This regulation prescribes how NSW Police superannuation benefits are valued, reduced and paid — including rules for early releases, income‑tax and no‑TFN reductions, surcharge handling, family‑law payment splits and medical‑board examinations. It sets calculation formulas, creates debt accounts and requires notices and annual statements.
STC has statutory discretion to determine reductions, obtain actuarial advice and make payments to contributors or the Commissioner of Taxation; contributors, beneficiaries and non‑contributor spouses must supply information, nominations and comply with specified timeframes.
This regulation (Police Superannuation Regulation 2025) updates and consolidates a range of operational rules that implement the Police Regulation (Superannuation) Act 1906 (the Act). It comes into force on 1 September 2025 and expressly replaces the Police Superannuation Regulation 2020 (see s 2). Mechanically, the instrument does the following.
Prescribes definitions and technical terms used in the Act and this regulation (s 3). Those definitions determine how several reduction, surcharge and family law provisions are to be calculated and applied.
Prescribes a small, specific class of additional persons to whom the Act applies for the purpose of s 1A (s 4), and prescribes a date relevant to that provision (s 4(2)).
Specifies what counts as salary of office for most members of the NSW Police Force (s 5): certain qualification bonuses are included; specified allowances are excluded from “salary of office”.
Fixes the meaning of an initial period of leave for retirement/leave calculations (s 6).
Implements detailed rules for reducing benefits where benefits have been released early for severe financial hardship or compassionate grounds (Div 1: ss 7-10), including a written-consent requirement before reducing future benefits (s 8) and the creation and treatment of debt accounts (s 9).
Sets out formulae and methods for reducing benefits to reflect income tax changes or Commonwealth superannuation contribution taxation impacts (Div 2: ss 11-15). These include the mechanics for calculating the component of a benefit attributable to employer contributions (s 13), an aggregate tax-rate weighting across a person’s service (s 14), and special rules for benefits first payable in certain historical periods (s 15).
Current sections
Direct links to the current provisions in Police Superannuation Regulation 2025.
additional surcharge amount means the amount of superannuation contributions surcharge assessed to be payable in accordance with a post payment surcharge assessment notice.
Commissioner of Taxation means the person holding office for the time being as Commissioner of Taxation under a law of the Commonwealth.
contributor, for Part 4—see section 21.
deferred benefit, for Part 4—see section 21.
former member of the police force, for Part 5—see section 28.
police medical officer, for Part 5—see section 28.
Police Superannuation Scheme, for Part 4—see section 21.
post payment surcharge assessment notice means a notice of the assessment of a superannuation contributions surcharge under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth in relation to employer contributions paid to the Fund on behalf of a former contributor.
surcharge deduction cap means the maximum surcharge deduction amount that may be determined by STC under the Act, section 14AA(1C) in relation to a benefit payable to a former contributor.
total surcharge amount, for a former contributor, means the sum of the following—
(a) the total superannuation contributions surcharge assessed to be payable in relation to employer contributions paid to the Fund on the former contributor’s behalf, up to and including the date on which the former contributor receives a post payment surcharge assessment notice,
(b) the general interest charged for the additional surcharge amount payable under the notice,
(c) the interest payable on the surcharge debt account, within the meaning of the Act, section 14AA, kept in relation to the former contributor.
Note—
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
4
Additional members of police force to whom Act applies—the Act, s 1A
4 Additional members of police force to whom Act applies—the Act, s 1A
4 Additional members of police force to whom Act applies—the Act, s 1A
(1) For the Act, section 1A(1)(c), the class of members consisting of the following persons is prescribed—
(a) Robert Allan Shankleton—Registered No 24929,
(b) Shaun Patrick Moloney—Registered No 25077,
(c) Jennifer Louise Cullane—Registered No 25777.
(2) For the Act, section 1A(2), 23 October 1992 is prescribed.
Part 2
Salary and leave
Part 2 Salary and leave
Part 2 Salary and leave
5
Salary of office for members of NSW Police Force other than executive officers—the Act, s 1
5 Salary of office for members of NSW Police Force other than executive officers—the Act, s 1
5 Salary of office for members of NSW Police Force other than executive officers—the Act, s 1
(1) For the Act, section 1(2), definition of salary of office, paragraph (a), salary of office includes remuneration received as a bonus for a member of the police force attaining any of the following qualifications—
(a) Associate Diploma in Justice Administration,
(b) Diploma in Criminology,
(c) Bachelor of Laws.
(2) For the Act, section 1(2), definition of salary of office, paragraph (a)(vii), remuneration received as any of the following is exempt—
(a) a soiled clothing allowance,
(b) a shift allowance,
(c) a stocking allowance.
6
Initial period of leave—the Act, s 5A
6 Initial period of leave—the Act, s 5A
6 Initial period of leave—the Act, s 5A
For the Act, section 5A(1), definition of initial period, the following periods are prescribed—
(a) for a period of leave that is less than 3 months—that period of leave,
(b) for a period of leave that is 3 months or more—3 months.
Part 3
Reduction of benefits
Part 3 Reduction of benefits
Part 3 Reduction of benefits
Division 1
Reduction relating to early release of benefits—the Act, s 12H
Division 1 Reduction relating to early release of benefits—the Act, s 12H
Division 1 Reduction relating to early release of benefits—the Act, s 12H
7
Application of division
7 Application of division
7 Application of division
The following benefits may be reduced under this division—
(a) the benefits provided under the Act, sections 5B, 7, 7AA, 8A, 9B, 9C, 10, 13, 13A, 14 and 14J,
(b) the benefits provided under the Act, section 12, except the benefit payable under the Act, section 12(1) if the prescribed rate for that benefit is set out in the Act, section 12(1AA)(b)(ii).
8
Consent to benefit reduction
8 Consent to benefit reduction
8 Consent to benefit reduction
Before releasing a benefit on the ground of severe financial hardship or on compassionate grounds, STC must obtain the written consent of the contributor or former contributor to the reduction of future benefits as a consequence of the early release.
9
Reduction of benefits
9 Reduction of benefits
9 Reduction of benefits
(1) This section applies to the reduction of benefits payable to, or in relation to, a contributor or former contributor to whom a benefit (an early release benefit) has been released under the Act, section 12F or 12G.
(2) If an early release benefit is released to a former contributor who has provided for a benefit under the Act, section 9B, or had a benefit preserved under the Act, section 9C, STC must—
(a) on and from the date of release—
(i) calculate the amount of the benefit provided for or preserved, and
(ii) reduce the amount of the benefit provided for or preserved by the amount of the early release benefit, and
(b) when the benefit provided for or preserved is payable—reduce the amount of the benefit by the amount of the early release benefit.
(3) If subsection (2) does not apply, STC must—
(a) create a debt account in the Fund in relation to the contributor or former contributor, and
(b) when a benefit is payable—reduce the benefit that is payable by the amount debited to the debt account at the time the benefit is payable.
(4) Despite subsection (3), if a benefit is provided for or preserved under the Act, section 9B or 9C after the release of an early release benefit and before a benefit is otherwise payable to the contributor, STC must—
(a) on and from the date the benefit is provided for or preserved—
(i) calculate the amount of the benefit provided for or preserved, and
(ii) reduce the amount of the benefit provided for or preserved by the amount debited to the debt account at the time the benefit is provided for or preserved, and
(b) when the benefit provided for or preserved is payable—reduce the amount of the benefit by the amount debited to the debt account at the time the benefit was provided for or preserved.
(5) For subsections (3) and (4), the amount debited to the debt account must be the sum of—
(a) the amount of all early release benefits released to the contributor, and
(b) interest on the amount at a rate determined by STC.
(6) STC may obtain actuarial advice for the purposes of determining the amount of a reduced benefit.
(7) For subsections (2) and (4), STC may determine which component or components of a benefit are to be reduced.
(8) This section does not apply to reduce an early release benefit payable under the Act, section 12F or 12G.
10
Commutation of superannuation allowances
10 Commutation of superannuation allowances
10 Commutation of superannuation allowances
(1) This section applies if a benefit reduced under this division may be taken in the form of a superannuation allowance.
(2) STC may, with the consent of the person to whom the allowance is payable, commute part of the unreduced allowance to a lump sum for the purposes of the payment to STC of the amount of the reduction.
(3) Commutation of part of the superannuation allowance—
(a) does not affect another right that the person has to commute the allowance under the Act, and
(b) must not be taken into account for the purposes of determining whether, and to what extent, any other right may be exercised, and
(c) must be done on a basis determined by STC.
(4) STC may obtain actuarial advice for the purpose of determining the basis on which part of a superannuation allowance is to be commuted under this section.
Division 2
Reductions relating to income tax—the Act, s 14AA
Division 2 Reductions relating to income tax—the Act, s 14AA
Division 2 Reductions relating to income tax—the Act, s 14AA
11
Prescribed benefits
11 Prescribed benefits
11 Prescribed benefits
For the Act, section 14AA(2)(a), the following benefits are prescribed—
(a) the benefits provided under the Act, sections 5B, 7, 7AA, 8A, 9B, 10, 13A, 14 and 14J,
(b) the benefits provided under the Act, section 12, except—
(i) the benefit payable under the Act, section 12(1) if the prescribed rate for that benefit is set out in the Act, section 12(1AA)(b)(ii), and
(ii) the benefit payable as a result of an election under the Act, section 12(1A) to take a gratuity equivalent to the gratuity prescribed by the Act, section 13.
12
Reduction in benefits
12 Reduction in benefits
12 Reduction in benefits
(1) For the Act, section 14AA(2)(b), the following method of calculating a reduction is prescribed—
where—
R is the amount of the reduction.
M is the amount of the benefit being reduced.
A is the portion of the benefit attributable to employer contributions, which is calculated in accordance with section 13.
B is the value of the benefit, calculated as—
(a) for a gratuity benefit, a preserved benefit or a lump sum benefit for which an election has been made or is deemed to have been made under the Act, section 14J that must be paid to or in relation to the member or former member of the police force—the amount of that benefit, or
(b) for an allowance that must be paid to or in relation to the member or former member—the amount calculated by STC as the capitalised value of the benefits payable to or in relation to the member or former member.
Q is the sum of the number of terms determined in accordance with section 14 to reflect the number of times the rate of tax, being the tax referred to in the Act, section 14AA(1), has changed.
(2) No benefit reduction applies where the value of A is less than 0.
