (3)(b).

Trust to notify applicant of decision

 (6) If the Trust makes a decision refusing an application under subsection (2), the Trust must give the applicant a written notice of the refusal.

15B  Invalidity classification

 (1) This section applies if the Trust determines under subsection 15A(2) that a person’s resignation or failure to be a candidate, as the case may be, is to be treated as an invalidity retirement.

Trust to determine percentage of incapacity

 (2) The Trust must determine the percentage of the person’s incapacity in relation to non‑parliamentary employment.

Trust to classify person

 (3) The Trust must also classify the person in accordance with the following table:

• Table
• % of incapacity Classification
• 60% or more Class 1 invalid
• 30% or more but less than 60% Class 2 invalid
• Less than 30% Class 3 invalid

Trust to notify person of classification

 (4) If the Trust makes a decision under this section, it must give the person a written notice setting out the decision.

15C  Review of invalidity classification

Persons to whom section applies

 (1) This section applies to a person if the person is entitled to a retiring allowance under paragraph 18(2AA)(c) or (d).

Review of invalidity classification

 (2) The Trust may, from time to time, review the person’s current classification as a class 1 invalid or a class 2 invalid, as the case may be.

How review is initiated

 (3) The Trust may review the person’s classification:

 (a) on its own initiative; or

 (b) if it is requested to do so by or on behalf of the person.

Request for review

 (4) A request under paragraph (3)(b) must:

 (a) be in writing; and

 (b) be accompanied by:

 (i) a written submission in support of the request; and

 (ii) a certificate given by a medical practitioner nominated by or on behalf of the person.

Medical certificate in support of request for review

 (5) The certificate mentioned in subsection (4) must set out the medical practitioner’s opinion about the percentage of the person’s incapacity in relation to non‑parliamentary employment.

Notification of refusal of request for review

 (6) If the Trust makes a decision refusing a request under paragraph (3)(b), the Trust must give the person a written notice of the refusal.

Trust may request attendance at a medical examination

 (7) For the purposes of the review, the Trust may, by written notice given to the person, request the person:

 (a) to submit himself or herself for medical examination by a specified medical practitioner at a time and place specified in the notice; or

 (b) to give to the Trust, within the period specified in the notice, specified information that is relevant to the review; or

 (c) to produce to the Trust, within the period specified in the notice, specified documents that are relevant to the review.

Multiple notices

 (8) The Trust may give 2 or more notices under subsection (7) in relation to the review.

Senior Commonwealth Medical Officer to be consulted about medical practitioners

 (9) The Trust must consult a Senior Commonwealth Medical Officer about the identity of a medical practitioner specified in a notice under subsection (7).

Consequences of failure to attend medical examination, to give information or to produce documents

 (10) If the person fails to comply with a notice under subsection (7), the Trust may, by written notice given to the person, suspend the person’s retiring allowance with effect from a specified date. The date must not be earlier than the day on which the notice was given.

Reimbursement of reasonable expenses incurred in attending medical examination

 (11) If:

 (a) the person submits himself or herself for medical examination in accordance with a notice under subsection (7); and

 (b) the person incurs, in respect of attendance at that examination, expenses in respect of:

 (i) transport; or

 (ii) accommodation; or

 (iii) the purchase of food or drink; or

 (iv) incidental matters;

the Trust may determine that the person is entitled to be paid by the Commonwealth an amount equal to so much of those expenses as the Trust considers reasonable. The Consolidated Revenue Fund is appropriated for the purposes of this subsection.

Decision on review

 (12) For the purposes of the review, the Trust must make a decision:

 (a) confirming the person’s classification; or

 (b) if the person is a class 1 invalid—re‑classifying the person as a class 2 invalid or as a class 3 invalid; or

 (c) if the person is a class 2 invalid—re‑classifying the person as a class 1 invalid or as a class 3 invalid.

The re‑classification must be in accordance with the classification table set out in section 15B according to the percentage of the person’s incapacity in relation to non‑parliamentary employment.

Decision on review to be made on the basis of the original physical or mental impairment

 (13) In determining, for the purposes of this section, the percentage of the person’s incapacity in relation to non‑parliamentary employment, the Trust or a medical practitioner, as the case may be, is to ignore any physical or mental impairment of the person unless the impairment is of a kind that:

 (a) was specified in the determination made under section 15A in relation to the person; or

 (b) is related to an impairment of a kind that was specified in that determination.

When re‑classification takes effect

 (14) If the Trust decides to re‑classify the person, the Trust must specify a date as the date on which the re‑classification takes effect. The date must not be earlier than the date on which the decision was made.

Re‑classification to be treated as a classification

 (15) If the Trust decides to re‑classify the person, the Trust is taken to have classified the person accordingly on the day on which the re‑classification takes effect.

Notification of decision on review

 (16) If the Trust makes a decision under subsection (12), the Trust must give the person a written notice setting out the decision.

Re‑classification as a class 3 invalid—reduction of benefit

 (17) If the Trust decides to re‑classify the person as a class 3 invalid, the benefit payable to the person under paragraph 18(2AA)(e) is to be reduced (but not below 0) by the total of the payments of retiring allowance paid to the person under paragraph 18(2AA)(c) or (d) before the re‑classification took effect.

16  Commonwealth supplement

 (1) For the purposes of this Act, the amount of the Commonwealth supplement, in relation to a member or former member, shall, subject to this section, be 21/3 times the contributions paid by him or her during his or her period of service or, if that period exceeds 8 years, during the last 8 years thereof.

 (1A) Any amounts paid by a person to the Commonwealth under section 14 shall be deemed to be contributions paid by him or her during his or her period of service, or during the last 8 years of his or her period of service, to the extent that those amounts relate to:

 (a) in the case of amounts paid in pursuance of paragraph 14(4)(a)—contributions (other than a repayment of a refund) made during his or her period of service, or during those last 8 years of his or her period of service, as the case may be, under Part VA of the Parliamentary Retiring Allowances Act 1948‑1964 or of that Act as amended; and

 (b) in the case of amounts paid in pursuance of paragraph 14(4)(b)—any period occurring during his or her period of service, or during those last 8 years of his or her period of service, as the case may be.

 (2) For the purpose of ascertaining the Commonwealth supplement in relation to a person who was a member at the date of commencement of the Parliamentary Retiring Allowances Act 1948, he or she shall be deemed to have paid (in addition to the contributions which he or she has paid) the contributions which would have been payable by him or her before the date of commencement of that Act if that Act had commenced at the beginning of his or her period of service.

 (3) For the purpose of ascertaining the Commonwealth supplement in relation to a person who paid contributions in accordance with paragraph 13(1)(b), he or she shall be deemed to have paid (in addition to the contributions that he or she has paid under that paragraph and any other contributions that he or she has paid) further contributions equal to the contributions that he or she paid under that paragraph.

 (4) For the purpose of ascertaining the Commonwealth supplement in relation to a person who paid contributions in accordance with subsection 13(2) as that subsection has effect by virtue of subsection 13(4), subsection 13(3) as that subsection has effect by virtue of subsection 13(4) or both those subsections as they so have effect, he or she shall be deemed to have paid, in addition to the contributions that he or she so paid (in this subsection referred to as the relevant contributions) and any other contributions that he or she paid, further contributions equal to the relevant contributions.

16A  Superannuation guarantee safety‑net amount

Superannuation guarantee safety‑net amount

 (1A) The superannuation guarantee safety‑net amount, in relation to a person, is the greater of:

 (a) the amount worked out under subsection (1); and

 (b) the amount worked out under subsection (1AA).

 (1) For the purposes of paragraph (1A)(a), the amount is the sum of the following amounts:

 (a) the contributions made by the person during so much of the person’s period of service as occurred after 30 June 1992;

 (b) the interest that would have accrued on the contributions covered by paragraph (a) if it were assumed that:

 (i) the contributions had been member contributions made under the superannuation scheme established by deed under the Superannuation Act 1990; and

 (ii) interest on those contributions had accrued in accordance with determinations by CSC under that scheme as to rates of interest and the method of allocating interest; and

 (iii) no interest on those contributions had accrued during any period when the person was not entitled to a parliamentary allowance;

 (c) the total of the minimum amounts that the Commonwealth would have had to contribute to a complying superannuation fund or scheme for the benefit of the person in order to avoid having any individual superannuation guarantee shortfalls in respect of the person if it were assumed that:

 (i) the only capacity in which the person was, or had ever been, an employee of the Commonwealth (within the meaning of the Superannuation Guarantee (Administration) Act 1992) were the person’s capacity as a member (see subsection 12(4) of that Act); and

 (ii) the scheme constituted by the provisions of this Act did not exist; and

 (iii) those contributions were made on a monthly basis before the changeover day; and

 (iv) those contributions were made on a fortnightly basis after the changeover day;

 (d) the interest that would have accrued on the contributions covered by paragraph (c) if it were assumed that:

 (i) the contributions had been member contributions made under the superannuation scheme established by deed under the Superannuation Act 1990; and

 (ii) interest on those contributions had accrued in accordance with determinations by CSC under that scheme as to rates of interest and the method of allocating interest; and

 (iii) no interest on those contributions had accrued during any period when the person was not entitled to a parliamentary allowance;

 (e) if:

 (i) the person was entitled to a parliamentary allowance at all times since the end of 30 June 1992; and

 (ii) an amount (the lump sum amount) would have been payable to the person under subsection 18(4) if it were assumed that the person had retired voluntarily at the end of 30 June 1992;

  the sum of the following amounts:

 (iii) the lump sum amount;

 (iv) the interest that would have accrued on the lump sum amount if it were assumed that:

 (A) the lump sum amount had been a member contribution made on 1 July 1992 under the superannuation scheme established by deed under the Superannuation Act 1990; and

 (B) interest on the contribution had accrued in accordance with determinations by CSC under that scheme as to rates of interest and the method of allocating interest.

