This regulation sets the rules for reducing and managing State Authorities Superannuation Scheme benefits to meet tax, surcharge and no‑TFN obligations, early release and family‑law payment splits, and death/disability arrangements for certain emergency services. It prescribes formulas, caps, notification and debt‑account processes, actuarial input and salary‑loading calculations. It affects contributors and former contributors, their spouses, employers, STC (the scheme administrator) and the Commissioner of Taxation by allocating who pays, when benefits are adjusted and what administrative steps STC must take.
This regulation (State Authorities Superannuation Regulation 2025) replaces the 2020 regulation and comes into force on 1 September 2025 (ss 1-2). Its mechanical effect is to prescribe detailed operational rules and formulas that give effect to specific provisions of the State Authorities Superannuation Act 1987 (the Act). The regulation:
Prescribes which Act benefits may be reduced to meet tax liabilities and specifies the formulae for calculating those reductions (Part 2, Div 1; ss 5-14). The regulation sets distinct formulae for reductions under different Act provisions (ss 6-11), prescribes the maximum surcharge deduction amounts by accrual period (s 14), and provides a mechanism for further reductions at a former contributor’s request (s 13).
Implements debt-accounting and notice/statement requirements where benefits are reduced because of no Tax File Number tax, no‑TFN tax, and for early release of benefits (Divs 2 and 3: ss 15-19). STC must create debt accounts, provide annual statements, and obtain written consent before early releases that will reduce future benefits (ss 15-16, 19).
Sets family law operational requirements: valuation method reference, notice content and timing where a superannuation interest is subject to a payment split, forced default to the Aware Super Fund if the non-contributor spouse does not nominate, and calculation rules to reduce contributor benefits after family-law payments (Part 3, ss 20-27).
Prescribes arrangements tied to particular employee groups and awards: firefighters, police and ambulance officers, including which awards are prescribed, information‑sharing permissions (with employee consent), elections to relinquish additional benefit cover, and transfer/offset obligations to a Death and Disability Superannuation Fund (Parts 4-6; ss 28-40).
Current sections
Direct links to the current provisions in State Authorities Superannuation Regulation 2025.
additional surcharge amount means the amount of superannuation contributions surcharge assessed to be payable by a post payment surcharge assessment notice.
base salary, for Part 7—see section 41.
Commissioner of Taxation means the person holding office for the time being as the Commissioner of Taxation under a law of the Commonwealth.
continuous contributory service, for Part 2—see section 4.
contributor, for Part 3—see section 20(1).
contributor’s loading, for Part 7—see section 41.
Death and Disability Superannuation Fund, for Part 4—see section 28.
permanent firefighter, for Part 4—see section 28.
post payment surcharge assessment notice means a notice of assessment—
(b) that is received by the former contributor after a benefit has commenced to be paid or has been paid to the former contributor.
relevant period, for Part 7—see section 41.
relevant shift, for Part 7—see section 41.
surcharge deduction cap means the maximum surcharge deduction amount that may be determined by STC under the Act, section 45A(1C) in relation to a benefit payable to a former contributor.
total surcharge amount, in relation to a former contributor, means the sum of the following—
(a) the total superannuation contributions surcharge that has been 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 that notice,
(c) the interest payable for the surcharge debt account, within the meaning of the Act, section 45A, kept in relation to the former contributor.
Note 1—
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
Note 2—
See the Act, sections 3 and 36 for definitions that apply to this regulation.
Part 2
Reduction of benefits
Part 2 Reduction of benefits
Part 2 Reduction of benefits
Division 1
Reductions relating to tax liabilities—the Act, s 45A
Division 1 Reductions relating to tax liabilities—the Act, s 45A
Division 1 Reductions relating to tax liabilities—the Act, s 45A
4
Definitions
4 Definitions
4 Definitions
In this part—
continuous contributory service, for a contributor, means the period beginning on the contributor’s entry date and ending on the contributor’s exit date.
taxable date means the date from which STC is liable to pay income tax under a Commonwealth taxation law for employer contributions to the Fund.
5
Prescribed benefits
5 Prescribed benefits
5 Prescribed benefits
(1) For the Act, section 45A(2)(a), the benefits provided under the following provisions of the Act are prescribed—
(a) section 37,
(b) section 39,
(c) section 40,
(d) section 41,
(e) section 42,
(f) section 43.
(2) Despite subsection (1), a benefit arising as a result of the death of a person must not be reduced by STC to offset tax liabilities of the Fund except as provided by section 10.
6
Reduction for the Act, section 37
6 Reduction for the Act, section 37
6 Reduction for the Act, section 37
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 37—
where—
R is the amount of the reduction.
A is the accrued benefit points for the contributor at the contributor’s exit date.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the contributor.
F is the contributor’s final average salary.
(2) This section does not apply to a benefit arising as a result of the death of a contributor.
7
Reduction for the Act, sections 39, 40 and 42
7 Reduction for the Act, sections 39, 40 and 42
7 Reduction for the Act, sections 39, 40 and 42
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 39, 40 or 42—
where—
R is the amount of the reduction.
A is the accrued benefit points for the contributor at the contributor’s exit date.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the contributor.
S is the contributor’s final salary.
8
Reduction for the Act, section 41
8 Reduction for the Act, section 41
8 Reduction for the Act, section 41
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 41—
where—
R is the amount of the reduction.
T is the period in years, with a fractional part of a year being calculated based on complete contribution periods, that commenced on the most recent of the taxable date or the contributor’s entry date and ended on the contributor’s exit date.
C is the amount of the contributor-financed benefit payable under the Act, section 41(2)(a).
A is the accrued benefit points for the contributor at the contributor’s exit date.
Y is the sum of the contributor’s contributed points figures calculated in relation to the contributor for the applicable contribution periods.
(2) This section does not apply to a benefit if the contributor’s period of continuous contributory service is less than 10 years.
9
Reduction for the Act, section 43
9 Reduction for the Act, section 43
9 Reduction for the Act, section 43
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit if a contributor elects to provide for a deferred benefit under the Act, section 43—
where—
R is the amount of the reduction.
A is the accrued benefit points for the contributor at the contributor’s exit date.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the contributor.
F is the contributor’s final average salary.
K is the discount factor determined by STC for the Act, section 43(6)(b).
n is the period expressed in years between the contributor’s age at the contributor’s exit date and the early retirement age, with a fractional part of a year being calculated on the basis of complete contribution periods.
10
Reduction for transferred contributor under 1988 regulation
10 Reduction for transferred contributor under 1988 regulation
10 Reduction for transferred contributor under 1988 regulation
(2) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a pension benefit for a transferred contributor, or other eligible person, who elects to take a pension benefit under the 1988 regulation, clause 38—
where—
R is the amount of the reduction.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the transferred contributor concerned.
P is—
(a) if the transferred contributor is dead—the proportion of the pension that is attributable to accrued benefit points and that, but for this section, would be payable under the 1988 regulation, clause 44, to the spouse or de facto partner of the contributor, or
(b) otherwise—the proportion of the pension that is attributable to accrued benefit points and that, but for this section, would be payable to the transferred contributor under the 1988 regulation, clause 40, 41, 42 or 43.
(3) If a transferred contributor or other person referred to in subsection (2) elects to convert to a pension benefit only a portion of the benefit points of the transferred contributor, the benefit to be derived from the benefit points remaining after conversion must be reduced in accordance with the provisions of this part that apply to the benefit.
11
Reduction for transferred contributor under 1989 regulation
11 Reduction for transferred contributor under 1989 regulation
11 Reduction for transferred contributor under 1989 regulation
(2) For the Act, section 45A(2)(b), if the benefit of a transferred contributor is reduced in accordance with a formula set out in section 6, 7 or 9, the multiple “0.025” in the formula must be read as “0.03”.
12
Reduction for superannuation contributions surcharge
12 Reduction for superannuation contributions surcharge
12 Reduction for superannuation contributions surcharge
For the Act, section 45A(3), the benefits provided under the following provisions of the Act are prescribed—
(a) section 37,
(b) section 38,
(c) section 39,
(d) section 40,
(e) section 41,
(f) section 42,
(g) section 43.
13
Further reduction for superannuation contributions surcharge
13 Further reduction for superannuation contributions surcharge
13 Further reduction for superannuation contributions surcharge
(1) For the Act, section 45A(6)(b), STC may, at the request of a former contributor—
(a) reduce the amount of the former contributor’s benefit by the lesser of—
(i) the additional surcharge amount for the former contributor, or
(ii) the amount, not being less than $0, that is equal to the amount of the surcharge deduction cap after deducting any previously met surcharge liability, and
(b) pay the amount by which the benefit is reduced to—
(i) the former contributor, or
(ii) the Commissioner of Taxation.
(2) STC may obtain actuarial advice for the purposes of determining the amount by which the former contributor’s benefit is to be reduced.
(3) This section does not authorise STC to pay—
(a) 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, or
(b) an amount of general interest charged in relation to an additional surcharge amount payable under a post payment surcharge assessment notice, unless—
(i) the request for the payment is made by the former contributor, and
(ii) the request is made within a reasonable period after receiving the notice, as determined by STC.
(4) 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 of the benefit of the former contributor have previously been made under this section or the Act in relation to the superannuation contributions surcharge.