13
Portion attributable to employer contributions
13 Portion attributable to employer contributions
13 Portion attributable to employer contributions
(1) For section 12, A is calculated by subtracting the sum of the following amounts from the amount represented by B—
(a) the total amount deducted under the Act from the salary of office of the member or former member of the police force, from the date when the member or former member last became a member of the police force to the date on which the member or former member stopped being a member of the police force or died,
(b) the amount repaid by the member or former member to the Fund under the Act, section 17(3),
(c) interest—
(i) compounded on 30 June in each year for the period beginning on the later of the following—
(A) 23 November 1984,
(B) the day on which the member or former member last became liable to make contributions under the Act, and
(ii) compounded on the date on which the member or former member stopped being a member of the police force or died, and
(iii) calculated at the prescribed rate provided for by subsection (2) on the amount ascertained by adding the amounts referred to in paragraphs (a) and (b).
(2) For subsection (1)(c)(iii), the prescribed rate is—
(a) for the period beginning on 23 November 1984 and ending on 30 June 1990—4.5% per year, or
(3) Despite subsections (1) and (2), for section 12, is taken to be 1 if the benefit to be reduced is an increase in an allowance under the Act, section 10 or 12.
14
Aggregate rate of tax
14 Aggregate rate of tax
14 Aggregate rate of tax
(1) For section 12, Q is—
where—
C is the number of days of continuous service that the person had as a member of the police force in each period during which the rate of tax payable on employer contributions, as referred to in the Act, section 14AA, is L.
D is the number of days of continuous service that the person had as a member of the police force during the period beginning with the date when the person last became liable to make contributions under the Act and ending—
(a) for benefits under the Act, section 10 or 12—with the later of the date the person stopped being a member of the Fund and the date on which the person would have been eligible to retire under the Act, section 7 if the person’s employment as a member of the police force had continued to that date, or
(b) for all other cases—when the person stopped being a member of the Fund.
L is the rate of tax payable on employer contributions set out in the relevant Commonwealth taxation law or a lesser rate determined by STC, having regard to the most recent actuarial valuation of the scheme.
(2) In this section—
person means the person to or in relation to whom the benefit is payable.
Note—
The benefit that emerges on the death of a former member of the police force under the Act, section 11 or 12(1AA)(b)(ii) is not to be reduced because it is calculated as a proportion of the benefit payable to the former member and that benefit will already have been reduced in accordance with the Act, section 14AA.
15
Reduction in benefits relating to past benefits
15 Reduction in benefits relating to past benefits
15 Reduction in benefits relating to past benefits
(1) This section applies to a benefit payable on or after 1 July 2000 that is—
(a) a superannuation allowance under a provision referred to in section 7 that was first payable on or after 1 July 1988 and before 1 July 1997, or
(b) a superannuation allowance granted under the Act, section 11, 11AA, 11A, 11C or 12(1AA)(b)(ii) to the spouse of a former member of the police force who first received a superannuation allowance on or after 1 July 1988 and before 1 July 1997.
(2) In addition to other reductions calculated under this division, benefits to which this section applies must be reduced in accordance with this section.
(3) A benefit referred to in subsection (1)(a) must be reduced by an amount calculated by applying sections 12, 13 and 14 to the amount of the superannuation allowance when it was first payable.
(4) A benefit referred to in subsection (1)(b) must be reduced by an amount equal to 62.5% of the amount calculated by applying sections 12, 13 and 14 to the superannuation allowance paid to the former member whose spouse is receiving the allowance, on the date the allowance was first paid to the former member.
(5) In addition to a reduction calculated under subsection (3) or (4), a benefit to which this section applies must be further reduced by amounts calculated by applying sections 12, 13 and 14 to the amount of each increase, as at the date on which the increase was effected if—
(a) the benefit is a superannuation allowance payable under the Act, section 10 or 12, and
(b) the benefit has increased since the first date on which the benefit was payable.
(6) If a benefit has been reduced as a result of one or more commutations, the amount of reduction calculated under subsection (3), (4) or (5) must be diminished by multiplying it by a fraction equal to the proportion the benefit payable on 1 July 2000 bears to the benefit that would have been payable on that date if no commutation had occurred.
(7) For a superannuation allowance liable to adjustment under the Act, Part 4, Division 2, the amount of a reduction calculated under subsection (3), (4) or (5) must be adjusted for each year during which the allowance has been paid, ending on 1 July 2000, by the adjustment percentage for that year applied to the superannuation allowance under that division.
Division 3
Reductions relating to superannuation contributions surcharge—the Act, s 14AA
Division 3 Reductions relating to superannuation contributions surcharge—the Act, s 14AA
Division 3 Reductions relating to superannuation contributions surcharge—the Act, s 14AA
16
Prescribed benefits
16 Prescribed benefits
16 Prescribed benefits
For the Act, section 14AA(3), the following benefits are prescribed—
(a) the benefits provided under the Act, sections 5B, 7, 7AA, 8A, 9B, 10, 13, 13A, 14 and 14J,
(b) the benefits provided under the Act, section 12, except the benefit payable under the Act, section 12(1) if the prescribed rate for that benefit is set out in the Act, section 12(1AA)(b)(ii).
17
Reduction for superannuation contributions surcharge
17 Reduction for superannuation contributions surcharge
17 Reduction for superannuation contributions surcharge
(1) For the Act, section 14AA(6), STC may, at the request of a former contributor—
(a) adjust the amount of a benefit payable to the former contributor by reducing the benefit by an amount (the reduction amount) equivalent to the lesser of—
(i) the additional surcharge amount, and
(ii) an amount, not less than $0, equal to the amount of the surcharge deduction cap less any previously met surcharge liability, and
(b) pay an amount equal to the reduction amount to the former contributor or to the Commissioner of Taxation.
(2) When determining an adjustment under this section, STC may obtain advice, including actuarial advice.
(3) This section does not authorise STC to pay an amount that would result in payments made to or on behalf of the former contributor being greater than the total benefits to which the former contributor is entitled.
(4) This section does not authorise STC to pay an amount of general interest charged for an additional surcharge amount payable under a post payment surcharge assessment notice unless the request for the payment is made within a period after the notice is received that STC considers reasonable.
(5) In this section—
previously met surcharge liability means the sum of—
(a) all amounts paid by the former contributor to STC or the Commissioner of Taxation in relation to the total surcharge amount of the former contributor, and
(b) all amounts for which adjustments relating to the benefit of the former contributor have previously been made under this section or the Act in relation to the superannuation contributions surcharge.
18
Surcharge deduction amount
18 Surcharge deduction amount
18 Surcharge deduction amount
For the Act, section 14AA(1C), the surcharge deduction amount determined by STC must not be more than the sum of—
(a) 15% of the employer-financed portion of that part of the benefit payable to the contributor or former contributor that accrued after 20 August 1996 and before 1 July 2003, and
(b) 14.5% of the employer-financed portion of that part of the benefit payable to the contributor or former contributor that accrued on or after 1 July 2003 and before 30 June 2004, and
(c) 12.5% of the employer-financed portion of that part of the benefit payable to the contributor or former contributor that accrued on or after 1 July 2004 and before 30 June 2005.
Division 4
Reductions relating to no-TFN tax—the Act, s 14AD
Division 4 Reductions relating to no-TFN tax—the Act, s 14AD
Division 4 Reductions relating to no-TFN tax—the Act, s 14AD
19
Reductions relating to no-TFN tax
19 Reductions relating to no-TFN tax
19 Reductions relating to no-TFN tax
(1) For the Act, section 14AD(1)(d), the benefits provided under the Act, sections 5B, 7, 7AA, 8A, 9B, 10, 12, 13, 13A, 14 and 14J are prescribed.
(2) STC must create a debt account in the Fund for each contributor or former contributor whose benefit is liable to be reduced under the Act, section 14AD.
(3) STC must have regard to the debt account when determining the amount of the reduced benefit.
Note—
Under the Act, section 14AD(3), the amount of the reduced benefit is to be determined by STC after obtaining advice.
20
Provision of information
20 Provision of information
20 Provision of information
STC must, at least once a year—
(a) give each contributor and former contributor for whom a debt account is created under section 19 a statement of the account balance, and
(b) if a tax file number has not been previously given to STC for a contributor or former contributor—request that the contributor or former contributor give a tax file number to STC.
For the Act, section 14P(5)(a) and (b), the prescribed period is 60 days after notice is given to a non-contributor spouse under section 24(1).
24
Notice when entitlement becomes payable—the Act, s 14R(e)
24 Notice when entitlement becomes payable—the Act, s 14R(e)
24 Notice when entitlement becomes payable—the Act, s 14R(e)
(1) STC must give a contributor and non-contributor spouse written notice if the contributor’s superannuation interest is subject to a payment split.
(2) The notice must be given—
(a) for a payment split under a superannuation agreement or flag lifting agreement—within 28 days after the operative time for the payment split, or
(b) for a payment split under a splitting order—within 28 days after the later of the following—
(i) the operative time for the payment split,
(ii) the day STC receives the order.
(3) The notice given to the contributor must specify the following—
(a) the estimated amount of the non-contributor spouse’s family law superannuation entitlement,
(b) how the amount was calculated,
(c) the period within which the amount will be paid,
(d) the estimated effect of the payment on the contributor’s entitlement under the Police Superannuation Scheme.
(4) The notice given to the non-contributor spouse must—
(a) specify the following—
(i) the estimated amount of the non-contributor spouse’s family law superannuation entitlement,
(ii) how the amount was calculated,
(iii) the circumstances in which the amount may be paid or released to the non-contributor spouse,
(iv) the circumstances in which the amount must be transferred or rolled over to a complying superannuation fund or RSA, and
(b) require the non-contributor spouse to, within the period prescribed under section 23—
(i) if the non-contributor spouse meets a circumstance for payment or release—provide details as to the required method of payment, or
(ii) otherwise—nominate a complying superannuation fund or RSA to which the amount must be paid, and
(c) specify that the amount will be credited to the Aware Super Fund if, within the period prescribed under section 23—
(i) the details are not provided, or
(ii) the nomination is not made.
(5) STC is not required to give the notice if the superannuation interest stops being subject to a payment split within the notice period specified in subsection (2).
(6) In this section—
operative time has the same meaning as in the Family Law Act 1975 of the Commonwealth, Part VIIIB.