 (1AA) For the purposes of paragraph (1A)(b), the amount is the sum of:

 (a) the person’s minimum requisite benefit; and

 (b) an amount, determined in writing by the Secretary of the Finance Department in relation to the person in accordance with advice received from an actuary, representing interest on the person’s minimum requisite benefit.

 (1AB) In determining an amount for the purposes of paragraph (1AA)(b), the Secretary must have regard to the following:

 (a) the timing and amounts of the benefits paid to or in respect of the person under this Act;

 (b) determinations by CSC under the superannuation scheme established by deed under the Superannuation Act 1990 as to rates of interest and the method of allocating interest;

 (c) any other matter that the Secretary considers relevant.

 (1AC) In working out the superannuation guarantee safety‑net amount for the purposes of paragraph 19AB(1C)(b), increase the amount worked out under subsection (1AA) of this section by the person’s surcharge deduction amount.

Refund of contributions

 (2) For the purposes of this Act, if a superannuation guarantee safety‑net amount is paid to a person, so much of that amount as is attributable to the person’s contributions is taken to be a refund of the contributions.

Definitions—superannuation guarantee charge

 (3) In this section:

benefit certificate means the benefit certificate (within the meaning of section 10 of the Superannuation Guarantee (Administration) Act 1992) that was in effect on the last day the person was entitled to a parliamentary allowance.

changeover day means the day on which Schedule 4 to the Parliamentary Business Resources Legislation Amendment (Review Implementation and Other Measures) Act 2024 commences.

complying superannuation fund or scheme has the same meaning as in the Superannuation Guarantee (Administration) Act 1992.

individual superannuation guarantee shortfall has the same meaning as in the Superannuation Guarantee (Administration) Act 1992.

minimum requisite benefit means the benefit certified by an actuary in the benefit certificate as the minimum requisite benefit for the person, as a member of the scheme constituted by the provisions of this Act, calculated at the last day the person was entitled to a parliamentary allowance.

17  Meaning of voluntary retirement

 (1) For the purposes of this Part, the cases in which a member shall be deemed to have retired voluntarily shall be the cases specified in this section.

 (2) Notwithstanding anything contained in this section, a member shall not be deemed to have retired voluntarily if he or she has attained the age of 60 years at the time when he or she ceases to be entitled to a parliamentary allowance.

 (3) A member who resigns his or her place before the end of his or her term of office is taken to have retired voluntarily if:

 (a) the Trust does not determine under section 15A that the resignation is to be treated as an invalidity retirement; and

 (b) he or she fails to satisfy the Trust that his or her resignation was made bona fide:

 (i) for the purpose of securing election for another electorate or for another State; or

 (ii) for the purpose of submitting himself or herself for re‑election by the electors of his or her former electorate; or

 (iii) for the purpose of securing election as a member of the House of which he or she was not a member.

 (4) A person who has ceased to be a senator upon the expiration of the term of office of a class of senators or the dissolution of the Senate, or has ceased to be a member of the House of Representatives upon the dissolution or expiration of that House, shall be deemed to have retired voluntarily:

 (a) if:

 (i) in the case of a person who was a senator—he or she was not, at the time of an election to fill places in the Senate that became vacant at the time when his or her place became vacant, a candidate for election to the Senate or, if elections of members of the House of Representatives were held, or an election of a member of the House of Representatives was held, at the same time as such a Senate election, a candidate either for election as a senator or as a member of the House of Representatives; or

 (ii) in the case of a person who was a member of the House of Representatives—he or she was not, at the time of the next ensuing elections for that House, a candidate for election to that House or, if elections of senators were held, or an election of a senator was held, at the same time as those elections for that House, a candidate either for election as a senator or as a member of the House of Representatives;

  and both:

 (iii) the Trust does not determine under section 15A that his or her failure to be such a candidate is to be treated as an invalidity retirement; and

 (iv) he or she does not satisfy the Trust that his or her failure to be such a candidate was due to:

 (A) his or her failure to secure the support of a political party from which he or she reasonably sought support; or

 (B) his or her expulsion from a political party; or

 (b) if he or she was such a candidate but did not, in the opinion of the Trust, genuinely desire to be elected.

 (5) A member shall be deemed to have retired voluntarily if his or her place becomes vacant:

 (a) under section 20 or 38 of the Constitution; or

 (b) by reason of his or her becoming subject to any of the disabilities mentioned in paragraphs 44(iv) and (v) of the Constitution, or because he or she has directly or indirectly taken or agreed to take any fee or honorarium for services rendered to the Commonwealth, within the meaning of paragraph 45(iii) of the Constitution.

 (6) Notwithstanding anything contained in this section (except subsection (2)), a member shall be deemed to have retired voluntarily if he or she ceases to be a member in circumstances which, in the opinion of the Trust, should justly be treated as constituting a voluntary retirement for the purposes of this Part.

18  Benefits to members

 (1) Subject to this Act, a member who ceases to be entitled to a parliamentary allowance shall be entitled to benefits in accordance with this section.

Note: A benefit to which a person is entitled in accordance with this section may be reduced under Part VC (which deals with the Division 293 and 296 tax laws).

 (1AA) For the purposes of this section, the most recent benefit start‑up time is the time when a benefit becomes payable to the person (ignoring any application of subsection (8A) or (8AC)).

 (1A) Where the period of service of a member is not less than 12 years, then, subject to subsections (8A) and (8AC), the benefit shall be a retiring allowance during his or her life‑time at the rate applicable in accordance with the scale set out in subsection (6).

 (1B) Where the period of service of a member is less than 12 years but he or she has, on each of at least 4 occasions (including occasions before the commencement of this subsection), ceased to be a member upon the dissolution or expiration of the House of which he or she was then a member or upon the expiration of his or her term of office, then, subject to subsections (8A) and (8AC), the benefit shall be:

 (a) if his or her period of service is less than 8 years—a retiring allowance during his or her life‑time at the rate applicable in accordance with the scale set out in subsection (6) in the case of a member whose period of service is 8 years; or

 (b) in any other case—a retiring allowance during his or her life‑time at the rate applicable in accordance with the scale set out in subsection (6).

 (2) In the case of a member (other than a member to whom subsection (1A) or (1B) applies) who does not retire voluntarily and whose retirement is not an invalidity retirement, the benefit (subject to subsections (8A), (8AC) and (8B)) is:

 (a) where his or her period of service is not less than 8 years—a retiring allowance during his or her life‑time at the rate applicable in accordance with the scale set out in subsection (6);

 (aa) where his or her period of service is less than 8 years but he or she has, on each of at least 3 occasions (including occasions before the commencement of this paragraph), ceased to be a member upon the dissolution or expiration of the House of which he or she was then a member or upon the expiration of his or her term of office—a retiring allowance during his or her life‑time at the rate applicable in accordance with the scale set out in subsection (6) in the case of a member whose period of service is 8 years; or

 (b) in any other case—the greater of the following:

 (i) a refund of his or her contributions together with a payment of the Commonwealth supplement;

 (ii) the superannuation guarantee safety‑net amount.

 (2AAA) If the amount referred to in subparagraph (2)(b)(i) is equal to the amount referred to in subparagraph (2)(b)(ii), paragraph (2)(b) has effect as if the amount referred to in subparagraph (2)(b)(i) were greater than the amount referred to in subparagraph (2)(b)(ii).

 (2AA) In the case of a member (other than a member to whom subsection (1A) or (1B) applies) whose retirement is an invalidity retirement, the benefit (subject to subsections (8A), (8AC) and (8B)) is:

 (a) if the member’s period of service is not less than 8 years—a retiring allowance during his or her life‑time at the rate applicable in accordance with the scale set out in subsection (6); or

 (b) if the member’s period of service is less than 8 years but he or she has, on each of at least 3 occasions (including occasions before the commencement of this subsection), ceased to be a member upon:

 (i) the dissolution or expiration of the House of which he or she was then a member; or

 (ii) the expiration of his or her term of office;

  a retiring allowance during his or her life‑time at the rate of 50% of parliamentary allowance for the time being payable to a member; or

 (c) if:

 (i) neither of the preceding paragraphs applies; and

 (ii) he or she is a class 1 invalid;

  a retiring allowance during his or her life‑time at the rate of 50% of parliamentary allowance for the time being payable to a member; or

 (d) if:

 (i) none of the preceding paragraphs applies; and

 (ii) he or she is a class 2 invalid;

  a retiring allowance during his or her life‑time at the rate of 30% of parliamentary allowance for the time being payable to a member; or

 (e) if:

 (i) none of the preceding paragraphs applies; and

 (ii) he or she is a class 3 invalid;

  the greater of the following:

 (iii) a refund of his or her contributions together with a payment of the Commonwealth supplement;

 (iv) the superannuation guarantee safety‑net amount.

Note: The references in this subsection to the rate of parliamentary allowance for the time being payable are affected by section 22T.

 (2AB) If the amount referred to in subparagraph (2AA)(e)(iii) is equal to the amount referred to in subparagraph (2AA)(e)(iv), paragraph (2AA)(e) has effect as if the amount referred to in subparagraph (2AA)(e)(iii) were greater than the amount referred to in subparagraph (2AA)(e)(iv).