14
Maximum surcharge deduction amount
14 Maximum surcharge deduction amount
14 Maximum surcharge deduction amount
For the Act, section 45A(1C), the following amounts are prescribed—
(a) for a benefit payable to a contributor or former contributor that accrued after 20 August 1996 and before 1 July 2003—15%,
(b) for a benefit payable to a contributor or former contributor that accrued on or after 1 July 2003 and before 1 July 2004—14.5%,
(c) for a benefit payable to a contributor or former contributor that accrued on or after 1 July 2004 and before 1 July 2005—12.5%.
Division 2
Reductions relating to no-TFN tax—the Act, s 45B
Division 2 Reductions relating to no-TFN tax—the Act, s 45B
Division 2 Reductions relating to no-TFN tax—the Act, s 45B
15
Reductions relating to no-TFN tax
15 Reductions relating to no-TFN tax
15 Reductions relating to no-TFN tax
(1) For the Act, section 45B(1)(d), the benefits provided under the following provisions of the Act are prescribed—
(a) section 37,
(b) section 38,
(c) section 39,
(d) section 40,
(e) section 41,
(f) section 42,
(g) section 43.
(2) STC must create a debt account in the Fund for each contributor or former contributor for whom a benefit is liable to be reduced under the Act, section 45B.
(3) STC must consider the debt account when determining the amount of the reduced benefit.
Note—
Under the Act, section 45B(3), STC must obtain actuarial advice before determining the amount of the reduced benefit.
16
Provision of information
16 Provision of information
16 Provision of information
STC must, at least once a year—
(a) give each contributor and former contributor a statement of the balance of the debt account created by STC for the contributor or former contributor, and
(b) if a tax file number has not previously been given—request that the contributor or former contributor give STC the number.
Division 3
Reductions relating to early release of benefits—the Act, s 43D
Division 3 Reductions relating to early release of benefits—the Act, s 43D
Division 3 Reductions relating to early release of benefits—the Act, s 43D
17
Application of division
17 Application of division
17 Application of division
The following may be reduced under this division—
(a) a benefit under the following provisions of the Act—
(i) section 37,
(ii) section 38,
(iii) section 39,
(iv) section 40,
(v) section 41,
(vi) section 42,
(vii) section 42AB,
(b) a deferred benefit.
18
Reduction relating to early release of benefit
18 Reduction relating to early release of benefit
18 Reduction relating to early release of benefit
(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—
(a) section 43B, or
(b) section 43C.
(2) If an early release benefit is released to a former contributor who has provided for a deferred benefit or had a benefit preserved under the Act—
(a) STC must, on and from the date of the release—
(i) calculate the amount of the benefit provided for or preserved for a lump sum, 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, the amount of the benefit must be reduced 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 when the benefit is payable.
(4) Despite subsection (3), if a benefit is deferred or preserved under the Act after the release of an early release benefit and before a benefit is otherwise payable to the contributor—
(a) STC must, on and from the date the benefit is deferred or preserved—
(i) calculate the amount of benefit deferred or preserved for a lump sum, and
(ii) reduce the amount of the benefit deferred or preserved by the amount debited to the debt account when the benefit is deferred or preserved, and
(b) when the deferred or preserved benefit is payable, the amount of the benefit must be reduced by the amount debited to the debt account when the benefit was deferred 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 purpose of determining the amount of a reduced benefit.
(7) For subsections (2) and (4), STC may determine which component or components of a benefit is reduced.
(8) This section does not apply to reduce an early release benefit payable under the Act, section 43B or 43C.
19
Consent to benefit reduction
19 Consent to benefit reduction
19 Consent to benefit reduction
Before releasing a benefit under the Act, section 43B or 43C, 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.
Part 3
Family law provisions
Part 3 Family law provisions
Part 3 Family law provisions
20
Definitions
20 Definitions
20 Definitions
(1) In this part—
contributor includes a former contributor.
(2) Words and expressions used in this part have the same meaning as they have in the Act, Part 5AA.
21
Application to other schemes
21 Application to other schemes
21 Application to other schemes
This part applies to persons referred to in the Act, section 45G in the same way as it applies to contributors.
22
Valuation of superannuation interests—the Act, s 45K(h)
22 Valuation of superannuation interests—the Act, s 45K(h)
22 Valuation of superannuation interests—the Act, s 45K(h)
(1) This section applies for—
(a) the Act, Part 5AA, and
(b) the family law superannuation legislation.
(2) The value of a contributor spouse’s superannuation interest must be determined in accordance with the approved valuation method.
Prescribed period for non-contributor spouses—the Act, s 45I(5)(a) and (b)
23 Prescribed period for non-contributor spouses—the Act, s 45I(5)(a) and (b)
23 Prescribed period for non-contributor spouses—the Act, s 45I(5)(a) and (b)
For the Act, section 45I(5)(a) and (b), the prescribed period is 60 days after notice is given to a non-contributor spouse under section 24.
24
Notice when entitlement becomes payable—the Act, s 45K(e)
24 Notice when entitlement becomes payable—the Act, s 45K(e)
24 Notice when entitlement becomes payable—the Act, s 45K(e)
(1) STC must give a contributor and a 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, or
(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 State Authorities 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 an 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 of the required method of payment, or
(ii) otherwise—nominate a complying superannuation fund or an 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 ceases to be 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
Payment of family law superannuation entitlements—the Act, s 45K(b), (e) and (f)
25 Payment of family law superannuation entitlements—the Act, s 45K(b), (e) and (f)
25 Payment of family law superannuation entitlements—the Act, s 45K(b), (e) and (f)
(1) An amount of a non-contributor spouse’s family law superannuation entitlement that must be paid or released by STC must be released when, or as soon as practicable after, the details referred to in section 24(4)(b)(i) are received.
(2) If the amount must be transferred or rolled over, the amount must be transferred or rolled over—
(a) to a complying superannuation fund or an RSA nominated by the non-contributor spouse under this part within 30 days after the nomination is made, or
(b) if no nomination is made within the period prescribed by section 23—to the Aware Super Fund within 30 days after the end of the period.
(3) STC must, within 28 days after taking an action specified in subsection (1) or (2), 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—
Under the Family Law (Superannuation) Regulations 2025 of the Commonwealth, section 98, STC may charge reasonable fees in relation to payment splits, payment flags, flag lifting and other related matters. The fees are payable in equal parts by the contributor and the non-contributor spouse.
26
Reduction of benefits of contributors—the Act, s 45K(g)
26 Reduction of benefits of contributors—the Act, s 45K(g)
26 Reduction of benefits of contributors—the Act, s 45K(g)
(1) If a family law superannuation payment is made, the benefit payable to the non-contributor spouse under the Act must be reduced in accordance with this section at the following times—
(a) for an employer-financed benefit—when the benefit is paid to the contributor or transferred, or
(b) for a contributor-financed benefit—when the superannuation entitlement of the non-contributor spouse is paid, released, transferred or rolled over.
(2) The amount of the reduced employer-financed benefit must be calculated as follows—
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 paid in relation to the non-contributor spouse to the value of the benefit of the contributor 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 or deferred or transferred.
(3) If family law superannuation payments are made in relation to more than one spouse of the contributor, the amount of the reduced employer-financed benefit must be calculated by applying the reduction factor for each family law superannuation payment to the amount of the benefit payable under subsection (2).
(4) Each reduction factor must be calculated as follows—
where—
F is the reduction factor.
A and C have the same meanings as in subsection (2).
(5) The amount of the reduced contributor-financed benefit must be calculated as follows—
where—
R, V and A have the same meanings as in subsection (2).
(6) In this section—
benefit accrual, at a particular time, means a benefit accrual at that time as determined by STC on actuarial advice.
value of the benefit means the value of a benefit as determined by STC on actuarial advice.
27
Effect of benefit reductions on other benefits—the Act, s 45K(j) and (k)
27 Effect of benefit reductions on other benefits—the Act, s 45K(j) and (k)
27 Effect of benefit reductions on other benefits—the Act, s 45K(j) and (k)
(1) STC may commute part of a pension payable to a person referred to in the Act, section 45G(1) if—
(a) the commutation is for the purposes of paying a family law superannuation entitlement to, or for, the person’s spouse, and
(b) the amount of the commuted pension is reduced in accordance with section 26.
(2) A benefit payable under the Act to a person on the death of a contributor whose benefit is reduced as a result of a family law superannuation payment must be based on the amount of the reduced benefit.
(3) Nothing in this part affects any other right of a person to commute a pension.
Part 4
Firefighters—death and incapacity
Part 4 Firefighters—death and incapacity
Part 4 Firefighters—death and incapacity
28
Definitions
28 Definitions
28 Definitions
In this part—
Death and Disability Superannuation Fund means the Death and Disability Superannuation Fund established under the firefighters award
permanent firefighter means a person employed as a permanent firefighter within the meaning of the award relating to death and disability benefits for firefighters that applied to the person at the time of employment.
29
Prescribed firefighters award—the Act, s 46AF
29 Prescribed firefighters award—the Act, s 46AF
29 Prescribed firefighters award—the Act, s 46AF
For the Act, section 46AF, definition of firefighters award, the Crown Employees (Fire and Rescue NSW Firefighting Staff Death and Disability) Award 2023 is prescribed.
30
Provision of information—the Act, s 46AH(1)(e)
30 Provision of information—the Act, s 46AH(1)(e)
30 Provision of information—the Act, s 46AH(1)(e)
For the purpose of complying with or giving effect to the firefighters award, STC may, with the consent of the relevant employee, give information about the employee obtained in the administration of the Act to—
(a) Fire and Rescue NSW, or
(b) the trustees of the Death and Disability Superannuation Fund.
