26APower of STC to reduce benefits to offset certain tax liabilities of a fund maintained under section 9 (1)

26A Power of STC to reduce benefits to offset certain tax liabilities of a fund maintained under section 9 (1)

26A Power of STC to reduce benefits to offset certain tax liabilities of a fund maintained under section 9 (1)

(1) Whenever—

(a) a right to a benefit accrues to or in respect of an employee or former employee, and

(b) STC has paid or is liable to pay income tax under a Commonwealth taxation law in respect of employers’ contributions to a fund maintained under section 9 (1), and

(c) a portion of that tax is referable to that benefit,

STC must, subject to subsection (2)—

(d) calculate the amount necessary to offset STC’s liability to pay tax so far as it is referable to that benefit, and

(e) accordingly make a determination reducing the benefit by the amount so calculated.

(2) Subsection (1) does not authorise the reduction of a benefit, unless—

(a) the benefit is of a kind prescribed by the regulations for the purpose of this section, and

(b) the method of calculating the reduction is so prescribed, and

(c) the reduction is calculated according to that method.

(3) A benefit may also be reduced by STC in accordance with any of the following provisions (which allow STC to apply the benefit toward payment of a superannuation contributions surcharge)—

(a) section 14AA of the Police Regulation (Superannuation) Act 1906,

(b) section 45A of the State Authorities Superannuation Act 1987,

(c) section 61RA of the Superannuation Act 1916.

s 26A: Ins 1988 No 135, Sch 1 (4). Am 1996 No 39, Sch 4; 2000 No 100, Sch 4 [5].