 (2AC) If:

 (a) a person is entitled to a retiring allowance under paragraph (2AA)(c) or (d); and

 (b) under section 15C, the Trust reviews the person’s current classification as a class 1 invalid or a class 2 invalid, as the case may be; and

 (c) the Trust decides to re‑classify the person under section 15C;

the following provisions have effect from the date on which the re‑classification takes effect:

 (d) the person ceases to be entitled to a retiring allowance under whichever of paragraph (2AA)(c) or (d) was applicable;

 (e) the person becomes entitled to a retiring allowance or benefit under whichever of paragraph (2AA)(c), (d) or (e) is applicable to the person as a result of the re‑classification.

 (2A) For the purposes of subsection (1B) and paragraphs (2)(aa) and (2AA)(b), every senator whose term of office was 6 years shall, if at the expiration of 3 years after the commencement of that term of office that term of office had not expired, be deemed (in addition to his or her having ceased to be a senator at the actual expiration of that term of office if he or she continued in office for the whole of that term) to have at the expiration of that period of 3 years ceased to be a senator by reason of the expiration of that term of office.

 (3) Where a person has been appointed to hold the office of a senator by the Governor of a State under section 15 of the Constitution, his or her ceasing to be a member upon the expiration of 14 days after the beginning of the next session of the Parliament of the State, or upon the election of a successor, as the case may be, shall not be taken into account for the purposes of subsection (1B) or paragraphs (2)(aa) and (2AA)(b).

 (4) In the case of a member (other than a member to whom subsection (1A) or (1B) applies) who retires voluntarily, the benefit (subject to subsections (8B)) is the greater of the following:

 (a) a refund of his or her contributions together with a payment of 50% of the Commonwealth supplement;

 (b) the superannuation guarantee safety‑net amount.

 (5) If the amount referred to in paragraph (4)(a) is equal to the amount referred to in paragraph (4)(b), subsection (4) has effect as if the amount referred to in paragraph (4)(a) were greater than the amount referred to in paragraph (4)(b).

 (6) The rate of retiring allowance payable to a person under this section is such percentage of the rate of parliamentary allowance for the time being payable to a member as is applicable in accordance with the following scale:

| Number of complete years in period of service of person | Percentage of parliamentary allowance to be paid as retiring allowance | | 8 | 50.00 | | 9 | 52.50 | | 10 | 55.00 | | 11 | 57.50 | | 12 | 60.00 | | 13 | 62.50 | | 14 | 65.00 | | 15 | 67.50 | | 16 | 70.00 | | 17 | 72.50 | | 18 or more | 75.00 |

Note: The reference in this subsection to the rate of parliamentary allowance for the time being payable is affected by section 22T.

 (7) Where:

 (a) the number of complete years in the period of service of a person is not less than 8 but less than 18; and

 (b) that period of service includes, apart from those complete years, a number of complete days;

the percentage of the rate of parliamentary allowance applicable in relation to the person in accordance with the scale set out in subsection (6) shall be increased by an additional percentage (calculated to 3 decimal places) of that rate ascertained by multiplying the number of those complete days or 364, whichever is the less, by .00685.

 (8) Where the additional percentage ascertained in accordance with subsection (7) in relation to a person would, if it were calculated to 4 decimal places, end with a number greater than 4, that additional percentage shall be taken to be the percentage calculated to 3 decimal places in accordance with that subsection and increased by 0.001.

 (8A) If:

 (a) a person’s surcharge debt account is in debit at the most recent benefit start‑up time; and

 (b) apart from this subsection, the person would be entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d);

then, instead of the retiring allowance referred to in paragraph (b), and for so long as the person does not make an election under subsection 18A(1) after the most recent benefit start‑up time, the person is entitled to a retiring allowance during his or her life‑time at a rate equal to such percentage of the rate of parliamentary allowance for the time being payable to a member as is worked out by using the formula:

Start formula Percentage times start fraction Basic rate minus Surcharge adjustment over Basic rate end fraction end formula

basic rate means the rate at which, at the most recent benefit start‑up time, the retiring allowance referred to in paragraph (b) would have been payable to the person if this subsection did not apply to the person.

percentage means:

 (a) if, apart from this subsection, the person would have been, at the most recent benefit start‑up time, entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a)—the percentage of the rate of parliamentary allowance by reference to which the rate of that retiring allowance would have been, at the most recent benefit start‑up time, ascertained (see subsection (6) and, if applicable, subsections (7) and (8)); or

 (b) if, apart from this subsection, the person would have been, at the most recent benefit start‑up time, entitled to a retiring allowance under paragraph (2AA)(b), (c) or (d)—the percentage of the rate of parliamentary allowance specified in that paragraph.

surcharge adjustment means the total of the person’s notional adjustment debits arising under any or all of the following provisions at or before the most recent benefit start‑up time:

 (a) subsection (8AA);

 (b) subsection (8AB);

 (8AAA) Any reduction under section 22CH is to be disregarded in applying the definition of basic rate in subsection (8A) of this section.

 (8AA) If:

 (a) a person’s surcharge debt account is in debit at the most recent benefit start‑up time; and

 (b) apart from subsection (8A), the person would be entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d);

there is taken to have arisen at the most recent benefit start‑up time a notional adjustment debit of the person equal to the amount worked out using the following formula:

Start formula start fraction Surcharge deduction amount over Conversion factor end fraction end formula

conversion factor means the factor applicable to the person under the determination made by the Trust under section 22A.

surcharge deduction amount means the person’s surcharge deduction amount.

 (8AB) If:

 (a) at the time this subsection commences (the commencement time), a person is entitled to a retiring allowance under subsection (8A); and

 (b) that retiring allowance was calculated by reference to a particular surcharge adjustment within the meaning of that subsection as in force before the commencement time;

there is taken to have arisen at the commencement time a notional adjustment debit of the person equal to that surcharge adjustment.

 (8AC) If:

 (a) a person makes an election under subsection 18A(1) on a particular day (the election day) after the most recent benefit start‑up time; and

 (b) if the election had not been made, the person would have been entitled on the election day to a retiring allowance under subsection (1A), (1B) or (8A) or this subsection or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d);

then, on and after the election day, instead of the retiring allowance referred to in paragraph (b), the person is entitled to a retiring allowance during his or her lifetime at a rate equal to such percentage of the rate of parliamentary allowance for the time being payable to a member as is worked out using the formula:

Start formula Percentage times start fraction Basic rate minus Surcharge adjustment over Basic rate end fraction end formula

basic rate means the rate at which, at the most recent benefit start‑up time, a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d) would have become payable to the person if this subsection and subsection (8A) did not apply to the person.

percentage means:

 (a) if, apart from this subsection and subsection (8A), the person would have been entitled at the most recent benefit start‑up time to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a)—the percentage of the rate of parliamentary allowance by reference to which the rate of that retiring allowance would be ascertained (see subsection (6) and, if applicable, subsections (7) and (8)); or

 (b) if, apart from this subsection and subsection (8A), the person would have been entitled at the most recent benefit start‑up time to a retiring allowance under paragraph (2AA)(b), (c) or (d)—the percentage of the rate of parliamentary allowance specified in that paragraph.

surcharge adjustment means the total of:

 (a) the person’s notional adjustment debits arising under any or all of the following provisions before the end of the election day:

 (i) subsection 18A(6);

 (ii) subsection (8AA);

 (iii) subsection (8AB); and

 (b) the person’s notional adjustment debits arising under subsection 18B(15) after the most recent benefit start‑up time and before the end of the election day.

 (8ACA) Any reduction under section 22CH is to be disregarded in applying the definition of basic rate in subsection (8AC) of this section.

 (8B) If:

 (a) a person’s surcharge debt account is in debit when a benefit becomes payable to the person; and

 (b) apart from this subsection, the person would be entitled to a benefit under paragraph (2)(b) or (2AA)(e) or subsection (4);

then, instead of the benefit referred to in paragraph (b), the amount of the benefit to which the person is entitled is an amount equal to the difference between:

 (c) the amount that would be payable to the person under this section if this subsection did not apply to the person; and

 (d) the person’s surcharge deduction amount.

 (9) Where the period of service of a person who became entitled to a retiring allowance after 30 June 1980 includes a period or periods during which the person served as a Minister of State or as an office holder, the person is entitled, in respect of:

 (a) his or her service in each office that he or she held as a Minister of State (other than his or her service in an office, during a period that he or she held more than one office as a Minister of State, that did not affect the salary to which he or she was entitled as Minister of State during that period); or

 (b) his or her service in each office by virtue of which he or she was an office holder;

as the case may be, to additional retiring allowance in respect of his or her service in that office at a rate equal to such percentage of the rate, for the time being, at which salary is payable to a Minister of State or allowance by way of salary is payable to an office holder, as the case may be, in respect of that office as is determined in accordance with subsection (10) to be the relevant percentage in respect of his or her service in that office.

Note: The reference in this subsection to the rate of salary, or allowance by way of salary, for the time being payable in respect of an office is affected by sections 22T and 23.

 (10) For the purposes of subsection (9), the relevant percentage in respect of the service of a person in a particular office is:

 (a) if the period of service of the person in that office is less than a complete year—the percentage, calculated to 3 decimal places, that is obtained by multiplying 6.25% by the number of days in that period of service and dividing the product by 365;

 (b) if the period of service of the person in that office is a complete year—6.25%;

 (c) if the period of service of the person in that office is a number of complete years—the percentage obtained by multiplying 6.25% by the number of complete years in that period of service; or

 (d) if the period of service of the person in that office is a complete year or a number of complete years and also, apart from that complete year or those complete years, a number of days—the percentage obtained by adding together:

 (i) the percentage ascertained in accordance with paragraph (b) or (c) in respect of the complete year or the complete years, as the case requires; and

 (ii) the percentage, calculated to three decimal places, that is obtained by multiplying 6.25% by the number of the days and dividing the product by 365.