31
Certain firefighters may not apply for additional benefit—the Act, s 46AH(1)(d)
31 Certain firefighters may not apply for additional benefit—the Act, s 46AH(1)(d)
31 Certain firefighters may not apply for additional benefit—the Act, s 46AH(1)(d)
(1) This section applies to a contributor who—
(a) commenced employment as a permanent firefighter on or before 27 June 2003 and did not have an application for additional benefit cover approved under the Act, section 22 before 27 June 2003, or
(b) commenced employment as a permanent firefighter on or after 27 June 2003 and did not have an application for additional benefit cover approved under the Act, section 22 when commencing employment as a permanent firefighter.
(2) Despite the Act, section 20, a contributor to whom this section applies may not elect to be covered for the additional benefit while employed as a permanent firefighter.
32
Firefighters who elect to relinquish cover for additional benefit—the Act, s 46AH(1)(d)
32 Firefighters who elect to relinquish cover for additional benefit—the Act, s 46AH(1)(d)
32 Firefighters who elect to relinquish cover for additional benefit—the Act, s 46AH(1)(d)
(1) A person who commenced employment as a permanent firefighter after 26 June 2003 may elect to relinquish cover for the additional benefit within the period approved by Fire and Rescue NSW for this section.
(2) Despite the Act, section 22, the following provisions apply to a prescribed firefighter—
(a) the firefighter is not liable to pay the additional benefit levy for a period during which the firefighter is not covered, and
(b) STC must cease to provide additional benefit cover for the firefighter on and from—
(i) for a person who was a permanent firefighter on 27 June 2003 and who elected to relinquish cover for the additional benefit before 27 June 2003—27 June 2003, or
(ii) otherwise—the date advised to STC by Fire and Rescue NSW, and
(c) the firefighter is not entitled to be covered for the additional benefit while employed as a permanent firefighter.
(3) In this section—
prescribed firefighter means a firefighter who—
(a) elects to relinquish cover for the additional benefit in accordance with this section, or
(b) elected to relinquish cover for the additional benefit in accordance with—
Transfer of amount to Death and Disability Superannuation Fund—the Act, s 46AH(1)(e)
33 Transfer of amount to Death and Disability Superannuation Fund—the Act, s 46AH(1)(e)
33 Transfer of amount to Death and Disability Superannuation Fund—the Act, s 46AH(1)(e)
STC must, for the purposes of complying with or giving effect to the firefighters award, transfer to the Death and Disability Superannuation Fund an amount required as an offset under the firefighters award, but only if the firefighter concerned consents.
Part 5
Police officers—death and disability
Part 5 Police officers—death and disability
Part 5 Police officers—death and disability
34
Provision of information—the Act, s 46AK(1)(c)
34 Provision of information—the Act, s 46AK(1)(c)
34 Provision of information—the Act, s 46AK(1)(c)
STC may, with the consent of the relevant employee, give the NSW Police Force or FTC information about the employee obtained in the administration of the Act for the purposes of complying with or giving effect to—
(a) the police officer support scheme under the Police Act 1990, Part 9B, or
Certain police officers may not apply for additional benefit—the Act, s 46AK(1)(a)
35 Certain police officers may not apply for additional benefit—the Act, s 46AK(1)(a)
35 Certain police officers may not apply for additional benefit—the Act, s 46AK(1)(a)
(1) This section applies to a contributor who—
(a) commenced employment as a police officer on or before 30 January 2006 and did not have an application for additional benefit cover approved under the Act, section 22 before 30 January 2006, or
(b) commenced employment as a police officer on or after 30 January 2006 and did not have an application for additional benefit cover approved under the Act, section 22 when commencing employment as a police officer.
(2) Despite the Act, section 20, a contributor to whom this section applies may not elect to be covered for the additional benefit while employed as a police officer.
36
Police officers may elect to relinquish cover for additional benefit—the Act, s 46AK(1)(a)
36 Police officers may elect to relinquish cover for additional benefit—the Act, s 46AK(1)(a)
36 Police officers may elect to relinquish cover for additional benefit—the Act, s 46AK(1)(a)
(1) A police officer who was not a police officer immediately before 2 March 2012 may elect to relinquish cover for the additional benefit within 3 months after the day on which the police officer became a police officer.
(2) Despite the Act, section 22, the following provisions apply to a prescribed police officer—
(a) the police officer is not liable to pay the additional benefit levy for a subsequent period during which the police officer is not covered for the additional benefit, and
(b) STC must not provide the additional benefit cover to the police officer on and from the date the Commissioner of Police advises STC is the first day on which the police officer is covered for death or disability under an approved death and disability insurance policy.
(3) The Commissioner of Police may, by written notice to STC, extend the period within which a police officer may elect to relinquish cover for the additional benefit.
(4) In this section—
prescribed police officer means a police officer who—
(a) elects to relinquish cover for the additional benefit in accordance with this section, or
(b) elected to relinquish cover for the additional benefit in accordance with—
Prescribed ambulance officers award—the Act, s 46AL
37 Prescribed ambulance officers award—the Act, s 46AL
37 Prescribed ambulance officers award—the Act, s 46AL
For the Act, section 46AL, definition of ambulance officers award, the NSW Ambulance Income Protection and Death Benefits (State) Award 2017 is prescribed.
38
Provision of information—the Act, s 46AN(1)(c)
38 Provision of information—the Act, s 46AN(1)(c)
38 Provision of information—the Act, s 46AN(1)(c)
(1) STC may, with the consent of the relevant employee, give the Ambulance Service of NSW or FTC information about the employee obtained in the administration of the Act for the purposes of complying with or giving effect to the ambulance officers award.
Certain ambulance officers not entitled to additional benefit—the Act, s 46AN(1)(a)
39 Certain ambulance officers not entitled to additional benefit—the Act, s 46AN(1)(a)
39 Certain ambulance officers not entitled to additional benefit—the Act, s 46AN(1)(a)
Despite the Act, section 20, a contributor is not entitled to coverage for the additional benefit while employed as an ambulance officer if the contributor had not had an application for additional benefit cover approved under the Act, section 22 before 12 October 2011.
40
Ambulance officers may elect to relinquish cover for additional benefit—the Act, s 46AN(1)(a)
40 Ambulance officers may elect to relinquish cover for additional benefit—the Act, s 46AN(1)(a)
40 Ambulance officers may elect to relinquish cover for additional benefit—the Act, s 46AN(1)(a)
(1) An ambulance officer who was not an ambulance officer immediately before 12 October 2011 may elect to relinquish cover for the additional benefit within 3 months after the day on which the ambulance officer became an ambulance officer.
(2) Despite the Act, section 22, the following provisions apply in relation to a prescribed ambulance officer—
(a) the ambulance officer ceases to be liable to pay the additional benefit levy for any subsequent period during which the ambulance officer is not covered for the additional benefit,
(b) STC must cease to provide the additional benefit cover of the ambulance officer on and from the date that is the first day on which the ambulance officer is covered for a death or incapacity benefit payable under the ambulance officers award,
(c) the ambulance officer is not entitled to be covered for the additional benefit while employed as an ambulance officer.
(3) The Secretary of the Ministry of Health may, by written notice to STC, extend the period within which an ambulance officer may elect to relinquish cover for the additional benefit.
(4) In this section—
prescribed ambulance officer means an ambulance officer who—
(a) elects to relinquish cover for the additional benefit in accordance with this section, or
(b) elected to relinquish cover for the additional benefit in accordance with—
base salary, for a contributor, means the remuneration, salary or wages payable to the contributor under an award of an industrial tribunal or under an industrial or enterprise agreement, but excluding all additional allowances payable to the contributor.
contributor’s loading means loading to be treated as part of a contributor’s salary.
relevant period, for a contributor, means the period of 12 months ending on 31 December immediately preceding the date on which the salary of the contributor is calculated for the Act.
relevant shift means a shift worked by an employee for which a shift allowance is payable by an employer.
42
Determination of loading for shift allowance
42 Determination of loading for shift allowance
42 Determination of loading for shift allowance
A contributor’s loading must be determined under whichever of the following applies to the contributor—
(a) section 43,
(b) section 44,
(c) section 45.
43
Contributor’s loading—calculation based on relevant shifts
43 Contributor’s loading—calculation based on relevant shifts
43 Contributor’s loading—calculation based on relevant shifts
(1) If a contributor is paid shift allowances for shifts that the contributor has worked during a relevant period, the contributor’s loading for those allowances must be determined by reference to the number of relevant shifts the contributor is taken to have worked during the relevant period.
(2) For subsection (1), the number of relevant shifts a contributor is taken to have worked during a relevant period is the number calculated as follows—
where—
N is the number of relevant shifts the contributor is taken to have worked during the relevant period.
H is the number of hours per shift regularly required to be worked, whether by the contributor or any comparable worker, in relevant shifts during the relevant period.
H0 is the least number of hours per shift regularly required to be worked, whether by the contributor or any comparable worker, in relevant shifts during any calendar year after 1987, including the relevant period.
S is the sum of—
(a) the number of relevant shifts the contributor worked during the relevant period, and
(b) the number of relevant shifts the contributor would have worked during the relevant period but for the contributor being on leave, being leave for which a shift allowance or an equivalent allowance or loading, including that part of annualised salary that replaces shift allowance in relation to the contributor, is paid.