25
Family law superannuation entitlements—the Act, s 14R(f)
25 Family law superannuation entitlements—the Act, s 14R(f)
25 Family law superannuation entitlements—the Act, s 14R(f)
(1) STC must pay a family law superannuation entitlement within the following periods—
(a) for a payment in the circumstance specified in the Act, section 14P(3)(a)—as soon as practicable after receiving a nomination from the non-contributor spouse,
(b) for a payment in the circumstance specified in the Act, section 14P(3)(b)—within 30 days after receiving the non-contributor spouse’s nomination of a complying superannuation fund or RSA,
(c) for a payment in the circumstances specified in the Act, section 14P(5)—within 30 days after the end of the period prescribed under section 23.
(2) STC must, within 28 days after taking an action specified in subsection (1), give the contributor and non-contributor spouse a written notice stating the following—
(a) that STC paid, released, transferred or rolled over the family law superannuation entitlement,
(b) the amount of the entitlement,
(c) how the amount was calculated,
(d) in the notice given to the contributor—the estimated amount of adjustment made to the benefit of the contributor,
(e) in the notice given to the non-contributor spouse, if the amount was transferred or rolled over to a superannuation fund or RSA—the name and contact details of the superannuation fund or RSA.
Note—
See the Family Law (Superannuation) Regulations 2025 of the Commonwealth, regulation 98 in relation to the fees STC may charge in relation to certain actions taken under this section.
26
Reduction of benefits of contributor spouses—the Act, s 14R(i)
26 Reduction of benefits of contributor spouses—the Act, s 14R(i)
26 Reduction of benefits of contributor spouses—the Act, s 14R(i)
(1) If a family law superannuation payment is made, the benefit payable to the contributor under the Act must be reduced in accordance with subsection (2) at the following times—
(a) for a benefit, including a benefit transferred under the Act, other than a deferred benefit—when the benefit is paid or transferred to the contributor,
(b) for a deferred benefit—
(i) if the benefit is deferred before the family law superannuation payment is made—when the payment is made, or
(ii) if the benefit is deferred after the family law superannuation payment is made—when the benefit is deferred.
(2) The benefit must be reduced in accordance with the following calculation—
where—
R is the amount of the reduced benefit.
V is the amount of the benefit that would have been payable to the contributor if the family law superannuation payment had not been made.
A is the ratio of the amount of the family law superannuation payment made to the non-contributor spouse to the value of the contributor’s benefit when the payment split occurred.
C is the ratio of the benefit accrual when the payment split occurred to the benefit accrual when the benefit is payable, deferred or transferred, as the case requires.
(3) If family law superannuation payments are made to, or in relation to, more than one non-contributor spouse, the amount of the contributor’s reduced benefit is further reduced by multiplying the reduced benefit by the following reduction factor for each family law superannuation payment—
where—
F is the reduction factor.
A and C have the same meanings as in subsection (2).
(4) Subsection (3) does not apply if the reduced benefit is a deferred benefit.
(5) In this section—
benefit accrual, for a benefit at a point in time, means the benefit accrual at that time as determined by STC in accordance with actuarial advice.
made, in relation to a family superannuation payment, means paid, released, transferred or rolled over to, or in relation to, the non-contributor spouse.
value, of a benefit, means the value of the benefit as determined by STC in accordance with actuarial advice.
27
Effect of benefit reductions on other benefits—the Act, s 14R
27 Effect of benefit reductions on other benefits—the Act, s 14R
27 Effect of benefit reductions on other benefits—the Act, s 14R
(1) For the Act, section 14R(k)—
(a) STC may commute part of a superannuation allowance payable to a contributor for the purposes of paying the family law superannuation entitlement of a non-contributor spouse, and
(b) the amount of the superannuation allowance is reduced in accordance with section 26.
(2) For the Act, section 14R(j), if a benefit is payable under the Act to a person on the death of a contributor whose benefit has been, or is to be, reduced because of a family law superannuation payment, the benefit payable to the person is determined according to the reduced benefit.
(3) Nothing in this part affects any other right of a contributor or other person to commute a superannuation allowance or part of a superannuation allowance under the Act.
Part 5
Police Medical Board and medical examinations—the Act, s 15A
Part 5 Police Medical Board and medical examinations—the Act, s 15A
Part 5 Police Medical Board and medical examinations—the Act, s 15A
28
Definitions
28 Definitions
28 Definitions
In this part—
former member of the police force means a person whose service as a member of the police force ended before 1 April 1988.
police medical officer means a person appointed to the position of medical officer in the NSW Police Force.
29
Application of part
29 Application of part
29 Application of part
This part only applies in relation to former members of the police force.
30
Member of Police Medical Board not to act in certain circumstances
30 Member of Police Medical Board not to act in certain circumstances
30 Member of Police Medical Board not to act in certain circumstances
A member of the Police Medical Board must not act as a member of the Board if—
(a) the Board is considering a possible infirmity of mind or body of a former member of the police force, and
(b) the member has treated or seen the former member of the police force professionally in connection with the possible infirmity.
31
Police Medical Board to consider fitness only
31 Police Medical Board to consider fitness only
31 Police Medical Board to consider fitness only
The Police Medical Board must only deal with the following when examining a former member of police force—
(a) the medical condition of the former member,
(b) the medical fitness for duty of the former member.
32
Medical examination procedure
32 Medical examination procedure
32 Medical examination procedure
(1) The examination of a former member of the police force by the Police Medical Board must be carried out by 2 members of the Board.
(2) A police medical officer must be present at the consultation if requested by the members carrying out the examination.
33
Application for examination by Police Medical Board
33 Application for examination by Police Medical Board
33 Application for examination by Police Medical Board
(1) A former member of the police force who has resigned or retired may apply to STC for the grant of an annual superannuation allowance under the Act, section 10.
(2) The former member must give STC the following—
(a) particulars of the infirmity that rendered the former member medically unfit for duty,
(b) particulars of the injury received while the former member was a member of the police force that caused the infirmity,
(c) particulars of any illness or injury the former member has suffered since leaving the police force,
(d) particulars of the former member’s paid or unpaid employment since leaving the police force,
(e) a list of the names of the medical practitioners the former member has consulted, or by whom the former member has been treated, in connection with the infirmity,
(f) all relevant medical certificates or reports.
Note—
It is an offence under the Crimes Act 1900, Part 5A to knowingly provide false or misleading information or knowingly omit a matter or thing without which the information is misleading in purported compliance with a law of the State.
(3) The former member must submit to a medical examination by one or more of the following as requested by STC or the Commissioner of Police—
(a) a police medical officer,
(b) the Police Medical Board,
(c) one or more other medical practitioners.
(4) In this section—
medically unfit for duty means incapable, from a specified infirmity of body or mind, of discharging the duties of office.
Part 6
Miscellaneous
Part 6 Miscellaneous
Part 6 Miscellaneous
34
Information about beneficiaries
34 Information about beneficiaries
34 Information about beneficiaries
(1) STC, when considering a case involving payment to a beneficiary, may require the beneficiary to produce documents STC considers necessary.
Note—
It is an offence under the Crimes Act 1900, Part 5A to knowingly produce documents that are false or misleading in purported compliance with a law of the State.
(2) The beneficiary must not fail to produce a document required by STC under subsection (1).
Maximum penalty—5 penalty units.
(3) The beneficiary must promptly notify STC, in writing, of any change of address.
(4) In this section—
beneficiary means a person who is entitled to receive a superannuation allowance or gratuity from the Fund.
35
Payment of amounts in excess of surcharge deduction cap—the Act, s 14AA(6) and (7)
35 Payment of amounts in excess of surcharge deduction cap—the Act, s 14AA(6) and (7)
35 Payment of amounts in excess of surcharge deduction cap—the Act, s 14AA(6) and (7)
(1) If a former contributor pays a total surcharge amount to the Commissioner of Taxation that is greater than the surcharge deduction cap, STC may reimburse the former contributor by paying the former contributor an amount equal to the amount calculated in accordance with subsection (3).
(2) If a former contributor receives a post-payment surcharge assessment notice in relation to an additional surcharge amount that results in the total surcharge amount being greater than the surcharge deduction cap, STC may, at the request of the former contributor, pay the Commissioner of Taxation on behalf of the former contributor an amount equal to the amount calculated in accordance with subsection (3).
(3) The amount payable must be calculated as follows—
where—
R is the amount payable.
A is the amount by which the total surcharge amount is greater than the surcharge deduction cap.
B is the amount previously reimbursed to or paid in relation to the former contributor by STC under this section or the Act for the purposes of superannuation contributions surcharge.
(4) This section does not authorise STC to pay an amount of general interest charged in relation to an additional surcharge amount payable under a post-payment surcharge assessment notice unless the request for payment is made—
(a) by the former contributor, and
(b) within a reasonable period after receiving the notice, as determined by STC.
Note—
Section 17 provides for further reduction of certain benefits resulting from the liability of a former contributor for superannuation contributions surcharge.
36
Transitional provision relating to gratuities—the Act, Schedule 6, clause 1
In determining whether to grant a gratuity under the Act, section 12D, STC may rely on a decision of the Commissioner of Police made under that section before 8 July 2005, whether or not the Commissioner made the relevant decision at the request of STC.
37
Savings
37 Savings
37 Savings
An act, matter or thing that, immediately before the repeal of the Police Superannuation Regulation 2020, had effect under that regulation continues to have effect under this regulation.
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
Part 1 Preliminary
1 Name of regulation
1 Name of regulation
1 Name of regulation
This regulation is the Police Superannuation Regulation 2025.
2 Commencement
2 Commencement
2 Commencement
This regulation commences on 1 September 2025.
Note—
This regulation replaces the Police Superannuation Regulation 2020, which is repealed on 1 September 2025 by the Subordinate Legislation Act 1989, section 10(2).
3 Definitions
3 Definitions
3 Definitions
In this regulation—
additional surcharge amount means the amount of superannuation contributions surcharge assessed to be payable in accordance with a post payment surcharge assessment notice.
Commissioner of Taxation means the person holding office for the time being as Commissioner of Taxation under a law of the Commonwealth.
contributor, for Part 4—see section 21.
deferred benefit, for Part 4—see section 21.
former member of the police force, for Part 5—see section 28.
police medical officer, for Part 5—see section 28.