 (10A) Where the relevant percentage ascertained in accordance with subsection (10) in relation to the service of a person in a particular office would, if it were calculated to 4 decimal places, end with a number greater than 4, that percentage shall be taken to be the percentage calculated to 3 decimal places in accordance with that subsection and increased by 0.001.

 (10B) Nothing in subsection (9) shall be taken to entitle a person to additional retiring allowance at a rate that exceeds:

 (a) in a case where the person is entitled to additional retiring allowance in respect of one office only—75% of the rate, for the time being, at which salary or allowance by way of salary, as the case may be, is payable in respect of that office; or

 (b) in a case where the person is entitled to additional retiring allowance in respect of 2 or more offices—75% of the rate that is the highest rate, for the time being, at which salary or allowance by way of salary, as the case may be, is payable in respect of either or any of those offices.

Note: The reference in this subsection to the rate of salary, or allowance by way of salary, for the time being payable in respect of an office is affected by sections 22T and 23.

 (11) A reference in this section to a member includes a reference to any person who is entitled to parliamentary allowance.

 (12) For the purpose of references in this section to the rate of parliamentary allowance for the time being payable to a member, any reductions under Division 3 of Part 2 of the Parliamentary Business Resources Act 2017 (about salary sacrifice) of a particular member’s entitlement to parliamentary allowance are to be disregarded.

18A  Commutation of retiring allowance—payment of surcharge liability

 (a) a person is entitled to a retiring allowance under subsection 18(1A), (1B), (8A) or (8AC) or paragraph 18(2)(a) or (aa) or 18(2AA)(a), (b), (c) or (d); and

 (b) an assessment is made of the surcharge on the person’s surchargeable contributions for a financial year; and

 (c) the person becomes liable to pay the surcharge under the assessment in accordance with paragraph 10(4)(c) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997;

the person may, within:

 (d) 3 months after the assessment was made; or

 (e) such longer period as the Trust allows;

give the Secretary of the Finance Department a written notice electing to commute the whole or a part of the person’s retiring allowance to a lump sum benefit equal to the amount specified in the election.

 (1A) However, a person may not make an election under subsection (1) if the person has given the Secretary of the Finance Department a written notice under paragraph 22SC(2)(c).

 (b) must not have the effect of reducing the person’s retiring allowance below zero; and

 (4) If a person makes an election under subsection (1), the person is entitled to a lump sum benefit equal to the surcharge commutation amount.

Note: The person’s retiring allowance will be reduced under subsection 18(8AC).

 (5) If a person is entitled to a lump sum benefit under subsection (4), the liability to pay that benefit must be discharged by:

 (a) paying the amount of that benefit to the Commissioner of Taxation in accordance with the person’s request; and

 (b) informing the Commissioner of Taxation of the person’s request that the amount be wholly applied in payment of surcharge under the assessment concerned.

Notional adjustment debit

 (6) If a person makes an election under subsection (1) on a particular day, there is taken to have arisen at the start of that day a notional adjustment debit of the person equal to the amount worked out using the following formula:

  Start formula start fraction Surcharge commutation amount over Conversion factor end fraction end formula

conversion factor means the factor applicable to the person under the determination made by the Trust under section 22B.

 (7) A person is not entitled to make more than one election under subsection (1) in relation to a particular assessment.

18B  Commutation of retiring allowance—general

 (1) This section applies to a person who becomes entitled to a retiring allowance on or after 12 June 1978 other than a person who:

 (a) becomes entitled to that allowance in pursuance of paragraph 18(2)(a) or (aa); and

 (b) becomes entitled to that allowance under paragraph 18(2AA)(a), (b), (c) or (d).

Note: For the purposes of this section, a person who is a deferring member for the purposes of Part VA is treated as not becoming entitled to a retiring allowance before the person attains the age of 55 years. See section 22DC.

 (3) Notwithstanding anything in this Act, a person may, not earlier than 3 months before, and not later than 3 months after, becoming a person to whom this section applies, by notice in writing signed by the person and delivered personally or sent by post to the Secretary of the Finance Department, elect to convert such percentage (not exceeding 50%) of his or her retiring allowance as is specified in the notice (in this section referred to as the specified percentage) to a lump sum payment determined in accordance with this section.

 (3A) A person who has made an election under subsection (3) to convert a percentage of his or her retiring allowance to a lump sum payment may, not later than 3 months after, but not earlier than 3 months before, becoming a person to whom this section applies, by notice in writing given to the Secretary of the Finance Department, elect that the person’s surcharge deduction amount be deducted from the lump sum payment

 (4) If the person has not made an election under subsection (3A), the amount of the lump sum payment is:

 (a) in any of the cases mentioned in subsection (5)—the specified percentage of the annual amount of the retiring allowance payable to him or her multiplied by 10; or

 (b) in any other case—the specified percentage of the annual amount of the retiring allowance payable to him or her multiplied by the number ascertained in accordance with the formula Start formula 10 minus start fraction x over 24 end fraction end formula,

  where x is the number of whole months in the period that commenced on the day on which he or she attained the age of 65 years and ended on the day immediately before he or she became entitled to the retiring allowance.

 (4A) If the person has made an election under subsection (3A), the amount of the lump sum payment is the difference between:

 (a) the amount of the lump sum payment that would have been payable to the person under subsection (4) if he or she had not made the election; and

 (b) the person’s surcharge deduction amount.

 (5) The cases referred to in paragraph (4)(a) are:

 (a) the case where the person had not attained the age of 66 years at the time when he or she became entitled to the retiring allowance;

 (b) the case where the person attained the age of 66 years after the dissolution or expiration of the House of which he or she was last a member, or after the expiration of his or her last term of office as a member, and before he or she became entitled to the retiring allowance; and

 (c) the case where:

 (i) the person attained the age of 66 years at a time when he or she was a member;

 (ii) the person ceased to be a member upon the dissolution or expiration of the House of which he or she was a member at the time when he or she attained that age or upon the expiration of the term of office during which he or she attained that age; and

 (iii) the person did not, after so ceasing to be a member, again become a member before he or she became entitled to the retiring allowance.

 (6) Where a person elects to convert a percentage of his or her retiring allowance to a lump sum payment in accordance with subsection (3):

 (a) the percentage of the rate of parliamentary allowance applicable in relation to him or her under section 18 for the purpose of calculating the rate of retiring allowance payable to him or her under that section (other than any additional retiring allowance payable under subsection (9) of that section) shall, in lieu of the percentage (in this paragraph referred to as the previous percentage) that would, but for this paragraph, be applicable in relation to him or her under that section, be ascertained in accordance with the formula

  Start formula start fraction p open bracket 100 minus s close bracket over 100 end fraction end formula,

  p is the previous percentage; and

  s is the specified percentage;

 (b) if the person is entitled to additional retiring allowance under subsection 18(9), the percentage that is, under that subsection, the relevant percentage for the purpose of ascertaining the additional retiring allowance payable to him or her under that subsection in respect of his or her service in an office shall, in lieu of the percentage (in this paragraph referred to as the previous percentage) that would, but for this paragraph, be the relevant percentage, under that subsection, in respect of his or her service in that office, be ascertained in accordance with the formula

  Start formula start fraction p open bracket 100 minus s close bracket over 100 end fraction end formula,

  p is the previous percentage; and

  s is the specified percentage; and

 (c) if a payment or payments of retiring allowance has or have already been made to him or her since he or she became entitled to the retiring allowance, the amount of the lump sum payment referred to in subsection (4) shall be reduced by so much of the amount of the payment, or of the sum of the amounts of the payments, already made as relates or relate to the specified percentage of the retiring allowance.

 (7) A reference in this section to the annual amount of the retiring allowance payable to a person shall be construed as a reference to the annual amount of the retiring allowance that was payable to the person at the time when he or she became entitled to that allowance.

 (9) Notwithstanding anything contained in this section, where the Trust is of the opinion that a person who:

 (a) has become entitled to a retiring allowance; and

 (b) has made an election under subsection (3) to convert a percentage of his or her retiring allowance to a lump sum payment in accordance with that subsection;

would, within 12 months after having become entitled to that retiring allowance, be likely to become a member again, the Trust shall direct that the operation of the election be deferred for such period, not exceeding 12 months, as the Trust determines.

 (10) The Trust may at any time during the period of deferment of the operation of an election made under subsection (3) reduce the period of deferment.

 (11) During the period of deferment of the operation of an election made under subsection (3) by a person, retiring allowance shall, subject to subsection 20(3), be paid to the person as if the election had not been made.

 (12) Where, during the period of deferment of the operation of an election made under subsection (3) by a person, the person becomes a member again, the election shall, for the purposes of this Act, be deemed never to have been made.

 (13) Where, during the period of deferment of the operation of an election made under subsection (3) by a person, the person does not become a member again, the lump sum payment that would have been payable to him or her in accordance with subsection (3) but for the deferment shall be paid to him or her, but, in determining the amount by which the amount of the lump sum payment referred to in subsection (4) is to be reduced in accordance with paragraph (6)(c), payments of retiring allowance made to him or her after the election was made shall be treated as having been made to him or her before the election was made.

 (14) Where, during the period of deferment of the operation of an election made under subsection (3) by a person, the person dies, the lump sum payment that would have been payable to him or her in accordance with subsection (3) but for the deferment shall be paid to his or her personal representative, but, in determining the amount by which the amount of the lump sum payment referred to in subsection (4) is to be reduced in accordance with paragraph (6)(c), payments of retiring allowance made to the person after the election was made shall be treated as having been made to him or her before the election was made.