(3) The contributor’s loading in a relevant period is the percentage of the contributor’s base salary for the period corresponding to the number of relevant shifts a contributor is taken to have worked in a relevant period in the table to this subsection.
| Number of relevant shifts | Percentage of base salary |
| 0–104 | Nil |
| 105–156 | 10% |
| 157–208 | 15% |
| 209 or more | 20% |
44
Contributor’s loading—if amounts under agreement more than loading under section 43
44 Contributor’s loading—if amounts under agreement more than loading under section 43
44 Contributor’s loading—if amounts under agreement more than loading under section 43
(1) The contributor’s loading for shift allowances is the total of the amounts that the employer pays to the contributor as shift allowances for relevant shifts worked by the contributor during a relevant period (the relevant amounts) if—
(a) there is in force an agreement between, or a practice accepted by, a trade union and the employer of a contributor that was in force or accepted immediately before 18 December 1987, and
(b) the effect of the agreement or practice is that the relevant amounts are treated as loading for superannuation purposes, and
(c) the total of the relevant amounts is more than the loading determined for the period in relation to the contributor in accordance with section 43.
Contributor’s loading—if amounts less than loading under section 43
45 Contributor’s loading—if amounts less than loading under section 43
45 Contributor’s loading—if amounts less than loading under section 43
If the total of the amounts paid or payable to a contributor as shift allowances for shifts that the contributor has worked during a relevant period is less than the loading determined for the period in accordance with section 43, the total of those amounts is the contributor’s loading for those allowances.
Part 8
Miscellaneous
Part 8 Miscellaneous
Part 8 Miscellaneous
46
Minimum amount for election to defer benefit—the Act, s 43(1) and (1A)
46 Minimum amount for election to defer benefit—the Act, s 43(1) and (1A)
46 Minimum amount for election to defer benefit—the Act, s 43(1) and (1A)
For the Act, section 43(1) and (1A), the prescribed amount is $500.
Note—
The Act, section 43 provides for a contributor’s benefit under the Act to be deferred in certain circumstances.
47
Payment of amounts in excess of surcharge deduction cap—the Act, s 45A(6)
47 Payment of amounts in excess of surcharge deduction cap—the Act, s 45A(6)
47 Payment of amounts in excess of surcharge deduction cap—the Act, s 45A(6)
(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 to 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, if any, previously reimbursed to, or paid in relation to, the former contributor by STC under this section or the Act for the purposes of the 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—
(a) the request for the payment is made by the former contributor, and
(b) the request is made within a reasonable period after receiving the notice, as determined by STC.
Note—
Section 13 provides for further reduction of certain benefits resulting from the liability of a former contributor for a superannuation contributions surcharge.
48
Early retirement age—the Act, s 3(1)
48 Early retirement age—the Act, s 3(1)
48 Early retirement age—the Act, s 3(1)
For the Act, section 3(1), definition of early retirement age, the prescribed early retirement age is 58 years.
49
Savings
49 Savings
49 Savings
An act, matter or thing that, immediately before the repeal of the State Authorities 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 State Authorities Superannuation Regulation 2025.
2 Commencement
2 Commencement
2 Commencement
This regulation commences on 1 September 2025.
Note—
This regulation replaces the State Authorities 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 by a post payment surcharge assessment notice.
base salary, for Part 7—see section 41.
Commissioner of Taxation means the person holding office for the time being as the Commissioner of Taxation under a law of the Commonwealth.
continuous contributory service, for Part 2—see section 4.
contributor, for Part 3—see section 20(1).
contributor’s loading, for Part 7—see section 41.
Death and Disability Superannuation Fund, for Part 4—see section 28.
permanent firefighter, for Part 4—see section 28.
post payment surcharge assessment notice means a notice of assessment—
(b) that is received by the former contributor after a benefit has commenced to be paid or has been paid to the former contributor.
relevant period, for Part 7—see section 41.
relevant shift, for Part 7—see section 41.
surcharge deduction cap means the maximum surcharge deduction amount that may be determined by STC under the Act, section 45A(1C) in relation to a benefit payable to a former contributor.
taxable date, for Part 2—see section 4.
Fixes salary-loading mechanics for shift allowances, including precise definitions (base salary, contributor’s loading, relevant period/shift) and calculation tables and formulae for converting shift work into a loading treated as part of salary (Part 7; ss 41-45).
Provides miscellaneous operational items: minimum amount for election to defer a benefit ($500) (s 46), reimbursement or payment mechanics where a former contributor’s payments to Commissioner of Taxation exceed the surcharge deduction cap (s 47), the prescribed early-retirement age (58 years) (s 48), and savings from the prior regulation (s 49).
Official rationales are implicit in the cross-references: the regulation is largely technical and prescriptive. It implements tax‑recovery mechanics (Act, s 45A) and family-law splitting mechanics (Act, Part 5AA) and coordinates the State scheme with federal taxation and family law instruments (see the regulation’s repeated reference to Commonwealth taxation and family law instruments, e.g. ss 3, 22). Mechanically the regulation delegates particular numeric, timing, reporting and actuarial tasks to STC, prescribes formulas to limit discretion, and sets administrative timelines for notice and payment.
The regulation allocates decision authority: STC retains discretion in several areas (may obtain actuarial advice, may determine certain interest rates and reduce benefits when requested), while other matters are binding obligations (creation of debt accounts, annual statements, specified notice periods). Some boundaries remain undefined in the regulation (for example the “reasonable period” for requests in ss 13(3)(b)(ii) and 47(4)(b)), leaving STC a margin of administrative discretion.
Key operational interfaces created by the regulation are with the Commissioner of Taxation (s 3 definition; ss 13, 47 on payments and reimbursements), Commonwealth family law instruments for valuation (s 22), particular industrial awards or employer schemes for firefighters/police/ambulance officers (ss 29, 37), and a named default receiving fund (Aware Super Fund; s 24(4)(c)).
Main concepts
The regulation arranges a set of technical concepts that operationalise how benefits under the State Authorities Superannuation Act 1987 are adjusted, shared and reported when external obligations (tax or family law), or particular employment circumstances (firefighters, police, ambulance), intersect with the Fund.
Definitions and cross-references: the regulation builds on central terms in the Act and federal law; the regulation’s own definitions are concentrated in ss 3, 4 and 41. Important defined items include additional surcharge amount, total surcharge amount, post payment surcharge assessment notice, taxable date, continuous contributory service (Part 2, s 4) and contributor’s loading (Part 7, s 41). The regulation explicitly notes that the Act and the Interpretation Act 1987 affect interpretation (s 3 Note 1), and that the Act contains additional definitions (s 3 Note 2). Practitioners must therefore treat the regulation as completing, not replacing, the Act’s terminology.
Reduction mechanics for tax liabilities: Division 1 (Part 2, ss 5-14) prescribes which benefits are subject to reduction to meet Commonwealth taxation liabilities (s 5(1) listing Act ss 37, 39-43). It also limits reductions in death cases (s 5(2)). For each statutory benefit category, the regulation prescribes mathematical formulae for calculating R, the reduction (ss 6-11). Those formulae use parameters drawn from the Act and Fund records: accrued benefit points, continuous contributory service measured in days, final average salary or final salary, contributor-financed benefit amounts, and contributor-contributed points (see ss 6-9). The formulas are numeric, including multipliers (e.g. factors such as 0.025 or, for certain transferred contributors, 0.03 in s 11). The regulation also prescribes maximum surcharge deduction amounts by accrual period (s 14) which constrain how much of a benefit may be applied to satisfy surcharge obligations.
Debt-accounting and no-TFN tax: Division 2 (ss 15-16) requires STC to create a debt account in the Fund for contributors whose benefits may be reduced under Act s 45B (no-TFN tax), to consider that account when calculating reductions (s 15(2)-(3)), and to deliver annual balance statements and TFN requests (s 16). The Act requires actuarial advice before setting reduced amounts under s 45B and the regulation reaffirms STC’s obligations to obtain actuarial advice where required (s 15 note and s 18(6)).
Early release and deferred benefit interaction: Division 3 (ss 17-19) prescribes how early-release payments under Act ss 43B or 43C interact with deferred or preserved benefits: either by reducing the deferred/preserved lump-sum amount or by creating a debt account from which future benefits are reduced (s 18). Interest on early-release-related debt accounts is to be set by STC (s 18(5)). STC must obtain written consent from contributors before releasing benefits that will reduce future benefits (s 19).
Family law mechanics: Part 3 (ss 20-27) operationalises the Act’s Part 5AA family law framework. It prescribes that the Commonwealth-approved valuation method must be used to determine value (s 22), gives a short nomination window (60 days for non-contributor spouses; s 23), obliges STC to serve specified notices within set timeframes (s 24), and prescribes transfer/rollover timing to nominated funds or default to Aware Super Fund if no nomination is made (s 25). It also sets formulae to calculate reductions to contributors’ employer-financed and contributor-financed benefits after family-law payments (s 26), relying on actuarial advice for benefit accruals and values.
Prescribed awards and employment class rules: Parts 4-6 set out tailored rules for firefighters, police and ambulance officers: each Part prescribes a relevant award (e.g. firefighters award in s 29; ambulance officers award in s 37), permits information sharing (ss 30, 34, 38) with employer agencies or trustees but only with employee consent, and creates restrictions and elective windows for relinquishing additional benefit cover (ss 31-33, 35-36, 39-40). Transfers to the Death and Disability Superannuation Fund require firefighter consent (s 33).