Police Superannuation Scheme, for Part 4—see section 21.
post payment surcharge assessment notice means a notice of the assessment of a superannuation contributions surcharge under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth in relation to employer contributions paid to the Fund on behalf of a former contributor.
surcharge deduction cap means the maximum surcharge deduction amount that may be determined by STC under the Act, section 14AA(1C) in relation to a benefit payable to a former contributor.
the Act means the Police Regulation (Superannuation) Act 1906.
total surcharge amount, for a former contributor, means the sum of the following—
(a) the total superannuation contributions surcharge assessed to be payable in relation to employer contributions paid to the Fund on the former contributor’s behalf, up to and including the date on which the former contributor receives a post payment surcharge assessment notice,
Prescribes which benefits may be reduced in respect of the Commonwealth superannuation contributions surcharge and the method for permitting STC to pay an amount to meet surcharge liabilities (Div 3: ss 16-18). It also sets limits on the “surcharge deduction amount” STC may determine (s 18).
Implements no-TFN tax reductions, requiring STC to create and maintain debt accounts for contributors whose benefits are liable to be reduced for no-TFN tax (Div 4: ss 19-20). STC must provide annual statements for those accounts and request TFNs where absent (s 20).
Implements family law-related valuation, notice and payment processes for payment splits under family law (Part 4: ss 21-27). That includes specifying approved valuation methods (s 22), the notice content and timing that STC must give to contributors and non-contributor spouses (s 24), the period for a non-contributor spouse to respond (s 23), payment timing (s 25) and the reduction methodology for contributor benefits following family-law payments (s 26). The regulation also prescribes a default recipient , the Aware Super Fund , if a non-contributor spouse fails to nominate a complying fund within the prescribed period (s 24(4)(c)).
Clarifies medical-board and medical-examination procedures that apply only to former members whose service ended before 1 April 1988 (Part 5: ss 28-33). It prescribes who may examine, conflict rules for Board members (s 30), limits the Board to considering medical fitness only (s 31), sets the number of members to conduct an examination (s 32), and requires specified information for applications (s 33).
Prescribes miscellaneous administrative powers and obligations: STC’s power to require beneficiaries to produce documents and the penalty for non-compliance (s 34), reimbursement mechanics where surcharge payments exceed a statutory cap (s 35), a transitional provision about reliance on earlier Commissioner of Police decisions for certain gratuity matters (s 36), and a savings clause maintaining effect of acts done under the prior 2020 regulation (s 37).
The regulation repeatedly delegates operational discretion to STC (for example to determine interest rates, obtain actuarial advice, determine components to reduce and to set “reasonable periods” for making certain requests). It also ties certain calculations to external Commonwealth instruments (Family Law (Superannuation) Regulations/Approvals) and the Commissioner of Taxation for surcharge dealings. The instrument therefore mixes fixed procedures and timelines (notices, payment windows) with significant agency discretion in valuation, interest, and timing-sensitive reimbursements.
Main concepts
This regulation operates through a set of interlocking technical concepts. The most important concepts, and how this regulation defines or treats them, are:
Definitions that control application and calculation. Section 3 supplies discrete, operative definitions: “additional surcharge amount”, “post payment surcharge assessment notice”, “total surcharge amount”, “surcharge deduction cap”, “Commissioner of Taxation” and cross-references to definitions in the Act and Interpretation Act. Those terms feed the mechanics of reductions and reimbursements (see Divs 2-4 and s 35). The regulation instructs readers to use the Act and the Interpretation Act for other interpretive questions (s 3, note).
Salary of office. Section 5 specifies what counts towards “salary of office” for non-executive NSW Police Force members for the Act’s purposes. It includes bonuses for certain tertiary qualifications (Associate Diploma in Justice Administration; Diploma in Criminology; Bachelor of Laws) and expressly excludes three allowances (soiled clothing allowance; shift allowance; stocking allowance). That classification affects contribution and benefit calculations under the Act (s 5).
Early-release benefits and future benefit reductions. Division 1 (ss 7-10) sets out which benefits may be reduced when an early release is granted (s 7) and requires written consent from the contributor/former contributor to reduce future benefits as a consequence of early release (s 8). The mechanism for reduction is either direct offset against a provided or preserved benefit (s 9(2)) or the creation of a “debt account” debiting the amount of early release plus interest (s 9(3)-(5)). STC may obtain actuarial advice and determine which benefit components to reduce (s 9(6)-(7)). Where the reduced benefit is an allowance, STC may commute part of the allowance to a lump sum to fund the reduction, subject to consent (s 10).
Tax-driven reductions. Division 2 (ss 11-15) prescribes benefits subject to reduction for aggregate tax changes (s 11) and prescribes a formulaic method for calculating reductions (s 12). The formula draws on: M (amount of benefit), A (portion attributable to employer contributions per s 13), B (value of the benefit as capitalised or nominal amount), and Q (an aggregate rate of tax term that weights different historic tax rates according to days of continuous service, s 14). Section 13 contains a retrospective component to determine A: it deducts member contributions, repayments, and applies interest from 23 November 1984 with a two-tier prescribed rate regime (4.5% p.a. to 30 June 1990, then the rate fixed under the State Authorities Superannuation Act 1987, s 16, thereafter).
Superannuation contributions surcharge adjustments and caps. Division 3 (ss 16-18) fixes which benefits may be adjusted in relation to the Commonwealth’s superannuation contributions surcharge (s 16). Section 17 allows STC, at the request of a former contributor, to reduce a benefit to produce a payment equal to the lesser of the additional surcharge amount or the balance of the surcharge deduction cap (less prior met liability). STC may pay the amount to the former contributor or to the Commissioner of Taxation, subject to limits (s 17(1)-(3)). Section 18 caps any surcharge deduction amount STC determines using a percentage schedule applied to employer-financed portions for specific accrual periods (15% post‑20 Aug 1996 to 1 Jul 2003; 14.5% for 1 Jul 2003-30 Jun 2004; 12.5% for 1 Jul 2004-30 Jun 2005).
No-TFN tax reductions and debt accounts. Division 4 (ss 19-20) prescribes benefits liable to reduction for no-TFN tax (s 19(1)), requires STC to create debt accounts for affected contributors (s 19(2)), and to provide annual statements and request TFNs (s 20(1)-(b)). STC must have regard to the debt account when calculating reduced benefits (s 19(3)).
Family law valuation, notice and payment mechanics. Part 4 (ss 21-27) ties the valuation and payment-split process to Commonwealth family law instruments. Section 22 prescribes valuation methods: non‑deferred benefits use the “approved valuation method” (driven by Family Law Approvals 2025, Schedule 2 Part 5 for Police Superannuation Scheme benefits) while deferred benefits follow the Commonwealth Family Law (Superannuation) Regulations 2025, Schedule 3 Part 8. Section 24 prescribes notice content and timing to contributors and non-contributor spouses following a payment split, requires a non-contributor spouse to respond within the prescribed period (s 23 sets that as 60 days), specifies default destination where nomination is not made (Aware Super Fund, s 24(4)(c)), and sets payment timeframes (s 25).
Police Medical Board processes for older cases. Part 5 (ss 28-33) applies only to former members whose service ended before 1 April 1988 (s 29). It limits the Board to considering medical fitness only (s 31), imposes a recusal rule where a Board member has previously treated the former member (s 30), requires examinations to be performed by two members (s 32), and sets application requirements from claimants seeking annual superannuation allowances under s 10 of the Act (s 33).
Administrative powers, penalties and transitional savings. STC may require beneficiaries to produce documents (s 34), and failure attracts a maximum penalty of 5 penalty units (s 34(2)). Section 35 provides mechanics for STC to reimburse or pay amounts where surcharge payments to the Commissioner exceed the surcharge deduction cap. Section 36 allows STC to rely on certain pre-2005 Commissioner of Police decisions for gratuity decisions. Section 37 saves acts done under the repealed 2020 regulation.
These concepts interact through a combination of formulae (reduction calculations), agency determinations (STC’s discretion on actuarial advice, interest rates and timings), and cross-references to Commonwealth family law valuation regimes. The regulation therefore couples rigid procedural timelines for notifications and payments with substantial technical calculations and agency discretion for valuation and reduction mechanics.
Who it affects
The regulation identifies and materially affects several discrete groups. For each group the regulation creates obligations, choices or financial consequences.
Contributors and former contributors to the Police Superannuation Scheme. They are the primary persons affected across multiple divisions:
They can have benefits reduced where early release has been given (Div 1: s 9). If an early release benefit is paid, STC either offsets that amount against provided or preserved benefits (s 9(2)) or debits a debt account (s 9(3)-(5)); interest on debt accounts is at a rate determined by STC (s 9(5)(b)).
They may be the person required to provide tax file numbers or to be subject to no‑TFN reductions and debt accounts (ss 19-20). STC must request TFNs where none is held and provide annual statements (s 20).
They may be asked to consent in writing before STC reduces future benefits as a consequence of an early release (s 8).
They may request STC to adjust benefits to meet superannuation contributions surcharge liabilities (s 17). That request triggers STC’s ability to reduce benefits and to pay either the former contributor or the Commissioner of Taxation, subject to the surcharge deduction cap and prior payments (s 17).
They are subject to reductions arising from family-law payment splits (Part 4: ss 24-27). Contributor benefits will be reduced following a family law superannuation payment; STC will compute the required reduction using actuarial valuation and the formula in s 26.
Non-contributor spouses. Where a contributor’s interest is subject to a family law payment split, the regulation prescribes specific notice content and response windows:
STC must notify the non-contributor spouse of their estimated entitlement, calculation method, circumstances for payment/release, and the circumstances requiring transfer to a complying fund or RSA (s 24(4)(a)(i)-(iv)).
The non-contributor spouse must respond within the prescribed period (60 days per s 23) to provide payment instructions if they satisfy a payment-release circumstance or to nominate a complying superannuation fund or RSA for transfer (s 24(4)(b)).
If the non-contributor spouse does not respond within the prescribed period, the regulation directs that the amount be credited to the Aware Super Fund (s 24(4)(c)). That default affects portability and fund choice for non-contributor spouses who miss the response window.
Beneficiaries entitled to receive a superannuation allowance or gratuity (defined in s 34). STC may require production of documents relevant to entitlement determinations (s 34(1)). Failure to comply attracts a statutory maximum penalty of 5 penalty units (s 34(2)). Beneficiaries must also promptly notify STC in writing of any change of address (s 34(3)). The regulation’s notes also draw attention to Crimes Act 1900, Part 5A offences for knowingly providing false or misleading information in compliance with state law (s 33 note; s 34 note).
