18Benefits to members

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:  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:  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:  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.