Salary loading: Part 7 defines base salary, contributor’s loading, relevant period and relevant shift (s 41), and prescribes a choice of calculation methods for contributor’s loading tied to the number of relevant shifts (s 42). The primary method is a formula converting hours and shifts to a notional count N, mapping that to a percentage loading on base salary via a table (ss 43(2)-(3)). Alternative rules apply where pre‑1987 agreements treat amounts as loading (s 44) or where actual relevant shift payments are less than the formula‑determined loading (s 45).
Operational limits and miscellany: Part 8 sets the $500 threshold for electing to defer a benefit (s 46), prescribes mechanics for reimbursement where a former contributor has overpaid surcharge amounts beyond the cap (s 47), fixes the early retirement age at 58 (s 48), and carries forward continuity from the repealed 2020 regulation (s 49).
Across these concepts, STC is repeatedly entrusted with implementation tasks: creating and maintaining debt accounts, obtaining actuarial advice where required, setting interest on debt accounts, calculating reductions using prescribed formulae and issuing notices within set timeframes. The regulation thus marries fixed formulae and bounded decision-making with areas of administrative discretion.
Who it affects
Primary actors:
Contributors and former contributors to the State Authorities Superannuation Scheme: most substantive provisions directly concern contributors’ benefits, the circumstances in which benefits may be reduced to meet tax liabilities (Part 2), early releases and debt accounts (Div 3, ss 17-19), and family law payment splits (Part 3, ss 22-27). The regulation’s definitions (s 3, s 4) and the requirement for STC to give annual statements of debt account balances (s 16) place ongoing administrative obligations on STC with direct informational effects for contributors.
Non-contributor spouses: Part 3 establishes specific processes that affect non-contributor spouses in family law splits. They receive specific notice content (s 24(4)), have a prescribed response period of 60 days to provide payment or roll-over directions (s 23; s 24(4)(b)), and may have their family law superannuation entitlements transferred or rolled over to nominated funds or, by default, to the Aware Super Fund (s 24(4)(c), s 25(2)).
STC (the statutory trustee/administrator referenced in the Act): STC is central. The regulation repeatedly tasks STC with creating debt accounts (s 15(2)), calculating reductions per prescribed formulae (ss 6-11, 26), obtaining actuarial advice where required (ss 13(2), 15 note, 18(6), 26(6)), issuing notices within set periods (s 24), providing annual statements (s 16), and setting interest rates for debt accounts (s 18(5)). STC also has discretionary powers to reduce benefits at a former contributor’s request (s 13(1)) and to reimburse or pay tax authorities on behalf of former contributors (s 47).
Commissioner of Taxation: the regulation explicitly interacts with the Commissioner regarding superannuation contributions surcharge assessments and payments (definition in s 3), including options for STC or former contributors to pay amounts to the Commissioner (s 13(1)(b), s 47(2)) and reimbursement mechanics (s 47).
Employers and specified public-sector agencies: agencies such as Fire and Rescue NSW, the NSW Police Force and Ambulance Service of NSW are recipients of information that STC may provide, but only with the consent of the relevant employee (ss 30, 34, 38). These clauses therefore affect employer‑administration processes and coordination with STC and trustees of specified funds (e.g. Death and Disability Superannuation Fund trustees under s 30(b)).
Trustees of other funds and named default receiving fund: a non-contributor spouse may nominate a complying superannuation fund or RSA to receive a payment split (s 24(4)(b)), and the regulation names the Aware Super Fund as the default recipient if no nomination is made (s 24(4)(c)). Trustees of the Death and Disability Superannuation Fund are recipients of transferred offsets where firefighter consent is given (s 33).
Secondaryly affected persons and entities:
Actuaries and professional advisers: the regulation requires actuarial advice for specified calculations (ss 13(2), 15 note, 18(6), 26(6)). This creates a demand for actuarial assessment and formal advice in multiple decision points.
Family law practitioners and courts: the regulation specifies valuation methods for superannuation interests (s 22), and prescribes timing and content for notices and payment processing (ss 24-25), which affects family law settlements and enforcement.
Employers with award-based shift patterns: Part 7’s salary-loading calculations require employer records of shifts, allowances and hours (ss 41-45), potentially affecting payroll and enterprise agreement interpretation.
Groups whose entitlements are limited or constrained:
Contributors whose benefits arise from death: s 5(2) establishes that, despite general reduction powers, benefits arising from death must not be reduced by STC to offset tax liabilities except as provided by section 10 (the regulation cross‑refers to the Act’s limiting provision). This preserves a special protection for death benefits.
Transferred contributors from earlier transitional regulations: ss 10-11 provide special calculation rules for contributors whose benefits transferred under earlier transitional regulations (1988, 1989), affecting how reductions are computed (e.g. multiplier change in s 11).
Firefighters, police officers and ambulance officers in respect of the additional benefit: ss 31-33, 35-36, 39-40 create temporal eligibility limits and elective windows for relinquishing additional benefit cover and define administrative triggers when cover ceases.
Practical note: the regulation’s effects are technical and administrative rather than creating new substantive entitlements; it targets implementation: who gets notices, how reductions are computed and timed, what default recipients apply in family law transfers, and when STC must open and report debt accounts. Those working for STC, related agencies, or advising contributors will be most directly affected.
Key duties and rights
The regulation allocates a set of explicit duties to STC and corresponding rights or options to contributors, former contributors and non-contributor spouses. Below are the principal duties and rights drawn from the regulation text, with section citations.
Primary duties of STC (statutory trustee/administrator):
Create and maintain debt accounts: STC must create a debt account in the Fund for each contributor or former contributor for whom a benefit may be reduced under Act s 45B (s 15(2)). STC must consider the debt account when determining the reduced benefit (s 15(3)).
Provide annual information: STC must, at least once a year, give each contributor/former contributor a statement of the balance of the debt account and request a TFN if one has not been provided (s 16).
Follow specific formulae when reducing benefits: where reductions are authorised under the Act, STC must calculate reductions according to prescribed formulae in ss 6-11 (for various sections of the Act) and s 26 (family law reductions). The formulas use defined parameters; STC is to apply them when effecting reductions.
Obtain actuarial advice where required: the regulation explicitly authorises STC to obtain actuarial advice when determining reduction amounts (s 13(2), s 18(6)); and the regulation’s note under s 15 refers to an Act requirement to obtain actuarial advice for s 45B(3).
Issue specified notices and within set timeframes: under the family law provisions STC must give written notices to contributor and non-contributor spouse about payment splits, within 28 days of operative time or receipt of a splitting order (s 24(1)-(2)), and must, within 28 days after a payment action, give notices specifying amounts, calculations and recipient fund details (s 25(3)).
Reduce deferred or preserved benefits after early release or create debt accounts: where early release has occurred, STC must reduce deferred/preserved lump sums or create a debt account and debit early release amounts plus interest (s 18(2)-(5)).
Make transfers and rollovers within set times: family-law entitlements that must be transferred or rolled over must be sent to nominated complying funds or RSAs within 30 days of nomination or end of the prescribed period (s 25(2)).
Discretionary powers and constraints:
STC may, at the request of a former contributor, reduce the benefit by up to the additional surcharge amount or the surcharge deduction cap under a prescribed process and pay the reduced amount either to the former contributor or the Commissioner (s 13(1)).
STC may obtain actuarial advice (s 13(2), 18(6)), and may determine which component of a benefit is reduced (s 18(7)), and may set interest rates for debt accounts (s 18(5)).
In reimbursement and payment-over situations, STC may reimburse or pay the Commissioner on behalf of a former contributor (s 47(1)-(3)) but is limited in paying certain interest unless requested within a reasonable period (s 13(3)(b), s 47(4)).
Rights and procedural protections for contributors and former contributors:
Right to be informed: STC must supply annual debt account statements (s 16) and notices about family-law splits and payment/release events (ss 24-25).
Consent requirement before early release that reduces future benefits: STC must obtain the written consent of the contributor or former contributor before releasing a benefit under Act ss 43B or 43C if that release will reduce future benefits (s 19).
Option to request further reduction/payment to Commissioner: a former contributor may request STC to reduce benefits to pay an additional surcharge amount (s 13(1)) or request STC to pay amounts to the Commissioner under s 47(2).
Election and nomination rights in family law matters: a non-contributor spouse has a prescribed period (60 days) to provide payment/release or nominate a receiving fund (ss 23, 24(4)(b)); failing that, the amount will be credited to the Aware Super Fund (s 24(4)(c)).
Elective relinquishment of additional benefit: certain firefighters, police officers and ambulance officers have specified windows to elect to relinquish additional benefit coverage; those elections cease additional benefit liability and coverage from specified dates (ss 32, 36, 40).
Constraints and limits protecting beneficiaries:
Death benefit protection: a benefit arising from a person’s death (with one limited exception mentioned,see s 5(2) referencing s 10) must not be reduced by STC to offset tax liabilities, except as provided by the Act and the regulation’s limited authority in that direction (s 5(2)).
Cap on surcharge deductions: the regulation prescribes maximum surcharge deduction amounts by accrual period (s 14), which limit how much of benefits may be diverted to meet surcharge liabilities.
Notice and timing duties creating procedural rights:
Specific timing benchmarks in family law matters (28-day notices, 30-day rollovers) and the 60-day nomination window for non-contributor spouses (ss 23-25).
Administrative obligations create ancillary rights: the requirement to obtain actuarial advice for certain decisions gives contributors a procedural safeguard where complex valuation questions arise (s 15 note; s 26(6); s 13(2)).