 (15) If:

 (a) a person makes an election under subsection 18A(1) on a particular day (the election day) in relation to his or her retiring allowance; and

 (b) the person has already made an election under subsection (3) of this section in relation to the retiring allowance; and

 (c) the person has not made an earlier election under subsection 18A(1) in relation to his or her retiring allowance;

there is taken to have arisen at the start of the election day a notional adjustment debit of the person equal to the amount worked out using the following formula:

Start formula start fraction Specified percentage times open bracket Basic rate minus Earlier notional adjustment debits close bracket over 100 end fraction end formula

basic rate has the same meaning as in subsection 18(8AC).

earlier notional adjustment debits means the total of the person’s notional adjustment debits arising under any or all of the following provisions before the start of the election day:

 (a) subsection 18(8AA);

 (b) subsection 18(8AB);

 (15A) Any reduction under section 22CH is to be disregarded in applying the definition of basic rate in subsection (15) of this section.

 (16) If:

 (a) a person makes an election under subsection 18A(1) on a particular day (the election day) in relation to his or her retiring allowance; and

 (b) the person has already made an election under subsection (3) of this section in relation to the retiring allowance;

paragraph (6)(a) ceases to apply to the retiring allowance on the election day.

 (17) If:

 (a) a person makes an election under subsection 18A(1) in relation to his or her retiring allowance; or

 (b) the amount of the person’s retiring allowance is reduced in accordance with section 22SE to reflect a release authority lump sum (within the meaning of Part VC);

the person is not entitled to make a subsequent election under subsection (3) of this section in relation to the retiring allowance.

19  Benefits to spouse

 (a) a person who is entitled to a parliamentary allowance dies; or

 (b) a person who is entitled to a retiring allowance (whether or not the retiring allowance is immediately payable) dies;

benefits are payable in accordance with this section.

 (2) Subject to sections 19AAA and 21AA, if the deceased person is survived by a spouse, there is payable to the spouse an annuity, during his or her life‑time, at a rate ascertained in accordance with subsection (3).

 (3) The rate of the annuity referred to in subsection (2) is five‑sixths of the rate of the retiring allowance that would have been applicable to the deceased person if he or she had not died and:

 (aa) where he or she died while entitled to a retiring allowance the rate of which was, at the time of his or her death, reduced under section 21B—the rate of retiring allowance to which he or she was entitled was not so reduced;

 (a) where he or she died while entitled to a parliamentary allowance—he or she had ceased to be entitled to that allowance on the date of his or her death; and

 (b) where his or her period of service was less than 8 years—his or her period of service had been 8 years.

19AAA  Commutation of spouse’s annuity—payment of surcharge liability

 (a) a person (the deceased person) dies and:

 (i) the deceased person was entitled to a parliamentary allowance; or

 (ii) the deceased person was entitled to a retiring allowance, whether or not the retiring allowance was immediately payable; and

 (b) the deceased person is survived by a spouse; and

 (c) the spouse is entitled to an annuity; and

 (d) an assessment is made of the surcharge on the deceased person’s surchargeable contributions for a financial year; and

 (e) the spouse becomes liable to pay the surcharge under the assessment in accordance with paragraph 10(4)(ca) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997;

the spouse may, within:

 (f) 3 months after the assessment was made; or

 (g) such longer period as the Trust allows;

give the Secretary of the Finance Department a written notice electing to commute the whole or a part of the annuity to a lump sum benefit equal to the amount specified in the election.

 (b) must not have the effect of reducing the annuity below zero; and

 (4) If a spouse makes an election under subsection (1), the spouse is entitled to a lump sum benefit equal to the surcharge commutation amount.

 (5) If a spouse is entitled to a lump sum benefit under subsection (4), the liability to pay that benefit must be discharged by:

 (a) paying the amount of that benefit to the Commissioner of Taxation in accordance with the spouse’s request; and

 (b) informing the Commissioner of Taxation of the spouse’s request that the amount be wholly applied in payment of surcharge under the assessment concerned.

Reduction of annuity

 (6) If a spouse makes an election under subsection (1) in relation to an annuity, the rate of the annuity is to be reduced in accordance with the method determined in writing by the Trust in relation to the spouse following consultation with an actuary. The reduction takes effect from the beginning of the day of the election.

 (7) A method determined by the Trust under subsection (6) is to be a method that, having regard to:

 (a) the age of the spouse when the election is made under subsection (1); and

is applicable for the purpose of working out, in relation to the spouse, the rate by which the annuity would have to be reduced to discharge a liability equal to the surcharge commutation amount.

 (8) A spouse is not entitled to make more than one election under subsection (1) in relation to a particular assessment.

19AA  Benefits in respect of orphaned children

 (1) In the cases specified in this section, benefits for the care and maintenance of eligible children are payable in such manner and subject to such conditions as the Trust determines.

 (2) Subject to subsections (2A) and (2B), where:

 (a) a person has died or dies while entitled to a parliamentary allowance; or

 (b) a person has died or dies while entitled to a retiring allowance (whether or not the retiring allowance was or is, as the case may be, immediately payable);

and the deceased person:

 (c) was or is survived by a child of the deceased person or of a former spouse of the deceased person, being a child who:

 (i) was dependent on the deceased person; and

 (ii) is an eligible child; and

 (d) was not or is not survived by a person with whom the deceased person had had a marital or couple relationship and who is:

 (i) the natural or adoptive parent of that child; or

 (ii) the parent of that child because the child is a child of the person within the meaning of the Family Law Act 1975;

then, subject to sections 19ABA and 21AA, benefit in accordance with this section is payable in respect of the child.

 (2A) Subject to subsection (2B), if the deceased person died while entitled to a retiring allowance (whether or not the retiring allowance was immediately payable), subsection (2) does not apply in relation to a child who was born, or was adopted by the deceased person, either alone or together with another person, after the date on which the deceased person became entitled to the retiring allowance and after the date on which the deceased person attained the age of 60 years.

 (2B) Subsection (2A) does not exclude a child from benefit where:

 (a) the child:

 (i) was born while the deceased person was having a marital or couple relationship with another person; or

 (ii) was adopted by the deceased person or the deceased person with that other person during the duration of that relationship; or

 (iii) was a child of the deceased person, and that other person, within the meaning of the Family Law Act 1975; and

 (b) if that other person had survived the deceased person, that other person would have been entitled to an annuity under section 19.

 (3) Subject to subsection (3A), where a spouse entitled to an annuity under section 19 (whether or not the annuity is immediately payable) dies and is survived by a child who is a dependent child of the spouse or of the deceased person and is an eligible child, benefit in accordance with this section is payable in respect of the child.

 (3A) Subsection (3) does not apply to a child who:

 (a) was born after the date of the death of the deceased person; or

 (b) was adopted by the spouse after that date (whether alone or together with another person);

unless the child would, in the Trust’s opinion, have been a dependant of the deceased person if the deceased person had not died.

 (4) The benefit in respect of an eligible child is an annuity at the rate of the amount per annum ascertained by dividing by 4 (or, if the number of eligible children of the deceased person in respect of whom benefit is payable under this section is greater than 4, by the number of those children):

 (a) where the benefit became payable on the death of a person referred to in paragraph (2)(a) or (b)—the amount of the annual rate of annuity that would have been payable to the spouse of that person if that person had died leaving a spouse entitled to an annuity under this Act; or

 (c) where the benefit became payable on the death of a spouse referred to in subsection (3)—the amount of the annual rate of annuity that would have been payable to the spouse if she or he had not died and, if the rate of the annuity was, at the time of his or her death, reduced under section 21B, the annuity was not so reduced.

 (5) In this section:

child, in relation to a person, means a child of the person, including:

 (a) an adopted child or an ex‑nuptial child of the person; and

 (b) someone who is a child of the person within the meaning of the Family Law Act 1975.

deceased person means a deceased person mentioned in paragraph (2)(a) or (b).

eligible child means:

 (a) a child who has not attained the age of 18 years; or

 (b) a child who:

 (i) has attained the age of 18 years but has not attained the age of 25 years; and

 (ii) is receiving full‑time education at a school, college or university.

19ABA  Commutation of orphaned child’s annuity—payment of surcharge liability

 (a) a person (the deceased person) dies and:

 (i) the deceased person was entitled to a parliamentary allowance; or

 (ii) the deceased person was entitled to a retiring allowance, whether or not the retiring allowance was immediately payable; and

 (b) either:

 (i) the deceased person is survived by a child of the deceased person or of a former spouse of the deceased person; or

 (ii) the deceased person is survived by a spouse, the spouse dies, and the spouse is survived by a child of the spouse or of the deceased person; and

 (c) an annuity is payable in respect of the child; and

 (d) an assessment is made of the surcharge on the deceased person’s surchargeable contributions for a financial year; and

 (e) the person to whom the annuity is payable (the eligible person) (who may be the child) becomes liable to pay the surcharge under the assessment in accordance with paragraph 10(4)(ca) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997;

the eligible person may, within:

 (f) 3 months after the assessment was made; or

 (g) such longer period as the Trust allows;

give the Secretary of the Finance Department a written notice electing to commute the whole or a part of the annuity to a lump sum benefit equal to the amount specified in the election.

 (b) must not have the effect of reducing the annuity below zero; and

 (4) If an eligible person makes an election under subsection (1), the eligible person is entitled to a lump sum benefit equal to the surcharge commutation amount.

