18ACommutation of retiring allowance—payment of surcharge liability

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:    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.