Gaps and areas of STC discretion that affect rights:
“Reasonable period” phrases in s 13(3)(b)(ii) and s 47(4)(b) leave some element of timing discretion to STC; contributors’ ability to recover interest charged depends on making requests within those STC-determined reasonable periods.
Interest rates on debt accounts and for early-release indebtedness are to be set by STC (s 18(5)), which affects the quantum of recovery charged to future benefits and is a material administrative discretion.
In short, duties are tightly expressed where the regulation enforces federal tax and family law coordination,calculation formulas, notice timing, debt-accounting and fund transfers,while STC retains operational discretion in actuarial sourcing, interest-setting and determining which benefit component is reduced.
Penalties and enforcement
The regulation itself contains no express civil or criminal penalty provisions. It is primarily prescriptive and administrative, allocating functions and procedural duties to STC and setting calculation methods, account‑management obligations, and notice periods. Enforcement and penalties therefore arise by operation of the Act, Commonwealth taxation law, and family law processes that the regulation supports. The key enforcement mechanisms and practical compliance levers are as follows, grounded in the regulation’s text.
Reliance on the Act and Commonwealth law: the regulation repeatedly implements sections of the Act that, in turn, provide the legal authority to reduce benefits and create debt accounts (for example, Act s 45A, s 45B and Part 5AA are repeatedly invoked). Any enforcement of STC or contributor non-compliance will therefore proceed under the Act and any sanctions or remedies available there. Similarly, the regulation gives effect to Commonwealth taxation obligations (ss 3 definition of Commissioner of Taxation and references to the Superannuation Contributions Tax (Assessment and Collection) Act 1997), so failure to satisfy Commonwealth tax liabilities will attract the enforcement mechanisms of federal taxation law, including assessments and collection powers exercisable by the Commissioner.
Administrative enforcement via STC powers: STC is given express powers to reduce benefits, create debt accounts, debit interest and pay amounts to the Commissioner (ss 13, 15, 18, 47). These are not penalties against third parties so much as administrative means by which tax or debt liabilities are enforced against benefits. An employer or contributor who fails to respond to a family law nomination within prescribed periods cannot prevent STC from defaulting the amount to the Aware Super Fund (s 24(4)(c), s 25(2)). Similarly, a contributor who receives a post payment surcharge assessment notice may find their benefit reduced or a debt account established to recover the surcharge (s 3 definition; s 13).
Court and family law enforcement: for family law payment splits and splitting orders, the regulation ties STC’s actions to Commonwealth family law instruments (s 22 referencing the Commonwealth’s valuation approval; s 24 references operative time under the Family Law Act 1975). Enforcement of payment splits or compliance with splitting orders will therefore have recourse to family law proceedings and enforcement mechanisms available under the Family Law Act and related Commonwealth instruments.
Tax collection enforcement: where a surcharge is assessed by the Commissioner of Taxation and becomes payable, the regulation contemplates STC paying amounts to the Commissioner or the Commissioner collecting directly. The Commissioner’s existing collection powers (not reproduced in this regulation) would apply to pursue unpaid liabilities once assessed.
Practical enforcement levers and compliance consequences:
Benefit reductions are an enforcement tool: STC’s power to reduce benefits pursuant to prescribed formulas (ss 6-11) and to debit debt accounts (ss 15, 18) is the primary mechanism by which tax liabilities and early-release recoveries are enforced.
Time-based compliance consequences: failure by a non-contributor spouse to nominate a receiving fund within the 60-day window results in a default credit to Aware Super Fund (s 24(4)(c)). Failure to provide details for payment/release triggers the same outcome (s 24(4)(b)-(c)).
Interest accrual as an enforcement cost: the regulation permits STC to debit interest at a rate fixed by STC on early-release-related debt accounts (s 18(5)). This attaches a cost to contributors’ delayed repayment and is an administrative enforcement instrument.
Lack of express penalty provisions in the regulation raises practical enforcement issues:
The regulation does not set explicit sanctions for STC’s failure to comply with notice or statement duties; remedies remain those available under the Act or through judicial review of administrative decisions where applicable.
The regulation leaves certain definitions of timing and reasonableness to STC (e.g. “reasonable period” in ss 13(3)(b)(ii) and 47(4)(b)), which may complicate external enforcement oversight without recourse to Act-imposed standards or proportionality review.
For advisors, the enforcement landscape is therefore procedural and administrative: compliance is enforced by benefit adjustments, debt-account debits, statutory transfers to nominated funds or defaults, and through interaction with federal taxation and family law enforcement regimes rather than by novel regulatory fines within this instrument.
How it interacts with other laws
This regulation operates as an instrument completing and implementing provisions of the State Authorities Superannuation Act 1987. It also interfaces with several Commonwealth laws and state awards. The interaction points are numerous and materially constrain how STC and contributors must act.
Primary inter-legislative connections:
The State Authorities Superannuation Act 1987 (the Act): the regulation repeatedly implements specific Act sections. For example, Divisions 1-3 of Part 2 operationalise Act s 45A (reductions for tax liabilities) and s 45B (reductions relating to no-TFN tax); Part 3 gives effect to Act Part 5AA (family law provisions); Parts 4-6 implement Act ss 46AF-46AN (death and disability provisions for specific employee groups); Part 7 implements s 4(1)(a)(i) as to salary loading; and Part 8 implements Act s 43(1) and (1A) regarding deferred benefits (s 46). The regulation therefore cannot be read in isolation; the Act provides definitions (s 3 note), threshold powers and limits referred to across the instrument.
Commonwealth taxation law: the regulation is designed to give effect to liability for the superannuation contributions surcharge under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and interacts with the Commissioner of Taxation via defined procedures. It defines “post payment surcharge assessment notice” and “total surcharge amount” in s 3, and sets mechanics for payment or reimbursement to the Commissioner (ss 13, 47). The Act and Commonwealth tax law thus jointly determine the tax liability and the method of recovery.
Family Law Act 1975 and Commonwealth family law superannuation instruments: Part 3 explicitly incorporates federal family law instruments. The valuation method for superannuation interests is prescribed to be the Commonwealth-approved method set out in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025, Schedule 2, Part 7 (s 22). The regulation also uses the Family Law Act definition of operative time for payment splits (s 24(6)). STC’s processes for payment splits and valuation therefore must align with Commonwealth family law practice and valuation instruments.
Industrial awards and enterprise agreements: Parts 4-6 prescribe particular awards (s 29 prescribes the Crown Employees (Fire and Rescue NSW Firefighting Staff Death and Disability) Award 2023; s 37 prescribes the NSW Ambulance Income Protection and Death Benefits (State) Award 2017). The regulation allows STC to share employee information with named agencies to comply with awards but only with employee consent (ss 30, 34, 38). Part 7’s salary-loading calculation also refers to remuneration under an award or an industrial/enterprise agreement (s 41).
Operational and administrative linkages:
Trustee and external fund coordination: the regulation prescribes that family law entitlements, if not nominated, will default to the Aware Super Fund (s 24(4)(c)). It also requires STC to transfer funds to the Death and Disability Superannuation Fund where firefighter consent is given (s 33). These provisions force coordination across trustee and fund boundaries and implicate rollover/transfer processes governed by superannuation law and industry practice.
Actuarial standards and professional advice: multiple provisions require or allow STC to obtain actuarial advice (s 13(2); s 15 note; s 18(6); s 26(6)). The accuracy and defensibility of actuarial determinations will depend on professional standards and may implicate broader regulatory frameworks for actuarial practice.
Tensions and gaps at the interface:
The regulation prescribes the method for valuing superannuation interests by reference to a Commonwealth-made instrument (s 22). That means STC and practitioners must monitor and apply any changes in the Commonwealth instrument and its interaction with New South Wales rules.
The surcharge deduction cap percentages are prescribed for accruals up to 2005 (s 14). The regulation does not specify later percentages. The Act’s s 45A(1C) is the primary provision to check for current caps; practitioners will need to reconcile the regulation with any Act amendments or subsequent instruments.
“Reasonable period” references for paying interest charged by the Commissioner (s 13(3)(b), s 47(4)) are not defined in the regulation, creating reliance on STC administrative determinations and potential contestability under the Act or judicial review.
Data sharing with public-sector employers and trustees requires employee consent under this regulation (ss 30, 34, 38). Where consent is withheld, STC may be unable to comply with or give effect to awards; the regulation does not create compulsion to disclose in those cases.
Practical consequence: the regulation tightly links state superannuation administration to federal taxation and family law instruments and to particular state awards. Operational compliance therefore requires simultaneous attention to the Act, to Commonwealth tax law and family law instruments, to the named awards, and to professional actuarial standards.
Amendment history
This instrument is presented as a fresh regulation that commences on 1 September 2025 and replaces the State Authorities Superannuation Regulation 2020. The regulation itself contains the following amendment and transitional history notes and cross-references which are relevant to practitioners:
Replacement of the 2020 regulation: s 2 provides that the regulation commences on 1 September 2025, and a note at s 2 indicates it replaces the State Authorities Superannuation Regulation 2020, which is repealed on that date by the Subordinate Legislation Act 1989, section 10(2).
Continuity savings: s 49 preserves the effect of acts done, matters or things operating under the repealed 2020 regulation; such acts continue to have effect under the new regulation. This preserves existing administrative states and prevents a gap at the repeal/commencement boundary.