 (5) If an eligible person is entitled to a lump sum benefit under subsection (4), the liability to pay that benefit must be discharged by:

 (a) paying the amount of that benefit to the Commissioner of Taxation in accordance with the eligible person’s request; and

 (b) informing the Commissioner of Taxation of the eligible person’s request that the amount be wholly applied in payment of surcharge under the assessment concerned.

Reduction of annuity

 (6) If an eligible person makes an election under subsection (1) in relation to an annuity, the rate of the annuity is to be reduced in accordance with the method determined in writing by the Trust in relation to the child following consultation with an actuary. The reduction takes effect from the beginning of the day of the election.

 (7) A method determined by the Trust under subsection (6) is to be a method that, having regard to:

 (a) the age of the child when the election is made under subsection (1); and

is applicable for the purpose of working out, in relation to the child, the rate by which the annuity would have to be reduced to discharge a liability equal to the surcharge commutation amount.

 (8) An eligible person is not entitled to make more than one election under subsection (1) in relation to a particular assessment.

Definition

 (9) In this section:

child has the same meaning as in section 19AA.

19AB  Benefits payable to personal representative

 (a) a person dies on or after 12 June 1978 while entitled to a retiring allowance (whether or not the retiring allowance is immediately payable); and

 (b) the deceased person is not survived by a spouse to whom an annuity is payable under section 19 and no benefits are payable in respect of a child or children of the deceased person or of a former spouse of the deceased person;

there is payable to the personal representative of the deceased person the amount (if any) by which the greater of the following:

 (c) the sum of:

 (i) the contributions paid by the deceased person; and

 (ii) the Commonwealth supplement in relation to the deceased person;

 (d) the superannuation guarantee safety‑net amount in relation to the deceased person;

exceeds the sum of any benefits under this Act paid to, or accrued due to, the deceased person before the death of that person.

 (1A) If the amount referred to in paragraph (1)(c) is equal to the amount referred to in paragraph (1)(d), subsection (1) has effect as if the amount referred to in paragraph (1)(c) were greater than the amount referred to in paragraph (1)(d).

 (1B) If:

 (a) on or after the commencement of this subsection, a person dies while entitled to a parliamentary allowance; and

 (b) the deceased person is not survived by a spouse to whom an annuity is payable under section 19; and

 (c) no benefits are payable in respect of a child or children of the deceased person or of a former spouse of the deceased person;

an amount of benefit worked out under subsection (1C) is payable to the personal representative of the deceased person.

 (1C) The amount of the benefit referred to in subsection (1B) is:

 (a) if paragraph (b) does not apply—the amount by which the greater of the following:

 (i) the sum of the contributions paid by the deceased person and the Commonwealth supplement in relation to him or her;

 (ii) the superannuation guarantee safety‑net amount in relation to the person;

  exceeds the sum of any benefits under this Act paid to, or accrued due to, the person before his or her death; or

 (b) if the deceased person’s surcharge debt account is in debit when a benefit under this section becomes payable in respect of the person—an amount equal to the difference between:

 (i) the amount referred to in (a); and

 (ii) the person’s surcharge deduction amount.

 (1D) If the amount referred to in subparagraph (1C)(a)(i) (first amount) is equal to the amount referred to in subparagraph (1C)(a)(ii), subsection (1C) has effect as if the first amount were the greater of those 2 amounts.

 (2) Where:

 (a) a person dies on or after 12 June 1978 while entitled to a parliamentary allowance or while entitled to a retiring allowance (whether or not the retiring allowance is immediately payable); and

 (b) the greater of the following:

 (i) the sum of:

 (A) the contributions paid by the deceased person; and

 (B) the Commonwealth supplement in relation to the deceased person;

 (ii) the superannuation guarantee safety‑net amount in relation to the deceased person;

exceeds the sum of any benefits under this Act:

 (iii) paid to, or accrued due to, the deceased person before the death of that person; or

 (iv) paid or payable to:

 (A) a spouse of the deceased person; or

 (B) a child or children of the deceased person or of a spouse, or former spouse, of the deceased person;

an amount equal to the excess is payable to the personal representative of the deceased person.

 (2A) If the amount referred to in subparagraph (2)(b)(i) is equal to the amount referred to in subparagraph (2)(b)(ii), paragraph (2)(b) has effect as if the amount referred to in subparagraph (2)(b)(i) were greater than the amount referred to in subparagraph (2)(b)(ii).

 (3) In this section, child has the same meaning as in section 19AA.

19A  Additional benefit to Prime Minister

 (1) Subject to this Act, a person who:

 (a) has, whether before or after the commencement of this section, held the office of Prime Minister for a continuous period of not less than 2 years or for periods amounting in the aggregate to not less than 2 years;

 (b) has, whether before or after the commencement of this section, ceased to be entitled to a parliamentary allowance; and

 (c) has, whether before or after the commencement of this section, attained the age of 45 years;

shall be paid a retiring allowance at the rate ascertained in accordance with the scale set out in subsection (2A) during his or her life‑time.

 (2) Where a person who has held office as specified in paragraph (1)(a) has died or dies (either while holding office as Prime Minister or after ceasing so to hold office), and that person is survived by a spouse, the spouse shall be paid an annuity, during her or his life‑time, at a rate equal to one‑half of the rate of the retiring allowance calculated, in relation to the service of the former Prime Minister, in accordance with the scale set out in subsection (2A).

 (2A) The rate of a retiring allowance under subsection (1) shall be ascertained in accordance with the following scale:

| Period, or aggregate of periods, of service as Prime Minister | Annual amounts of retiring allowance<br>$ | | Not less than 2 years but less than 3 years | 4,000 | | Not less than 3 years but less than 4 years | 4,500 | | Not less than 4 years but less than 5 years | 5,000 | | Not less than 5 years but less than 6 years | 5,500 | | Not less than 6 years | 6,000 |

 (3) A retiring allowance or annuity under this section is payable notwithstanding that the person to whom the retiring allowance or annuity is payable is entitled to some other benefit under this Act.

 (4) This section does not apply to or in respect of any person who, not having held the office of Prime Minister before 12 June 1978, commences to hold that office on or after that date.

 (5) Any period in which a person holds the office of Prime Minister on or after 12 June 1978 shall not be taken into account for the purposes of the application of this section to or in respect of him or her.

 (6) A person who:

 (a) held the office of Prime Minister on 12 June 1978; or

 (b) ceased to hold the office of Prime Minister before 12 June 1978 after having held that office for a continuous period of not less than 2 years or for periods amounting in the aggregate to not less than 2 years and was entitled to a parliamentary allowance on that date;

may, within 3 months after 12 June 1978, by notice in writing signed by the person and delivered personally or sent by post to the Secretary of the Finance Department, elect that this section shall not apply to and in respect of him or her and, where such an election is made, a retiring allowance is not payable under this section to the person and an annuity is not payable under this section to a spouse of the person.

 (7) Any period in which a person has held the office of Prime Minister and which is taken into account for the purposes of the application of this section to or in respect of the person shall be deemed for the purposes of this Act not to be a period in which the person served as a Minister of State.

20  Re‑election to the Parliament

 (1A) In this section:

cut off date for a person means:

 (a) the date that is 12 months after the person again becomes a member; or

 (b) the date immediately before any day on which the person ceases to be a member upon the dissolution or expiration of the House of which he or she was then a member or upon the expiration of his or her term of office.

eligible lump sum amount means:

 (a) a refund of contributions or a payment of the whole or a part of the Commonwealth supplement, or both; or

 (b) the superannuation guarantee safety‑net amount.

 (1AA) If a person who has received an eligible lump sum amount under this Act again becomes a member, the person may enter into a contract with the Trust, in the manner required by the Trust, to repay the amount specified in subsection (1AD) to the Commonwealth within 3 years of the person again becoming a member.

 (1AB) The contract must be made in the period of 3 months after the person again becomes a member.

 (1AC) If there has not been a cut off date for the person in the 3 month period, the trust may extend the period until the first cut off date for the person after the person again becomes a member.

 (1AD) The amount referred to in subsection (1AA) is calculated as follows:

 (a) if paragraph (b) does not apply to the person—the amount is worked out by using the formula:

  Start formula Eligible lump sum amount times start fraction Parliamentary allowance at contract date over Parliamentary allowance at retirement date end fraction end formula

 (b) if the person’s surcharge debt account was in debit when the eligible lump sum amount became payable to the person—the amount is worked out by using the formula:

  Start formula open bracket Eligible lump sum amount plus Surcharge deduction amount close bracket times start fraction Parliamentary allowance at contract date over Parliamentary allowance at retirement date end fraction end formula

parliamentary allowance at contract date means the annual amount of parliamentary allowance payable to a member at the date on which the person enters into the contract.

parliamentary allowance at retirement date means the annual amount of parliamentary allowance payable to a member at the date on which the person most recently retired from the Parliament.

surcharge deduction amount means the person’s surcharge deduction amount when the eligible lump sum amount became payable to the person.

 (1AE) If a person does not enter into a contract under subsection (1AA), the Trust must not, for the purposes of determining the person’s rights to further benefits under this Act, take into account:

 (a) any part of the member’s period of service; or

 (b) any occasion when he or she ceased to be a member;

before the person became entitled to the eligible lump sum amount.

 (2) Where an amount referred to in subsection (1) was accepted in lieu of a retiring allowance, the amount which would otherwise be the subject of a contract of repayment under that subsection shall be reduced by the amount of retiring allowance to which the member would have been entitled, up to the time when he or she again became a member, if he or she had not elected to accept a payment in lieu of retiring allowance.