Former contributors facing Commonwealth superannuation contributions surcharge liability. Section 17 allows former contributors to ask STC to reduce benefits and to pay an amount equal to the lesser of the additional surcharge amount and the balance of the surcharge deduction cap. The Commissioner of Taxation is the Commonwealth recipient for surcharge liabilities; STC may pay the Commissioner on behalf of the former contributor at the former contributor’s request (s 17(1)(b), s 35(2)).
STC (the administrative agency identified throughout). Although the regulation does not define STC within its text, the Act context makes STC the decision maker for valuation, debt account creation and maintenance, requests for TFNs and the timing of many actions (for example, STC must determine interest rates for debt accounts, may obtain actuarial advice (s 9(6), s 17(2)), may determine which benefit components to reduce (s 9(7)), and may determine “reasonable periods” within which requests for payment of interest must be made for surcharge reimbursements (s 17(4), s 35(4))). STC therefore carries significant operational responsibilities and discretionary decision-making authority under this regulation.
The Commissioner of Taxation. The Commissioner is the recipient of surcharge liabilities and is referenced in surcharge adjustment and reimbursement regimes (ss 3 definition, 17(1)(b), 35).
Police Medical Board and police medical officers. The regulation governs who the Board may examine (former members with service ending before 1 April 1988, s 29), who may act on the Board when medical fitness is being considered (members must not act if they treated the former member, s 30), and the presence of a police medical officer at consultations if requested (s 32(2)).
In short: the regulation binds contributors, former contributors and their spouses, beneficiaries and STC. It creates operational choices , consent for early-release reductions (s 8), nomination of a complying fund for family-law payments (s 24(4)(b)), and requests for STC to pay surcharges (s 17) , and it establishes default consequences where choices are not taken (default credit to Aware Super Fund, debt-account balances treated in reductions, reduced benefits when early releases occur). The practical effect is that individuals must engage proactively with STC and comply with time-sensitive notice and nomination requirements to preserve choice.
Key duties and rights
This regulation allocates duties and rights principally to STC, contributors/former contributors, non-contributor spouses, beneficiaries and medical-board members. The following are the principal, source-grounded duties and rights.
Duties and powers of STC (recurring, operational and discretionary)
Reduction mechanics and actuarial advice. STC must carry out reductions where the Act and this regulation require them, create debt accounts and reduce payable benefits against debt accounts (s 9(3)-(4), s 19(2)-(3)). STC may obtain actuarial advice to determine reduced benefit amounts (s 9(6)) and may obtain advice for surcharge adjustments (s 17(2)). STC may also determine which benefit component(s) are to be reduced (s 9(7)) and determine the rate of interest to be applied to debt accounts (s 9(5)(b)).
Consent and notifications. Before releasing a benefit on severe financial hardship or compassionate grounds, STC must obtain written consent from the contributor or former contributor for the reduction of future benefits as a consequence of early release (s 8). STC must provide the written notices to contributors and non-contributor spouses where a payment split has occurred, within specified timeframes (s 24(1)-(2)) and must provide written confirmation after payment actions are taken (s 25(2)).
Debt-account maintenance and statements. STC must create and maintain debt accounts where no-TFN tax reductions apply (s 19(2)) and must give each person with a debt account an annual statement of the balance and request that TFNs be provided if not already on file (s 20).
Payment and reimbursement powers. STC may, at the request of a former contributor, adjust benefits to make payments to the Commissioner of Taxation or to the former contributor in respect of superannuation contributions surcharge, subject to caps and prior liabilities (s 17(1)). STC may reimburse or pay amounts where a former contributor has overpaid surcharge amounts to the Commissioner (s 35(1)-(3)). STC’s entitlement to pay interest charged on additional surcharge amounts is time-limited by STC’s determination of a “reasonable period” after notice receipt (s 17(4), s 35(4)).
Duties and obligations of contributors/former contributors and beneficiaries
Consent for reductions. Contributors/former contributors must give written consent to STC before STC reduces future benefits following an early release (s 8).
Provision of information and documents. A former member applying for an annual superannuation allowance must provide STC with particulars of the infirmity, injuries, later illness or injury, post‑service employment, names of treating medical practitioners, and all relevant medical certificates or reports (s 33(2)). Beneficiaries must produce documents STC considers necessary when STC is considering a payment to a beneficiary (s 34(1)). Beneficiaries must promptly notify STC in writing of any change of address (s 34(3)). Failure to produce documents when required is an offence with a maximum penalty of 5 penalty units (s 34(2)).
Responding to family law notices. Non-contributor spouses must respond to STC within 60 days after notice is given (s 23) in the circumstances prescribed under s 24(4)(b) , either by providing payment instructions if eligible for payment/release or nominating a complying superannuation fund or RSA to which the amount must be paid.
Requests for STC action in relation to surcharge. Former contributors can request STC to adjust benefits to meet surcharge liabilities and to pay the Commissioner (s 17(1)). Those requests trigger STC’s discretionary payment and reduction powers but are subject to caps and prior payments (s 17).
Rights of contributors/former contributors and non-contributor spouses
Right to consent and to require disclosure. Contributors/former contributors have the right to be given notice and, where required, to give consent before reductions are applied following early release (s 8). Non-contributor spouses have the right to be given detailed notice (s 24(4)(a)) and to nominate the receiving fund within the prescribed period (s 24(4)(b)).
Right to a specified timeframe for family-law payments. If a non-contributor spouse nominates a complying fund, STC must make a payment within 30 days after receiving the nomination (s 25(1)(b)). In other payment circumstances STC must pay “as soon as practicable” or within 30 days in specified scenarios (s 25(1)(a), (c)).
Right to have STC debit against benefits rather than recover by other means. Where an early release has occurred, STC is given the right to debit a debt account and reduce later benefits rather than pursue separate recovery mechanisms (s 9(3)-(5)).
Duties and limits on Police Medical Board members
Conflict rule and scope limitation. A Police Medical Board member may not act on a Board if the Board is considering a possible infirmity of a former member and the member has treated or seen that former member professionally in connection with that infirmity (s 30). The Board must only consider medical condition and medical fitness for duty when examining a former member (s 31). Examinations must be carried out by two members of the Board (s 32(1)).
Other key entitlements and limits
Limits on payment of surcharge-related interest. STC is not authorised to pay general interest charged in relation to an additional surcharge amount unless the request for payment is made within a period STC considers reasonable after the post-payment surcharge assessment notice is received (s 17(4), s 35(4)).
Caps on surcharge deduction amounts. Section 18 prescribes percentage caps (15%, 14.5%, 12.5%) of employer-financed benefit portions for accrual periods between 1996 and 2005. Section 17 implements the cap in practical payments: the reduction amount for surcharge relief is the lesser of the additional surcharge amount and the balance of the surcharge deduction cap less previously met liability.
Collectively, these duties and rights make STC the central operational actor: it makes valuation determinations, creates and maintains debt accounts, notifies parties, reduces benefits and, subject to contributor requests and caps, may pay surcharge liabilities on behalf of former contributors. Contributors, former contributors and spouses have time-sensitive responses and documentation obligations, and limited statutory protections in the form of notice requirements and rights to consent.
Penalties and enforcement
The regulation provides a limited, targeted enforcement framework. The regime is largely administrative: STC carries implementation and enforcement functions by making and applying reductions, keeping debt accounts, and requiring documents. Criminal sanctions are only referenced indirectly in notes where providing false or misleading information is an offence under the Crimes Act 1900. Concrete statutory penalties within the regulation are narrow.
Direct statutory penalties and enforcement mechanisms in the regulation
Failure to produce documents when required by STC. Section 34(2) creates a direct disciplinary/enforcement sanction: a beneficiary must not fail to produce a document required by STC under s 34(1). The maximum penalty is 5 penalty units (s 34(2)). That is the only penalty quantified within the regulation text.
Notices and administrative timeframes. The regulation imposes mandatory timeframes (for example, STC must give notices within 28 days in s 24(2); family-law payments must generally be paid within 30 days of nomination in s 25(1)(b); STC must provide post-payment confirmation notices within 28 days of taking payment actions in s 25(2)). Non-compliance with these statutory duties would be a breach of statutory duty by STC, but the regulation does not prescribe administrative fines or express remedial orders within its text. Instead, STC’s actions and delays are likely to be addressed by administrative review or by legal challenge under general administrative law principles where applicable; the regulation itself does not set out a distinct penalty schedule or enforcement agency for STC failures.
Criminal liability for false or misleading information. The regulation contains admonitory notes that reference Crimes Act 1900, Part 5A: knowingly providing false or misleading information or omitting a matter in purported compliance with a law of the State is an offence (s 33 note; s 34 note). Those references indicate potential criminal exposure for materially false statements or fraudulent documentation supplied under this regime. The regulation does not replicate or restate the detailed offences or penalties; it refers users to the Crimes Act.
Administrative enforcement mechanisms and non‑monetary sanctions
Benefit reduction and debt-account mechanism. Much of the regulation’s enforcement is internal and automatic: where early release benefits have been paid, STC is empowered to offset those amounts against preserved/provided benefits or create a debt account and reduce future benefits by amounts debited (s 9). That internal offset mechanism is a practical enforcement measure: it ensures recoupment of early-release payments without separate civil proceedings.
Creation of debt accounts for no-TFN tax and early release. STC must create and maintain debt accounts (ss 9(3); 19(2)). The existence of a debt account imposes future financial consequences because STC will reduce benefits at the time payment is due by the amount debited (ss 9(3)-(5); s 19(3)).
Limits and discretionary time-bounding of interest payments. For surcharge reimbursements and payments to the Commissioner, the regulation authorises STC to pay only principal amounts unless a timely request for interest is made; STC determines what it regards as a “reasonable” period in which the request must be made (s 17(4); s 35(4)). That gives STC a practical enforcement advantage: interest on surcharge liabilities will not be met unless the former contributor acts promptly.
Potential avenues for challenge (implicit enforcement risks)
Discretionary determinations by STC may attract review. The regulation repeatedly permits STC to obtain actuarial advice, determine interest rates and decide which benefit components to reduce (s 9(6)-(7); s 17(2); s 13(1)(c)(iii) and s 14 L where STC may determine a lesser L having regard to actuarial valuation). Those discretionary decisions may be susceptible to procedural fairness or jurisdictional error challenges if STC fails to disclose rationale, applies incorrect legal tests, or acts beyond the statutory discretions. The regulation itself does not set out internal review or appeal mechanisms; remedies would be sought under administrative law or the Act.
