26ABPower of STC to reduce benefits for no-TFN tax

26AB Power of STC to reduce benefits for no-TFN tax

26AB Power of STC to reduce benefits for no-TFN tax

(1) This section applies to a benefit if—

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

(b) STC has paid or is liable to pay no-TFN tax in respect of employer contributions to the Fund, and

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

(d) the benefit is of a kind prescribed by the regulations for the purposes of this section.

(2) The amount of the benefit is reduced by the amount necessary to offset STC’s liability to pay no-TFN tax so far as it is referable to that benefit.

(3) The amount of the reduced benefit is to be determined by STC after obtaining actuarial advice.

(4) The regulations may provide for the establishment of debt accounts in respect of employees or former employees for the purposes of this section.

(5) In this section—

no-TFN tax means an amount equal to the difference between the amount of—

(a) income tax payable by STC under the Income Tax Assessment Act 1997 of the Commonwealth on employer contributions to the Fund for an employee if there is a failure by the employee to provide information about his or her tax file number to STC, and

(b) income tax that would be so payable if the information about the tax file number was provided.

Note.

An employee or former employee may also elect to have a benefit under this Act reduced, instead of having a benefit in the Police Superannuation Scheme, the State Authorities Superannuation Scheme or the State Superannuation Scheme reduced.

s 26AB: Ins 2010 No 60, Sch 2 [3].