 (2A) Where a person who is entitled to a parliamentary allowance on 12 June 1978 has, at any time before that date, received an amount referred to in subsection (1) that he or she did not contract, or was not entitled to contract, with the Trust to repay to the Commonwealth as provided by that subsection, the person may, within 3 months after that date, by notice in writing signed by the person and delivered personally or sent by post to the Secretary of the Finance Department, elect to repay that amount to the Commonwealth.

 (2B) Where a person who becomes entitled to a parliamentary allowance on or after 12 June 1978 has, at any time before that date, received an amount referred to in subsection (1) that he or she is not entitled to contract with the Trust to repay to the Commonwealth as provided by that subsection, the person may, within 3 months after the date on which he or she so becomes entitled to a parliamentary allowance, by notice in writing signed by the person and delivered personally or sent by post to the Secretary of the Finance Department, elect to repay that amount to the Commonwealth.

 (2C) Where an election is made under subsection (2A) or (2B) to repay an amount to the Commonwealth:

 (a) the amount shall be repaid at such times and in such amounts as are agreed upon between the person and the Finance Minister or, in the absence of agreement, at such times and in such amounts as the Finance Minister determines, but so that the total of the amounts is repaid to the Commonwealth within 3 years after the date on which the person made the election; and

 (b) subsection (1) does not prevent any part of the period of service of the person, and any occasion on which he or she ceased to be a member, before he or she became entitled to that amount from being taken into account for the purposes of determining his or her rights in respect of any further benefit under this Act.

 (2D) Where a person who has contracted with the Trust under subsection (1), or has made an election under subsection (2A) or (2B), to repay an amount to the Commonwealth elects under subsection 18B(3) to convert a percentage of the retiring allowance to which he or she is entitled into a lump sum payment, there shall be deducted from that lump sum payment so much (if any) of the amount as remains to be paid under the contract or in pursuance of the election and, upon the deduction being made, the person is, to the extent of the amount deducted, discharged from further liability to make repayments under the contract or in pursuance of the election.

 (3) Where a person who is entitled to a retiring allowance in respect of his or her service as a member (whether or not the retiring allowance is immediately payable) again becomes a member, the retiring allowance shall be cancelled, and, subject to subsections (3A) and (3D), thereafter his or her rights and liabilities under this Act shall be the same as if he or she had never been entitled to a retiring allowance.

 (3A) Where:

 (a) a person who has elected (including a person who has elected on more than one occasion) to convert into a lump sum payment a percentage of a retiring allowance to which he or she was entitled again becomes a member; and

 (b) the person subsequently becomes entitled to a retiring allowance;

the annual amount of the last‑mentioned retiring allowance shall be reduced by:

 (c) if the person previously elected on more than one occasion to convert into a lump sum payment a percentage of the retiring allowance to which he or she was entitled—an amount equal to the total of the annual amounts by which the respective retiring allowances to which he or she was previously entitled were reduced by reason of the elections; or

 (d) if the person previously elected on only one occasion to convert into a lump sum payment a percentage of the retiring allowance to which he or she was entitled—the annual amount by which that retiring allowance was reduced by reason of the election.

 (3B) Subsection (3A) does not apply to an election under subsection 18A(1).

 (3C) A reference in subsection (3A) to a retiring allowance to which a person was entitled shall be construed as a reference to the retiring allowance to which he or she was entitled at the time when he or she became entitled to that retiring allowance.

 (3D) The rule in subsection (3) does not apply in working out a person’s notional adjustment debits that have arisen under any of the following provisions:

 (a) subsection 18(8AA);

 (b) subsection 18(8AB);

 (5) This section does not apply in relation to a retiring allowance or annuity under section 19A.

20A  Members who were in the Parliament on 1 July 1994—recognition of prior service in a State or Territory Parliament

 (1AA) For the purposes of this section, a person is an eligible member if:

 (a) he or she was a member as at the commencement of this subsection; and

 (b) at any time before that commencement, the person was a member of:

 (i) the Parliament of a State; or

 (ii) the Legislative Assembly for the Australian Capital Territory; or

 (iii) the Legislative Assembly of the Northern Territory of Australia.

 (1AB) Subject to subsection (1AC), this section does not apply in relation to a member unless the member is an eligible member.

 (1AC) An eligible member may elect, in writing, that this section does not apply in relation to him or her. The election has effect accordingly.

 (1AD) An election under subsection (1AC) must be given to the Trust before whichever is the earlier of the following times:

 (a) the end of the period of 12 months after the commencement of this subsection;

 (b) immediately before the day on which a general election is first held after the commencement of this subsection.

 (1) Subject to subsection (1B), the period of service of a member shall be deemed to include any period, whether before or after the commencement of this section, that ended before the day on which he or she became a member (or, if he or she has become a member on more than one occasion, the day on which he or she last became a member) and during which he or she was a member of the Parliament of a State if:

 (a) he or she is entitled to a pension (including a pension that is not immediately payable) arising out of his or her former membership of that Parliament; or

 (b) he or she received a payment by way of a lump sum by reason of the cessation of his or her membership of that Parliament upon the expiration of that period and, within 3 months, or, if the Trust so allowed, 6 months, after the day on which he or she became a member (or, if he or she has become a member on more than one occasion, the day on which he or she last became a member) or 8 June 1973, whichever was the later, he or she contracted with the Trust, in the manner required by the Trust, to pay that lump sum to the Commonwealth within 3 years.

 (1A) References in subsection (1) to the Parliament of a State shall be construed as including references to the Legislative Assembly for the Australian Capital Territory and the Legislative Assembly of the Northern Territory.

 (1B) The period of service of a member shall not be deemed to include any period after 19 October 1974 and before 23 September 1979 during which the member was a member of the Legislative Assembly of the Northern Territory unless the member elected under section 26 of the Legislative Assembly Members’ Superannuation Act 1979 of the Northern Territory to have his or her period of service as a member of that Legislative Assembly during that period treated as membership for the purposes of that Act.

 (2) Any amounts paid by a person to the Commonwealth under paragraph (1)(b) shall be deemed, for the purposes of this Act other than section 16, to be contributions made by the person.

 (3) Where a person who has contracted with the Trust under subsection (1) of this section to pay an amount to the Commonwealth elects under subsection 18B(3) to convert a percentage of the retiring allowance to which he or she is entitled into a lump sum payment, there shall be deducted from that lump sum payment so much of the amount as remains to be paid under the contract and, upon the deduction being made, the person is, to the extent of the amount deducted, discharged from further liability to make payments under the contract.

 (4) If an eligible member makes an election under subsection (1AC) of this section:

 (a) paragraph 22Q(1)(b) has effect, in relation to the eligible member, as if the reference in that paragraph to 3 months after the date on which he or she became a member were a reference to the earlier of the times referred to in subsection (1AD) of this section; and

 (b) paragraph 22Q(1)(c) has effect, in relation to the eligible member, as if the reference in that paragraph to the expiration of that period of 3 months were a reference to the earlier of the times referred to in subsection (1AD) of this section.

 (5) If an eligible member does not make an election under subsection (1AC) of this section, section 22Q has effect, in relation to the eligible member, as if subsection 4(4A) had not been enacted.

general election means a general election of the members of the House of Representatives.

21  Reduction of benefits as a result of membership of a State Parliament, the Northern Territory Legislative Assembly or the A.C.T. Legislative Assembly

 (1) Subject to this section, if:

 (a) a person is entitled to a retiring allowance or annuity; and

 (b) the person is or becomes a person in receipt of a salary, or an allowance in the nature of a salary, as:

 (i) a member of the Parliament of a State (whether by virtue of holding some special position in that Parliament or not); or

 (ii) a Minister of State of a State;

the rate of retiring allowance or annuity otherwise payable to the person is to be reduced by the rate of the salary or allowance, as the case requires.

 (1AA) Subject to this section, if:

 (a) a person is entitled to a retiring allowance or annuity; and

 (b) the person is or becomes a person in receipt of a pension arising out of:

 (i) former membership of the Parliament of a State (whether by virtue of holding some special position in that Parliament or not); or

 (ii) having been a Minister of State of a State; and

 (c) either:

 (i) the person is in receipt of the pension immediately before the commencement of this subsection; or

 (ii) the person is an eligible member (within the meaning of section 20A) who has not made an election under subsection 20A(1AC);

the rate of retiring allowance or annuity otherwise payable to the person is to be reduced by the rate of the pension.

 (1A) References in subsection (1) or (1AA) to the Parliament of a State and to a Minister of State of a State shall be construed as including references to the Legislative Assembly for the Australian Capital Territory, the Legislative Assembly of the Northern Territory and to a Minister of the Australian Capital Territory or of the Northern Territory, respectively.

 (2) Where the salary, allowance or pension by reference to which a reduction is to be made under subsection (1) or (1AA) is payable otherwise than at a periodical rate, the reduction of the retiring allowance or annuity under this Act shall be made to such extent and in such manner as the Trust determines.

21AA  Rate of benefits if there is more than one spouse

 (1) If a person (deceased person) who was:

 (a) entitled to a parliamentary allowance; or

 (b) entitled to a retiring allowance, whether or not the retiring allowance was immediately payable;

dies leaving more than one spouse, the Trust must allocate any annuities or benefits payable to a spouse or any eligible children in respect of the deceased person under this Act among them.

 (2) The Trust must have regard to:

 (a) the respective needs of the spouses; and

 (b) if there are any eligible children of the deceased person who are entitled to benefits under section 19AA—the respective needs of the children;

when making the allocation.

 (2A) For the purposes of paragraph (2)(a), in determining the needs of a particular spouse, disregard any need that results from an election made by the spouse under section 19AAA.