Family law interaction and timing disputes. The regulation prescribes notice and response windows for non-contributor spouses (ss 23-24). Failure by STC to give required notice within the prescribed 28‑day timeframe, or disputes about the calculation and valuation method for the entitlement, could produce challenges. The regulation ties valuation methods to Commonwealth instruments (s 22), which may constrain STC valuations but also raise cross-jurisdictional interpretive issues.
Enforcement burden and limits
The enforcement design is administrative, not criminal. The only express monetary/penal sanction in the regulation is the 5 penalty unit maximum for failing to produce documents when required (s 34(2)). For other compliance failures or disputes , for example, contesting reduction or surcharge calculations , the regulatory mechanism is the internal adjustment of benefits and, ultimately, external review or litigation under general law where available. In practice the principal enforcement lever is STC’s ability to withhold or reduce future benefits through internal debt-accounting mechanisms.
Overall, the regulation relies on administrative mechanisms , offsets, debt accounts, notices and time-limited windows , together with one small statutory penalty and external criminal provisions for false statements, to secure compliance. It grants STC wide operational discretion, and those discretionary choices are the principal locus where enforcement and contestation will occur.
How it interacts with other laws
The regulation deliberately cross-references and integrates Commonwealth instruments, the Act, and other State Acts. The text itself identifies several cross-jurisdictional touchpoints and prescribes when and how external law applies.
Interaction with the Police Regulation (Superannuation) Act 1906 (the Act)
This regulation is an instrument under the Act and implements many of the Act’s detailed procedural and arithmetic rules. Numerous provisions are expressed to operate “for the Act, section X” (see, for example, ss 4, 5, 6, 7, 11, 16, 19, 22, 26 and elsewhere). The regulation does not replace the Act; rather, it prescribes methods and particulars required for the Act’s operation. For example:
The list of benefits subject to reduction and the methods for reduction are specified in this regulation for the Act’s sections on reduction of benefits (ss 7, 11, 16).
The family-law payment split processes implemented in ss 22-27 operate to give effect to the Act’s Part 4A (see s 22(1)).
Interaction with Commonwealth family law instruments
The regulation explicitly relies on the Commonwealth Family Law (Superannuation) Regulations 2025 and associated Approvals for valuation methods and approvable calculation methods. Section 22 requires that valuation of a contributor’s superannuation interest for Act Part 4A and the family law superannuation legislation follow:
the approved valuation method for non-deferred benefits, which is the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025 (Schedule 2 Part 5 for Police Superannuation Scheme interests); and
for deferred benefits, the valuation method set out in the Commonwealth Family Law (Superannuation) Regulations 2025, Schedule 3, Part 8 (s 22(2)-(3)).
This cross-reference ensures that family-law payment-split valuation is harmonised with Commonwealth-approved valuation approaches. STC’s valuation obligations are therefore contingent on Commonwealth instruments.
Interaction with Commonwealth taxation law and the Commissioner of Taxation
The regulation references the Commonwealth Superannuation Contributions Tax (Assessment and Collection) Act 1997 when defining “post payment surcharge assessment notice” (s 3). The Commissioner of Taxation is defined (s 3) and is the recipient of surcharge liabilities where STC pays on behalf of a former contributor (s 17(1)(b)).
The aggregate-rate-of-tax term in s 14 ties the rate L to “the rate of tax payable on employer contributions set out in the relevant Commonwealth taxation law or a lesser rate determined by STC, having regard to the most recent actuarial valuation of the scheme” (s 14(1)). Thus the regulation anchors calculations to Commonwealth tax rules but gives STC capacity to adopt a lesser rate on actuarial grounds.
Interaction with State Authorities Superannuation Act 1987
Section 13(2) prescribes the interest rate to be applied for certain historical interest calculations: for periods on or after 1 July 1990, the prescribed rate is “the rate fixed from time to time under the State Authorities Superannuation Act 1987, section 16.” That ties retrospective interest computations to a state statutory reference rate.
Interaction with the Crimes Act 1900 and Subordinate Legislation Act 1989
The regulation’s notes reference the Crimes Act 1900, Part 5A in relation to false or misleading information supplied in purported compliance with state law (s 33 note; s 34 note). Section 2 notes the repeal of the 2020 Regulation by operation of the Subordinate Legislation Act 1989, s 10(2), and the commencement timing.
Interaction with other State superannuation statutes
The regulation’s definitions and Part 4 definitions cross-reference the Police Association Employees (Superannuation) Act 1969 (s 21) for the meaning of a deferred benefit where applicable to police association scheme members.
Interaction with Commonwealth family law fee provisions
The note to s 25 points readers to Family Law (Superannuation) Regulations 2025, regulation 98, for the fees STC may charge in relation to certain actions taken under s 25. This indicates that STC’s capacity to levy charges for family law-related actions is governed by Commonwealth regulation.
Net effect and practical cross-border dependencies
The regulation tightly integrates state superannuation administration with federal law in two principal ways: (1) valuation and procedural processes for family law payment splits use Commonwealth family law regulations and Approvals (s 22); (2) tax‑driven reductions and surcharge interactions reference Commonwealth tax law and the Commissioner of Taxation (s 3 definition, s 17). In both contexts, STC remains the operational actor, but the substantive valuation and tax rates derive from Commonwealth instruments or from Act-linked state statutes. Practitioners, administrators and affected persons must therefore consider federal family law rules, Commonwealth tax rules and State superannuation law together when advising or acting.
Amendment history
The regulation itself is framed as a 2025 instrument that replaces the 2020 regulation. The instrument includes specific statements about commencement and repeal which constitute its immediate amendment history and transitional consequences within the provided text.
Commencement and repeal of prior regulation. Section 2 states that the Police Superannuation Regulation 2025 commences on 1 September 2025. The section contains a note that the regulation replaces the Police Superannuation Regulation 2020, which is repealed on 1 September 2025 by the Subordinate Legislation Act 1989, s 10(2). That is the principal replacement event recorded in the document.
Transitional saving. Section 37 contains a savings provision: any act, matter or thing that, immediately before the repeal of the 2020 regulation, had effect under that regulation continues to have effect under the 2025 regulation. This preserves continuity of operative acts taken under the predecessor instrument and avoids gaps in administration that might otherwise arise from the repeal.
Temporal prescriptions and historic references preserved. The regulation contains several provisions that refer to past dates or historical calculation anchors. Examples include:
Section 4(2) prescribes 23 October 1992 for a purpose under the Act, s 1A(2).
Section 13(1)(c)(i) prescribes that interest on member-deduction amounts be compounded on 30 June in each year for the period beginning on the later of 23 November 1984 or the date on which the member last became liable to make contributions; section 13(2) prescribes an interest rate of 4.5% per year between 23 November 1984 and 30 June 1990, and thereafter the rate fixed under the State Authorities Superannuation Act 1987, s 16. Those prescriptions preserve particular arithmetic approaches to long‑dated entitlements and reflect a continuity of methodology across time.
Transitional provision relating to historical Commissioner of Police decisions. Section 36 allows STC, in determining whether to grant a gratuity under the Act, s 12D, to rely on a decision of the Commissioner of Police made under that section before 8 July 2005, whether or not that prior decision was made at STC’s request. That provision preserves the effect of older Commissioner decisions in current STC determinations, as a transitional measure.
No other amendment or revision history is recorded within the text provided. The regulation does not include a schedule of prior amendments, versions, or textual changes beyond the explicit replacement and saving clauses listed above. Any further historical changes or prior amendments to the Act or to Commonwealth instruments referenced (Family Law (Superannuation) Regulations or Approvals, State Authorities Superannuation Act) are not included in this regulation text and therefore are outside the immediate amendment history recorded here.
Litigation history
The regulation text provided contains no record of any litigation, court decisions, or judicial interpretation relating to its provisions. There are no case citations, no references to judicial authority interpreting the regulation, and no explicit administrative-review decisions set out in the text.
However, the structure of the regulation indicates areas where disputes or litigation could plausibly arise, given that the instrument:
Grants STC broad discretionary powers to determine actuarial bases, interest rates, and the components of a benefit to reduce (see s 9(6)-(7), s 17(2), s 13(1)(c)(iii) and s 14 L which allows STC to determine a lesser L having regard to actuarial valuation). Those discretionary decisions may be the subject of administrative law challenges if claimants allege errors of law, procedural unfairness or failure to take into account mandatory considerations. The regulation itself does not set out review processes; remedies would fall to judicial review in appropriate State courts or tribunals under general administrative law principles.
Embeds complex mathematical and actuarial calculations for benefit reductions (Div 2: ss 12-14). Formulae that calculate reductions require determinations of employer-financed portions, retrospective deduction and interest calculations, and aggregation of tax rates across service periods. Disputes may arise over the proper input values, the calculation of A and B in s 12-13, or the precise timing and measurement of “days of continuous service” in s 14. The regulation provides the variables and references to methods but leaves key determinations and actuarial advice to STC.
Interacts with Commonwealth family law instruments by prescribing valuation methods based on Commonwealth Approvals and Regulations (s 22). Discrepancies between STC’s valuation, the Commonwealth valuers’ Approvals and family law orders could produce disputes, especially in cases where a payment split interacts with deferred-benefit valuation rules (s 22(2)) or where STC’s default to Aware Super Fund (s 24(4)(c)) becomes contested.
Contains time-limited entitlement to payment of surcharge interest where STC must decide whether a request is made within a “reasonable period” (s 17(4), s 35(4)). Disagreement over whether a request was made within STC’s reasonable period could result in litigation concerning STC’s exercise of discretion.
Despite these potential sources of dispute, the regulation text does not itself record any prior litigation. Where litigation has occurred in practice, it is not reflected in the provided text. Any researcher or practitioner wanting to locate litigation would need to search case law and administrative tribunal decisions outside this regulation text.
Gotchas
This regulation contains multiple procedural and technical traps that can materially affect rights and outcomes. The following are concrete “gotchas” drawn directly from the text.
Written consent is required before reducing future benefits on early release. Section 8 unambiguously requires STC to obtain written consent of the contributor or former contributor before releasing a benefit on the ground of severe financial hardship or compassionate grounds if that release will reduce future benefits. If a claimant expects early release without income‑stream consequences, failing to provide proper written consent or to understand the consent content may cause unexpected reductions. Practitioners must check that consent is both given and documented.