Cross-reference to older transitional instruments: the regulation contains specific provisions that apply to transferred contributors under earlier transitional regulations: the State Authorities Superannuation (Transitional Provisions) Regulation 1988 (s 10) and the State Authorities Superannuation (State Public Service Superannuation Scheme Transfer) (Savings and Transitional) Regulation 1989 (s 11). These clauses adjust formula factors for transferred contributors and preserve transitional calculation methods for pension conversions under older regimes.
References to repealed past regulations in coverage elections: Parts 4-6 (ss 32(3), 36(4), 40(4)) explicitly refer back to earlier versions of the State Authorities Superannuation Regulation (2015, 2010, 2005, 2000) as relevant to people who made elections to relinquish cover under those earlier regulations. This indicates an effort to preserve and recognise earlier elective decisions across successive regulations.
Prescriptions reflecting changing policy windows: the regulation prescribes particular cut-off dates and windows for electing to relinquish additional benefit cover for specific employee groups (e.g. firefighters who commenced employment on or before 27 June 2003, police officers on or before 30 January 2006, ambulance officers before 12 October 2011) (ss 31, 35, 39). These are fixed dating rules that reflect historical policy choices; they are preserved in this regulation.
No other amendment entries or schedules of change are embedded within this text. The regulation therefore appears to be a consolidated replacement instrument which restates prior administrative details, updates cross-references to current awards (e.g. the 2023 firefighters award; s 29), and continues prior transitional arrangements. The practitioner should therefore:
Track the commencement date (1 September 2025) as the point at which administrative practices must align with the new text (s 2).
Review prior elections or decisions taken under the 2015-2000 regulations and the 1988/1989 transitional regulations where a transferred contributor or previously made election may have continuing effect (ss 10-11; ss 32, 36, 40).
Monitor for any later amending instruments that alter the prescribed percentages in s 14, default fund arrangements (s 24(4)(c)), or actuarial practice requirements.
This regulation is self-contained for operational detail but remains dependent on the Act for primary authority; any future amendment to the Act or to Commonwealth instruments referenced (for example the Family Law (Superannuation) Regulations or taxation law) could necessitate companion secondary amendments.
Litigation history
The regulation text contains no references to judicial decisions or litigation involving the instrument. It does not name any cases, nor does it reproduce any judicial interpretations. For the practitioner, this means:
There is no litigation history embedded in the regulation document to guide interpretation of its provisions.
Interpretation and contested application of the regulation will instead rely on the Act, common-law administrative law principles, and any relevant case law concerning the Act, federal taxation law, or family law that may address similar administrative issues. The regulation itself notes cross-references to Commonwealth instruments; any disputes about valuation methods in family law will be resolved principally under the Family Law Act and Commonwealth valuation instruments.
Where the regulation leaves matters to STC discretion (for example, determination of a reasonable period,ss 13(3)(b)(ii), 47(4)(b); interest rates,s 18(5); which component of benefit is reduced,s 18(7)), litigation risk exists if an aggrieved party challenges the reasonableness or lawfulness of those administrative decisions. Such challenges would be brought under the Act or by seeking judicial review on traditional administrative law grounds.
The regulation requires actuarial advice at specified junctures (ss 13(2), 15 note, 18(6), 26(6)). Litigation could arise over the adequacy of actuarial advice, the valuation models used, or the application of the prescribed formulae if parties challenge the computations underpinning reductions.
Advisers and administrators should therefore expect that disputes will engage the Act, federal taxation and family law instruments and that case law interpreting those statutes will be the primary body of binding authority. Because the regulation itself offers no litigation record or precedent, careful record-keeping of decisions, actuarial advice, notices and consent documents will be critical to defend administrative choices if contested.
Gotchas
The regulation contains a number of detailed provisions that create practical traps for administrators and advisers if not closely followed. Below are concrete “gotchas” drawn from the text, with references and suggested focal points for operational controls.
Timing definitions and notice windows are rigid and multi-layered (ss 24-25, s 23): family-law notices must be given within 28 days of operative time or receipt of the order (s 24(2)); non-contributor spouses have 60 days to respond (s 23). Failure to meet those clocks can trigger default transfers to Aware Super Fund (s 24(4)(c)). Ensure systems capture operative times for splits and receipt dates for orders.
“Reasonable period” left to STC discretion affects entitlements to have general interest paid by STC (ss 13(3)(b)(ii), 47(4)(b)): the regulation restricts STC from paying general interest charged in relation to an additional surcharge amount unless the former contributor requests payment within a reasonable period as determined by STC. No statutory benchmark is provided. Practically, STC should publish and record its “reasonable period” policy to reduce challenges.
Multiple interest regimes and STC-set rates: the amount debited to a debt account for early-release benefits includes interest at a rate determined by STC (s 18(5)). STC also may be required to consider general interest charged under Commonwealth assessment notices for total surcharge amounts (s 3 definition). Differing compounding bases, dates and rates could create reconciliation issues and disputes. Administrative transparency and clear methodology will be essential.
Surcharge deduction cap coverage is temporally limited (s 14): s 14 prescribes caps only for accruals up to 1 July 2005. The regulation does not state caps for accruals after 1 July 2005. Practitioners must reconcile this with the Act (s 45A(1C)) and any other instruments setting caps for later periods.
Death-benefit protection is qualified (s 5(2)): the regulation says benefits arising from a death must not be reduced by STC to offset tax liabilities except as provided by section 10. Section 10 in the regulation deals with transferred contributors under a 1988 regulation, but the broader protective contours depend on the Act. Advisers must consult the Act to determine the precise limits and exceptions.
Family law valuation method is externally prescribed (s 22): the regulation requires use of the Commonwealth’s approved valuation method (Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025). Any change to that Commonwealth instrument will alter valuation outcomes for the Fund; STC must track Commonwealth updates.
Default recipients may not be the practical choice for non-contributor spouses (s 24(4)(c)): if the non-contributor spouse fails to nominate, the default is the Aware Super Fund. This can produce unintended financial consequences for the spouse if that fund’s terms differ from what the spouse intended. Notices must therefore be clear and emphasise the consequences of non-response.
Multiple formulae and actuarial dependence: the regulation prescribes differing formulae across benefit types (ss 6-11) and allows STC to obtain actuarial advice (ss 13(2), 18(6), 26(6)). Errors in data (accrued benefit points, days of service, contributions) or in actuarial inputs (discount factors, final average salary) produce materially different reductions. Ensure robust data governance and engage qualified actuaries early.
Shift loading calculation contains subtle year-to-year minima (s 43(2)): H0 is “the least number of hours per shift regularly required ... in any calendar year after 1987, including the relevant period.” This historical minimum across many years can distort the N count and therefore the loading. Payroll must retain longitudinal records of hours for comparable workers.
Consent for information sharing and transfers is necessary: STC may only give employee information to specified agencies or trustees “with the consent of the relevant employee” (ss 30, 33, 34, 38). Failure to obtain or record valid consent will block transfers or offsets under the awards; administrators must store consent forms and link them to transfer actions.
Transferred contributor special rules: ss 10-11 treat transferred contributors differently and adjust formula coefficients (s 11 substitutes 0.03 for 0.025), with potential complexity when contributors convert only part of their points. Historical election records and transfer dates are crucial.
Interplay between early release and deferred benefits can create double counting risks: s 18 sets out sequences when early release occurs before or after deferral/preservation. STC must ensure the right calculation path is followed to avoid over- or under-reducing future benefits.
Minimum value for deferral election is low but binding: s 46 prescribes $500 as the minimum for electing to defer (Act s 43). Administrative systems must block deferral elections below that value.
In sum, the regulation contains technical formulae, interlocking timing rules and delegated administrative discretions. The common practical theme is the need for precise record-keeping, procedurally documented policy decisions (especially where the regulation uses “reasonable period” or STC-set interest), timely notice templates and process-mapped steps for valuation and actuarial procurement.
How to comply
Compliance requires a combination of legal alignment with the Act and Commonwealth instruments, operational controls, data governance and clear record-keeping. Below is a practical, source-grounded checklist describing what STC, employers, advisers and fund administrators must do to comply with this regulation.
Map responsibilities against the Act and this regulation:
Maintain a statutory compliance matrix linking Act provisions (e.g. ss 37-43, ss 45A-45B, Part 5AA) with the corresponding regulation clauses (e.g. s 5, ss 6-11, ss 15-19, ss 22-27). The regulation repeatedly requires reference to the Act (see s 3 note). Ensure legal staff can cross-reference the two.
Debt-account creation and reporting:
Implement automated accounting entries to create a debt account for each contributor for whom benefits may be reduced under Act s 45B (s 15(2)). Ensure the debt account records all charges, early release amounts, interest (s 18(5)), and repayments.
Produce and dispatch annual debt account statements to each contributor and former contributor (s 16(a)), and include TFN requests if none on file (s 16(b)).
Notification and timing systems for family law matters:
Implement workflows to detect operative times for payment splits and receipt dates of splitting orders and to trigger notices within 28 days as required (s 24(2)).
Prepare standard form notices that specify the estimated entitlement, calculation method, payment period and estimated effect on the contributor (s 24(3)), and notices for non-contributor spouses with the required content and response obligations (s 24(4)).
Monitor the 60-day response window for non-contributor spouses and execute transfers/rollovers to nominated funds within 30 days (s 25(2)) or, absent nomination, default to the Aware Super Fund (s 24(4)(c), s 25(2)).
Calculation controls and actuarial processes:
For tax-related reductions, implement the prescribed formulae in ss 6-11 and validate inputs: accrued benefit points, days of continuous contributory service, final average salary/final salary, contributor-financed amounts, contributed points, discount factors, and n (years to early retirement age) where applicable.