 (2B) For the purposes of paragraph (2)(b), in determining the needs of a child who is entitled to a benefit under section 19AA, disregard any need that results from an election made in relation to the child under section 19ABA.

 (2C) The Trust must ensure that so much of an annuity as is commuted under section 19AAA or 19ABA is not allocated under this section.

 (3) Subject to subsections (4) and (5), annuities or benefits are only payable to each spouse and eligible child (if any) in accordance with the allocation.

 (4) The aggregate of the rates of the annuities and benefits payable under an allocation must not exceed five‑sixths of the rate of the retiring allowances applicable to the deceased person.

 (5) In subsection (4), the rate of the retiring allowance applicable to the deceased person means the rate of the retiring allowance that would have been applicable to the deceased person if he or she had not died and:

 (a) if the deceased person died while entitled to a retiring allowance the rate of which was, at the time of the death, reduced under section 21 or 21B—the rate of retiring allowance to which the deceased person was entitled was not so reduced; and

 (b) if the deceased person died while entitled to a parliamentary allowance—the deceased person ceased to be entitled to that allowance at the time of the death; and

 (c) if the period of service of the deceased person was less than 8 years—the period of service of the deceased person was 8 years.

 (6) This section has effect subject to sections 19AAA and 19ABA.

21B  Effect of the holding of offices of profit—reduction of certain retiring allowances and annuities

 (1) In this section, unless the contrary intention appears:

annual after‑tax income, in relation to a hypothetical taxpayer and in relation to a year of income, means the hypothetical taxpayer’s taxable income for the year of income, reduced by the income tax and the medicare levy imposed on that taxable income.

assessable income has the same meaning as in the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997, as appropriate.

authorized officer means an officer of the Department who is appointed by the Secretary to be an authorized officer for the purposes of this section.

fortnightly grossed‑up amount, in relation to particular remuneration, means the amount of assessable income that a hypothetical taxpayer would have to derive during each fortnight in the year of income concerned in order that the hypothetical taxpayer’s annual after‑tax income for the year of income would equal the annual rate of the remuneration.

Governor means:

 (a) in relation to a State—the Governor of the State; and

 (b) in relation to a Territory—the Administrator of the Territory.

holder of an office of profit under a State means:

 (a) the Governor of the State;

 (b) a Justice or Judge of a court of the State;

 (c) a magistrate; or

 (d) the holder of:

 (i) an office established for a public purpose by or under a law of the State, being an office appointments to which are or may be made by:

 (A) the Governor of the State; or

 (B) a Minister of the State; or

 (ii) any other appointment made for a public purpose by:

 (A) the Governor of the State; or

 (B) a Minister of the State; or

 (iii) an office of Head of Administration or Associate Head of Administration under section 49 of the Australian Capital Territory (Self‑Government) Act 1988;

but does not include a member of the Parliament of the State.

holder of an office of profit under the Commonwealth means:

 (a) the Governor‑General;

 (b) a Justice or Judge of a federal court;

 (c) a person who, by virtue of an Act, has the same status as a Justice or Judge of a federal court or of the Supreme Court of a Territory;

 (d) the holder of an office of Secretary within the meaning of the Public Service Act 1999; or

 (e) a head of mission within the meaning of the Vienna Convention on Diplomatic Relations, a copy of the English text of which is set out in the Schedule to the Diplomatic Privileges and Immunities Act 1967, or a head of consular post within the meaning of the Vienna Convention on Consular Relations, a copy of the English text of which is set out in the Schedule to the Consular Privileges and Immunities Act 1972, being a mission sent, or consular post established, by Australia; or

 (f) the holder of a public office within the meaning of Part II of the Remuneration Tribunal Act 1973.

hypothetical taxpayer means a hypothetical taxpayer where the following assumptions are made:

 (a) that the taxpayer is an individual;

 (b) that the taxpayer is not a trustee;

 (c) that the taxpayer is a resident for the purposes of the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997, as appropriate;

 (d) that the taxpayer has no entitlement to a rebate or credit under either of those Acts;

 (e) that no deductions are allowable to the taxpayer under either of those Acts.

income tax has the same meaning as in the Income Tax Assessment Act 1936.

medicare levy has the same meaning as in Part VIIB of the Income Tax Assessment Act 1936.

Minister means:

 (a) in relation to a State—a Minister of the Crown for the State; and

 (b) in relation to a Territory—a person holding, in relation to the Territory, an office corresponding to the office of Minister of the Crown for a State.

Parliament, in relation to the Australian Capital Territory means the Legislative Assembly for the Australian Capital Territory, and in relation to the Northern Territory, means the Legislative Assembly of the Northern Territory.

relevant benefit means:

 (a) a retiring allowance under section 18, and includes additional retiring allowance under subsection 18(9); or

 (b) an annuity under section 19.

remuneration includes any annual allowance, but does not include:

 (a) any amount paid for the reimbursement of expenses reasonably incurred; or

 (b) any remuneration payable under section 14 of the Parliamentary Business Resources Act 2017.

Secretary means the Secretary of the Department.

State includes Territory.

taxable income has the same meaning as in the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997, as appropriate.

year of income means:

 (a) a year of income (within the meaning of the Income Tax Assessment Act 1936); or

 (b) an income year (within the meaning of the Income Tax Assessment Act 1997);

as appropriate.

 (2) Subject to subsection (4), if the following conditions are satisfied in relation to a person who is entitled to a relevant benefit:

 (a) the person is:

 (i) the holder of an office of profit under the Commonwealth; or

 (ii) the holder of an office of profit under a State;

 (b) the person receives remuneration in respect of the office;

 (c) the fortnightly rate of the remuneration exceeds 20% of the fortnightly rate of parliamentary allowance for the time being payable to a member;

the fortnightly rate at which the relevant benefit would otherwise be payable to the person is to be reduced by 50 cents for each $1 of the excess.

Note: See subsection (3A) for the calculation of the fortnightly rate of parliamentary allowance payable to a member.

 (2A) For the purposes of working out the reduction of a relevant benefit under subsection (2), if the remuneration referred to in that subsection is exempt from income tax, the fortnightly rate of the remuneration is taken to be the fortnightly grossed‑up amount of the remuneration.

 (3) If the remuneration by reference to which the relevant benefit is to be reduced under subsection (2) is payable otherwise than on a fortnightly basis, the fortnightly rate of the remuneration is taken to be the rate that the Trust determines in writing is the equivalent of a fortnightly rate.

 (3A) For the purposes of working out the reduction of a relevant benefit under subsection (2), the fortnightly rate of parliamentary allowance payable to a member is the amount worked out using the formula:

  Start formula start fraction Annual rate of parliamentary allowance over 365 end fraction times 14 end formula

 (3B) For the purpose of the reference in the formula in subsection (3A) to the annual rate of parliamentary allowance, any reductions under Division 3 of Part 2 of the Parliamentary Business Resources Act 2017 (about salary sacrifice) of a particular member’s entitlement to parliamentary allowance are to be disregarded.

 (4) Notwithstanding anything contained in subsection (2), the rate of a relevant benefit to which a person is entitled shall not be reduced, or continue to be reduced, under that subsection by a rate that is more than one‑half of the rate at which the relevant benefit would have been payable to the person but for that subsection and:

 (aa) if subsection 18A(6) applies, whether directly or indirectly, in relation to the relevant benefit—that subsection; and

 (a) if subsection 18B(6) applies, whether directly or indirectly, in relation to the relevant benefit—that subsection; and

 (b) if subsection 20(3A) applies, whether directly or indirectly, in relation to the relevant benefit—that subsection.

 (5) In the event of a person who is entitled to a relevant benefit becoming:

 (a) the holder of an office of profit under the Commonwealth; or

 (b) the holder of an office of profit under a State;

the person shall, within 14 days after the occurrence of the event, notify the Secretary, in writing, accordingly.

Penalty for contravention of subsection: 15 penalty units.

Note: Part IA of the Crimes Act 1914 contains provisions dealing with penalties.

 (6) The Secretary or an authorized officer may, by notice in writing served, personally or by post, on a person who is entitled to a relevant benefit (whether or not the relevant benefit is immediately payable), require the person to furnish to the Secretary, within such reasonable time as is specified in the notice, such information as is specified in the notice, being information that, in the opinion of the Secretary or the authorized officer, as the case may be, is or may be relevant to the application of this section to the person.

 (7) A person shall not refuse or fail duly to furnish information that he or she is required to furnish by virtue of a notice under subsection (6).

Penalty for contravention of subsection: Imprisonment for 6 months, or 30 penalty units, or both.

Note: Part IA of the Crimes Act 1914 contains provisions dealing with penalties.

 (8) Subsection (7) does not apply if the person has a reasonable excuse.

Note: A defendant bears an evidential burden in relation to the matter in subsection (8) (see subsection 13.3(3) of the Criminal Code).

22  Certain disqualifications

  A member whose place becomes vacant by reason of his or her becoming subject to any of the disabilities specified in paragraphs 44(i) and (ii) of the Constitution, or by reason of his or her having directly or indirectly taken or agreed to take any fee or honorarium for services rendered in the Parliament to any person or State within the meaning of paragraph 45(iii) of the Constitution, shall be entitled to a refund of his or her contributions, but to no other benefit under this Act.

22A  Determination with respect to surcharge deduction amount

 (1) The Trust must, in accordance with advice received from an actuary, determine in writing the conversion factor that, having regard to:

 (a) the age of a member when a benefit under section 18 becomes payable to him or her; and

is applicable for the purpose of working out, in relation to the member, the yearly amount that would have to be paid to discharge a liability equal to the member’s surcharge deduction amount.

 (2) A determination under subsection (1) must be published in the Gazette.