Early release is recouped by offset or via a debt account with STC-determined interest. Section 9 gives STC two primary recoupment mechanisms: direct reduction of provided or preserved benefits on and from the date of release (s 9(2)), or creation of a debt account debited by the amount and interest such that later payable benefits are reduced by the account balance (s 9(3)-(5)). The debt account’s interest rate is “determined by STC” (s 9(5)(b)), a discretionary element that can materially affect the future reduction amount. The absence of a fixed statutory rate for that interest is a potential exposure for contributors.
STC chooses which benefit components to reduce. Section 9(7) allows STC to determine which component(s) of a benefit are to be reduced. If a member’s benefit has multiple components (pension vs gratuity, preserved balances, allowances), STC’s choice of which component to reduce can change cashflow and taxation profiles. Members do not have a statutory right to choose which component is reduced.
Time-limited entitlement to interest on surcharge payments. Sections 17(4) and 35(4) say STC is not authorised to pay general interest charged for an additional surcharge amount unless the request is made within a period after the notice is received that STC considers reasonable. That language places a de facto time bar, but it vests the reasonableness judgment in STC. Absent an express objective standard, claimants risk losing interest reimbursement if they fail to act promptly.
The surcharge deduction cap is applied by STC subject to prior payments and previously met liability. Section 17(1)(a) ties any reduction (and thus payment to the Commissioner or former contributor) to the lesser of the additional surcharge amount and the remaining surcharge deduction cap less any previously met liability. Practically, this means that a former contributor who has previously met part of their liability or who faces multiple post-payment assessments may not be able to have STC fully meet new surcharge amounts; STC calculates previously met surcharge liability (s 17(5)).
Formulaic reductions require complex historical inputs. Division 2 (ss 12-14) uses variables A, B, M and Q and asks STC to calculate employer-financed portions by subtracting member deductions, certain repayments and compounding interest dating back to 23 November 1984 (s 13). That historical computation depends on accurate records of contributions and may require actuarial advice (s 9(6)). Mistakes in historical data or misapplied interest rates (including the prescribed 4.5% p.a. for 1984-1990, s 13(2)) will materially affect reduction outcomes.
Defaulting non-contributor spouses lose choice. If a non-contributor spouse does not respond within the 60-day prescribed period to STC’s notice (ss 23-24), the entitlement will be credited to the Aware Super Fund (s 24(4)(c)). This is a concrete loss of fund choice for the non-contributor spouse and can result in transfers to a fund they did not choose. The response window is short relative to the implications of fund selection.
No-TFN debt accounts and annual statements. STC must create a debt account if a benefit is liable to be reduced because of no-TFN tax (s 19(2)). STC must issue annual statements and request TFNs (s 20). Failure to provide TFN will result in reduced benefits and the running of a debt account; contributors should provide TFNs promptly to avoid automatic reductions.
Beneficiaries face a statutory penalty for document non-production. Section 34(2) prescribes a maximum penalty of 5 penalty units for failing to produce a document required by STC under s 34(1). While quantitatively modest, the penalty is statutory and sits alongside the risk that benefit payments will be delayed or withheld pending production.
Medical-board rules only apply to very old cohorts. Part 5 applies only to former members whose service ended before 1 April 1988 (s 29). Modern applicants cannot rely on Part 5 processes; its restrictions on who can act and how examinations are performed are limited to a narrow historical cohort.
STC’s discretion on interest and actuarial assumptions. The regulation repeatedly permits STC to obtain actuarial advice and determine interest or tax rates (ss 9(6), 13(1)(c)(iii), 14(1)). These operational choices materially affect monetary outcomes. Parties should expect STC to document assumptions, but the regulation does not prescribe detailed transparency obligations about actuarial bases beyond the general power to obtain advice.
Family law fees may be charged under Commonwealth regulation. The note to s 25 refers to Commonwealth regulation 98 for fees STC may charge in relation to family law actions. Practitioners should check the Family Law (Superannuation) Regulations 2025 to anticipate costs charged by STC in relation to splits, transfers and rollovers.
Given these points, affected persons should treat STC notices and requests as time-critical, retain contribution and medical records going back decades, guard against missed family law nomination windows, and obtain early advice where surcharge or actuarial calculations are likely to be material.
How to comply
Compliance under this regulation is principally administrative: it requires timely responses, accurate documentation, prompt nomination and provision of TFNs, and awareness of STC’s discretionary powers. Concrete steps, with the relevant sections cited, follow.
Provide and keep accurate contact details with STC (s 34(3))
Duty: Beneficiaries must promptly notify STC, in writing, of any change of address (s 34(3)).
Practical step: Maintain an up-to-date contact record on STC systems and confirm receipt of any acknowledgements. Ensure that any statutory notices are deliverable by registered post and obtained documents are retained.
Produce documents when requested and retain originals (s 34(1)-(2))
Duty: STC may require production of documents necessary to consider payment to a beneficiary; failure to produce is an offence with a maximum penalty of 5 penalty units (s 34(1)-(2)).
Practical step: Keep originals or certified copies of contribution records, employment records, medical certificates, and proof of identity. Where STC asks for documents, comply within the specified time and obtain written confirmation.
Provide tax file number promptly and respond to annual statements (ss 19-20)
Duty: STC must request TFNs where absent and create debt accounts for no-TFN tax reductions (s 19(2); s 20(1)(b)). STC must send annual statements to those with debt accounts (s 20(1)(a)).
Practical step: Provide TFN details promptly to STC in response to a request. Review annual debt-account statements carefully and raise queries immediately.
If a payment split occurs, act within the prescribed period (ss 23-25)
Duty: STC must notify the contributor and non-contributor spouse of family law entitlements and calculation details within time-limited windows (s 24(1)-(4)). The prescribed period for a non-contributor spouse to respond is 60 days after notice (s 23). STC must make payments within 30 days of nomination (s 25(1)(b)) or within other specified timeframes (s 25(1)(a), (c)). If no nomination is made, the amount will be credited to the Aware Super Fund (s 24(4)(c)).
Practical step: Non-contributor spouses must nominate a complying fund or provide payment details within 60 days. If representing a non-contributor spouse, prepare early to evaluate whether the spouse meets payment/release circumstances and identify the receiving fund. If no nomination is desired, understand the implication of a default to Aware Super Fund.
Consent before early release reductions and understand consequences (ss 8-10)
Duty: STC must obtain the written consent of the contributor or former contributor to the reduction of future benefits before releasing a benefit on severe financial hardship or compassionate grounds (s 8). STC may reduce provided or preserved benefits immediately or create a debt account to be debited against later benefits (s 9). STC may commute part of a superannuation allowance with the payee’s consent to raise cash to meet the reduction (s 10(2)).
Practical step: Where applying for early release, check the consent document carefully and seek independent advice about the long-term impact on benefits. If you are a member, consider whether to consent, and if so, ensure the written consent records the precise reductions and the basis.
If facing a superannuation contributions surcharge, consider requesting STC adjustment (s 17) , but act quickly on interest
Duty: A former contributor may request STC to adjust benefits by reducing them and to pay an amount equivalent to the surcharge (s 17(1)). STC may pay the former contributor or the Commissioner of Taxation; STC will consider previously met surcharge liability (s 17(1)-(3)). STC is not authorised to pay general interest unless the request for payment is made within a period after notice that STC considers reasonable (s 17(4)).
Practical step: If you receive a post-payment surcharge assessment notice, immediately notify and seek to engage STC to request adjustment if you want STC to pay or reimburse. Act promptly to preserve entitlement to interest reimbursement; ask STC to state, in writing, what it considers a “reasonable period” for the particular notice.
Keep historical contribution and repayment records for reduction calculations (ss 12-14, 13(1))
Duty: The portion attributable to employer contributions (A) is calculated by reference to the value of the benefit (B) less the sum of total amounts deducted under the Act from salary, amounts repaid to the Fund, and interest compounded on historical dates (s 13(1)). Interest is compounded from 23 November 1984 with a two-stage prescribed interest regime (s 13(1)(c)(i)-(iii), s 13(2)).
Practical step: Obtain and preserve detailed historical pay and contribution records. If you are advising a client with long service, accumulate documentation that supports the calculation of member deductions and repayments. Anticipate actuarial valuations where historical complexities exist.
Duty: STC may obtain actuarial advice to determine reduced benefits (s 9(6)) and when adjusting benefits for surcharge purposes (s 17(2)). Family law valuations must follow Commonwealth-approved methods and particular Approval schedules (s 22).
Practical step: If valuations or actuarial assumptions materially affect a client’s position, request STC’s actuarial basis in writing and consider obtaining independent actuarial advice to review inputs and outputs. For family law splits, coordinate with family law specialists to ensure the valuation approach aligns with Commonwealth Approvals.
For medical-allowance claims in the small cohort covered by Part 5, comply with application content and examination processes (s 33)
Duty: Former members (service ended before 1 April 1988) applying for an annual superannuation allowance must submit particulars and medical reports and must submit to examinations by police medical officers, the Police Medical Board or other practitioners as requested (s 33(1)-(3)). Board members who previously treated the former member must not act (s 30).
Practical step: Prepare comprehensive medical documentation, lists of treating practitioners and medical certificates. If requested to submit to a Board examination, expect an examination by two Board members and the potential presence of a police medical officer; prepare for potential recusal issues where treating practitioners are on the Board.
Ensure document accuracy to avoid criminal exposure for false statements (s 33 note; s 34 note)
Duty: The regulation’s notes refer to the Crimes Act 1900, Part 5A for false or misleading information offences. This creates criminal exposure for knowingly false statements.
Practical step: Verify the accuracy of any material provided to STC and obtain legal advice if there is doubt about how best to disclose sensitive medical or financial information without exaggeration or misstatement.
If STC asks for a nomination for a family law payment, nominate promptly and match any fund’s rollover requirements (s 24(4)(b))
Duty: Non-contributor spouse must nominate a complying superannuation fund or RSA within the prescribed 60 days, failing which the payment defaults to Aware Super Fund (s 24(4)(b)-(c)).
Practical step: Before nomination, confirm the receiving fund’s account details, rollover acceptance rules and any identification required. Provide STC with completed nomination documentation within the 60-day window.
If disputing a STC decision, preserve procedural fairness steps and seek administrative review early
Duty and practical step: The regulation vests STC with discretion in many areas (actuarial bases, interest rates, reasonable periods). Where STC’s exercise of discretion appears unreasoned, arbitrary or procedurally unfair, gather contemporaneous documentation of STC’s communications and consider seeking legal advice about administrative review or judicial review remedies. Time limits for judicial review may be short.
Following these steps aligns action to the regulation’s explicit duties and deadlines (refer to ss 8-10, 12-14, 17-20, 22-27, 33-35) and reduces exposure to administrative default consequences, loss of fund choice, or unexpected financial outcomes.
(b) the general interest charged for the additional surcharge amount payable under the notice,
(c) the interest payable on the surcharge debt account, within the meaning of the Act, section 14AA, kept in relation to the former contributor.
Note—
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
4 Additional members of police force to whom Act applies—the Act, s 1A
4 Additional members of police force to whom Act applies—the Act, s 1A
4 Additional members of police force to whom Act applies—the Act, s 1A
(1) For the Act, section 1A(1)(c), the class of members consisting of the following persons is prescribed—
(a) Robert Allan Shankleton—Registered No 24929,
(b) Shaun Patrick Moloney—Registered No 25077,
(c) Jennifer Louise Cullane—Registered No 25777.
(2) For the Act, section 1A(2), 23 October 1992 is prescribed.
Part 2 Salary and leave
Part 2 Salary and leave
Part 2 Salary and leave
5 Salary of office for members of NSW Police Force other than executive officers—the Act, s 1
5 Salary of office for members of NSW Police Force other than executive officers—the Act, s 1
5 Salary of office for members of NSW Police Force other than executive officers—the Act, s 1
(1) For the Act, section 1(2), definition of salary of office, paragraph (a), salary of office includes remuneration received as a bonus for a member of the police force attaining any of the following qualifications—
(a) Associate Diploma in Justice Administration,
(b) Diploma in Criminology,
(c) Bachelor of Laws.
(2) For the Act, section 1(2), definition of salary of office, paragraph (a)(vii), remuneration received as any of the following is exempt—
(a) a soiled clothing allowance,
(b) a shift allowance,
(c) a stocking allowance.
6 Initial period of leave—the Act, s 5A
6 Initial period of leave—the Act, s 5A
6 Initial period of leave—the Act, s 5A
For the Act, section 5A(1), definition of initial period, the following periods are prescribed—
(a) for a period of leave that is less than 3 months—that period of leave,
(b) for a period of leave that is 3 months or more—3 months.
Part 3 Reduction of benefits
Part 3 Reduction of benefits
Part 3 Reduction of benefits
Division 1 Reduction relating to early release of benefits—the Act, s 12H
Division 1 Reduction relating to early release of benefits—the Act, s 12H
Division 1 Reduction relating to early release of benefits—the Act, s 12H
7 Application of division
7 Application of division
7 Application of division
The following benefits may be reduced under this division—
(a) the benefits provided under the Act, sections 5B, 7, 7AA, 8A, 9B, 9C, 10, 13, 13A, 14 and 14J,
(b) the benefits provided under the Act, section 12, except the benefit payable under the Act, section 12(1) if the prescribed rate for that benefit is set out in the Act, section 12(1AA)(b)(ii).
8 Consent to benefit reduction
8 Consent to benefit reduction
8 Consent to benefit reduction
Before releasing a benefit on the ground of severe financial hardship or on compassionate grounds, STC must obtain the written consent of the contributor or former contributor to the reduction of future benefits as a consequence of the early release.
9 Reduction of benefits
9 Reduction of benefits
9 Reduction of benefits
(1) This section applies to the reduction of benefits payable to, or in relation to, a contributor or former contributor to whom a benefit (an early release benefit) has been released under the Act, section 12F or 12G.
(2) If an early release benefit is released to a former contributor who has provided for a benefit under the Act, section 9B, or had a benefit preserved under the Act, section 9C, STC must—
(a) on and from the date of release—
(i) calculate the amount of the benefit provided for or preserved, and
(ii) reduce the amount of the benefit provided for or preserved by the amount of the early release benefit, and
(b) when the benefit provided for or preserved is payable—reduce the amount of the benefit by the amount of the early release benefit.
(3) If subsection (2) does not apply, STC must—
(a) create a debt account in the Fund in relation to the contributor or former contributor, and
(b) when a benefit is payable—reduce the benefit that is payable by the amount debited to the debt account at the time the benefit is payable.
(4) Despite subsection (3), if a benefit is provided for or preserved under the Act, section 9B or 9C after the release of an early release benefit and before a benefit is otherwise payable to the contributor, STC must—
(a) on and from the date the benefit is provided for or preserved—
(i) calculate the amount of the benefit provided for or preserved, and
(ii) reduce the amount of the benefit provided for or preserved by the amount debited to the debt account at the time the benefit is provided for or preserved, and
(b) when the benefit provided for or preserved is payable—reduce the amount of the benefit by the amount debited to the debt account at the time the benefit was provided for or preserved.
(5) For subsections (3) and (4), the amount debited to the debt account must be the sum of—
(a) the amount of all early release benefits released to the contributor, and
(b) interest on the amount at a rate determined by STC.
(6) STC may obtain actuarial advice for the purposes of determining the amount of a reduced benefit.
(7) For subsections (2) and (4), STC may determine which component or components of a benefit are to be reduced.
(8) This section does not apply to reduce an early release benefit payable under the Act, section 12F or 12G.
10 Commutation of superannuation allowances
10 Commutation of superannuation allowances
10 Commutation of superannuation allowances
(1) This section applies if a benefit reduced under this division may be taken in the form of a superannuation allowance.
(2) STC may, with the consent of the person to whom the allowance is payable, commute part of the unreduced allowance to a lump sum for the purposes of the payment to STC of the amount of the reduction.
(3) Commutation of part of the superannuation allowance—
(a) does not affect another right that the person has to commute the allowance under the Act, and
(b) must not be taken into account for the purposes of determining whether, and to what extent, any other right may be exercised, and
(c) must be done on a basis determined by STC.
(4) STC may obtain actuarial advice for the purpose of determining the basis on which part of a superannuation allowance is to be commuted under this section.
Division 2 Reductions relating to income tax—the Act, s 14AA
Division 2 Reductions relating to income tax—the Act, s 14AA
Division 2 Reductions relating to income tax—the Act, s 14AA
11 Prescribed benefits
11 Prescribed benefits
11 Prescribed benefits
For the Act, section 14AA(2)(a), the following benefits are prescribed—
(a) the benefits provided under the Act, sections 5B, 7, 7AA, 8A, 9B, 10, 13A, 14 and 14J,
(b) the benefits provided under the Act, section 12, except—
(i) the benefit payable under the Act, section 12(1) if the prescribed rate for that benefit is set out in the Act, section 12(1AA)(b)(ii), and
(ii) the benefit payable as a result of an election under the Act, section 12(1A) to take a gratuity equivalent to the gratuity prescribed by the Act, section 13.
12 Reduction in benefits
12 Reduction in benefits
12 Reduction in benefits
(1) For the Act, section 14AA(2)(b), the following method of calculating a reduction is prescribed—
where—
R is the amount of the reduction.
M is the amount of the benefit being reduced.
A is the portion of the benefit attributable to employer contributions, which is calculated in accordance with section 13.
B is the value of the benefit, calculated as—
(a) for a gratuity benefit, a preserved benefit or a lump sum benefit for which an election has been made or is deemed to have been made under the Act, section 14J that must be paid to or in relation to the member or former member of the police force—the amount of that benefit, or
(b) for an allowance that must be paid to or in relation to the member or former member—the amount calculated by STC as the capitalised value of the benefits payable to or in relation to the member or former member.
Q is the sum of the number of terms determined in accordance with section 14 to reflect the number of times the rate of tax, being the tax referred to in the Act, section 14AA(1), has changed.
(2) No benefit reduction applies where the value of A is less than 0.
13 Portion attributable to employer contributions
13 Portion attributable to employer contributions
13 Portion attributable to employer contributions
(1) For section 12, A is calculated by subtracting the sum of the following amounts from the amount represented by B—
(a) the total amount deducted under the Act from the salary of office of the member or former member of the police force, from the date when the member or former member last became a member of the police force to the date on which the member or former member stopped being a member of the police force or died,
(b) the amount repaid by the member or former member to the Fund under the Act, section 17(3),
(c) interest—
(i) compounded on 30 June in each year for the period beginning on the later of the following—
(A) 23 November 1984,
(B) the day on which the member or former member last became liable to make contributions under the Act, and
(ii) compounded on the date on which the member or former member stopped being a member of the police force or died, and
(iii) calculated at the prescribed rate provided for by subsection (2) on the amount ascertained by adding the amounts referred to in paragraphs (a) and (b).
(2) For subsection (1)(c)(iii), the prescribed rate is—
(a) for the period beginning on 23 November 1984 and ending on 30 June 1990—4.5% per year, or
(b) for the period beginning on or after 1 July 1990—the rate fixed from time to time under the State Authorities Superannuation Act 1987, section 16.
(3) Despite subsections (1) and (2), for section 12, is taken to be 1 if the benefit to be reduced is an increase in an allowance under the Act, section 10 or 12.
14 Aggregate rate of tax
14 Aggregate rate of tax
14 Aggregate rate of tax
(1) For section 12, Q is—
where—
C is the number of days of continuous service that the person had as a member of the police force in each period during which the rate of tax payable on employer contributions, as referred to in the Act, section 14AA, is L.
D is the number of days of continuous service that the person had as a member of the police force during the period beginning with the date when the person last became liable to make contributions under the Act and ending—
(a) for benefits under the Act, section 10 or 12—with the later of the date the person stopped being a member of the Fund and the date on which the person would have been eligible to retire under the Act, section 7 if the person’s employment as a member of the police force had continued to that date, or
(b) for all other cases—when the person stopped being a member of the Fund.
L is the rate of tax payable on employer contributions set out in the relevant Commonwealth taxation law or a lesser rate determined by STC, having regard to the most recent actuarial valuation of the scheme.
(2) In this section—
person means the person to or in relation to whom the benefit is payable.
Note—
The benefit that emerges on the death of a former member of the police force under the Act, section 11 or 12(1AA)(b)(ii) is not to be reduced because it is calculated as a proportion of the benefit payable to the former member and that benefit will already have been reduced in accordance with the Act, section 14AA.
15 Reduction in benefits relating to past benefits
15 Reduction in benefits relating to past benefits
15 Reduction in benefits relating to past benefits
(1) This section applies to a benefit payable on or after 1 July 2000 that is—
(a) a superannuation allowance under a provision referred to in section 7 that was first payable on or after 1 July 1988 and before 1 July 1997, or
(b) a superannuation
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