Procure actuarial advice where required: s 13(2) permits STC to obtain actuarial advice for further reductions; the Act requires actuarial advice for s 45B (s 15 note); s 18(6) and s 26(6) indicate actuarial advice for early-release and family-law reductions. Use formally engaged actuaries and retain written advice as part of the decision record.
Early-release consent and debt-account interactions:
Obtain written consent from contributor or former contributor before releasing an early release benefit that will reduce future benefits (s 19).
If early release occurs and subsection (2) of s 18 applies, calculate and reduce the deferred/preserved lump sum accordingly (s 18(2)). Otherwise, create/debit the debt account and apply reductions when benefits become payable (s 18(3)-(5)). Clearly document interest rates set under s 18(5).
Administer surcharge-related requests and reimbursements:
Where a former contributor requests STC to reduce benefits to pay additional surcharge amounts, follow the s 13 process: reduce by the lesser of the additional surcharge amount and the available surcharge deduction cap after previously met liability (s 13(1)(a)-(b)). Keep records of previously met surcharge liability per s 13(4).
Where a former contributor overpays the Commissioner beyond the surcharge deduction cap, apply s 47 reimbursement or payment-on-behalf mechanics and compute reimbursements per s 47(3). Adopt a published “reasonable period” policy to deal with the limited availability of interest payments under ss 13(3)(b), 47(4).
Salary-loading administration:
For contributors receiving shift allowances, compute the contributor’s loading via the chosen method (s 42) and apply the formula in s 43(2) to determine N; then map N to the percentage table at s 43(3). Maintain historical hours-per-shift records (H and H0) and shift-count records (S) for the relevant period (s 43).
Check for pre-1987 agreements that treat allowances as loading for superannuation purposes (s 44), and if actual shift payments are less than the formula loading, apply s 45.
Consent and data-sharing protocols for specific employee groups:
For firefighters, police and ambulance officers, obtain explicit employee consent before sharing personal information with employer agencies or trustees as permitted (ss 30, 34, 38). Implement consent forms and retention protocols tied to the authorised recipients and purposes.
For transfers to the Death and Disability Superannuation Fund, secure firefighter consent before transferring the required offset amount (s 33).
Document policy on discretionary matters:
Provide a clear, public (or at least auditable) STC policy that defines the “reasonable period” for requests relating to payment of general interest in s 13(3)(b)(ii) and s 47(4)(b), and publish interest-setting criteria for debt accounts (s 18(5)). This reduces legal challenge risk.
Maintain record-keeping and audit trails:
Retain evidence of consent for early releases (s 19), copies of all actuarial advice, notices sent under family-law clauses (s 24), annual debt statements (s 16), calculations for benefit reductions with formula inputs and outputs, and records of transfers/rollovers (s 25(2)-(3)). These records support defence against disputes and are necessary for actuarial and audit review.
Reconcile with federal instruments and monitor changes:
Regularly review the Commonwealth approved valuation method and family law instruments referenced in s 22, and ensure valuation practice aligns.
Track changes to federal taxation law and Commissioner practice that affect surcharge assessments, interest calculations and collection methods.
Training and governance:
Train front-line staff and trustees in the operation of the prescribed formulae and notice requirements. Establish escalation procedures where actuarial input is required or where a contributor disputes calculations.
Ensure legal oversight of policy decisions, particularly where the regulation allows STC to “may” obtain advice or exercise discretion.
Confirm transitional status and previously made elections:
Check for transferred contributors covered by the 1988 and 1989 transitional regulations (ss 10-11). Identify contributors who made earlier relinquishment elections under prior regulations (ss 32(3), 36(4), 40(4)) and ensure their current coverage status reflects those elections.
By implementing the items above, STC and advisers will operationally align with the regulation’s requirements. Key operational priorities are precise data capture (service days, accrued points, salary bases, shift hours), robust actuarial engagement, timely notices, and clear internal policies for discretionary items such as “reasonable period” and interest-setting.
Division 1Reductions relating to tax liabilities—the Act, s 45A
the Act means the State Authorities Superannuation Act 1987.
total surcharge amount, in relation to a former contributor, means the sum of the following—
(a) the total superannuation contributions surcharge that has been 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 that notice,
(c) the interest payable for the surcharge debt account, within the meaning of the Act, section 45A, kept in relation to the former contributor.
Note 1—
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
Note 2—
See the Act, sections 3 and 36 for definitions that apply to this regulation.
Part 2 Reduction of benefits
Part 2 Reduction of benefits
Part 2 Reduction of benefits
Division 1 Reductions relating to tax liabilities—the Act, s 45A
Division 1 Reductions relating to tax liabilities—the Act, s 45A
Division 1 Reductions relating to tax liabilities—the Act, s 45A
4 Definitions
4 Definitions
4 Definitions
In this part—
continuous contributory service, for a contributor, means the period beginning on the contributor’s entry date and ending on the contributor’s exit date.
taxable date means the date from which STC is liable to pay income tax under a Commonwealth taxation law for employer contributions to the Fund.
5 Prescribed benefits
5 Prescribed benefits
5 Prescribed benefits
(1) For the Act, section 45A(2)(a), the benefits provided under the following provisions of the Act are prescribed—
(a) section 37,
(b) section 39,
(c) section 40,
(d) section 41,
(e) section 42,
(f) section 43.
(2) Despite subsection (1), a benefit arising as a result of the death of a person must not be reduced by STC to offset tax liabilities of the Fund except as provided by section 10.
6 Reduction for the Act, section 37
6 Reduction for the Act, section 37
6 Reduction for the Act, section 37
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 37—
where—
R is the amount of the reduction.
A is the accrued benefit points for the contributor at the contributor’s exit date.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the contributor.
F is the contributor’s final average salary.
(2) This section does not apply to a benefit arising as a result of the death of a contributor.
7 Reduction for the Act, sections 39, 40 and 42
7 Reduction for the Act, sections 39, 40 and 42
7 Reduction for the Act, sections 39, 40 and 42
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 39, 40 or 42—
where—
R is the amount of the reduction.
A is the accrued benefit points for the contributor at the contributor’s exit date.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the contributor.
S is the contributor’s final salary.
8 Reduction for the Act, section 41
8 Reduction for the Act, section 41
8 Reduction for the Act, section 41
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 41—
where—
R is the amount of the reduction.
T is the period in years, with a fractional part of a year being calculated based on complete contribution periods, that commenced on the most recent of the taxable date or the contributor’s entry date and ended on the contributor’s exit date.
C is the amount of the contributor-financed benefit payable under the Act, section 41(2)(a).
A is the accrued benefit points for the contributor at the contributor’s exit date.
Y is the sum of the contributor’s contributed points figures calculated in relation to the contributor for the applicable contribution periods.
(2) This section does not apply to a benefit if the contributor’s period of continuous contributory service is less than 10 years.
9 Reduction for the Act, section 43
9 Reduction for the Act, section 43
9 Reduction for the Act, section 43
(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit if a contributor elects to provide for a deferred benefit under the Act, section 43—
where—
R is the amount of the reduction.
A is the accrued benefit points for the contributor at the contributor’s exit date.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the contributor.
F is the contributor’s final average salary.
K is the discount factor determined by STC for the Act, section 43(6)(b).
n is the period expressed in years between the contributor’s age at the contributor’s exit date and the early retirement age, with a fractional part of a year being calculated on the basis of complete contribution periods.
10 Reduction for transferred contributor under 1988 regulation
10 Reduction for transferred contributor under 1988 regulation
10 Reduction for transferred contributor under 1988 regulation
(1) This section applies to a transferred contributor within the meaning of the State Authorities Superannuation (Transitional Provisions) Regulation 1988 (the 1988 regulation).
(2) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a pension benefit for a transferred contributor, or other eligible person, who elects to take a pension benefit under the 1988 regulation, clause 38—
where—
R is the amount of the reduction.
B is the period in days of continuous contributory service that began on the taxable date.
C is the period in days of continuous contributory service for the transferred contributor concerned.
P is—
(a) if the transferred contributor is dead—the proportion of the pension that is attributable to accrued benefit points and that, but for this section, would be payable under the 1988 regulation, clause 44, to the spouse or de facto partner of the contributor, or
(b) otherwise—the proportion of the pension that is attributable to accrued benefit points and that, but for this section, would be payable to the transferred contributor under the 1988 regulation, clause 40, 41, 42 or 43.
(3) If a transferred contributor or other person referred to in subsection (2) elects to convert to a pension benefit only a portion of the benefit points of the transferred contributor, the benefit to be derived from the benefit points remaining after conversion must be reduced in accordance with the provisions of this part that apply to the benefit.
11 Reduction for transferred contributor under 1989 regulation
11 Reduction for transferred contributor under 1989 regulation
11 Reduction for transferred contributor under 1989 regulation
(1) This section applies to a transferred contributor within the meaning of the State Authorities Superannuation (State Public Service Superannuation Scheme Transfer) (Savings and Transitional) Regulation 1989.
(2) For the Act, section 45A(2)(b), if the benefit of a transferred contributor is reduced in accordance with a formula set out in section 6, 7 or 9, the multiple “0.025” in the formula must be read as “0.03”.
12 Reduction for superannuation contributions surcharge
12 Reduction for superannuation contributions surcharge
12 Reduction for superannuation contributions surcharge
For the Act, section 45A(3), the benefits provided under the following provisions of the Act are prescribed—
(a) section 37,
(b) section 38,
(c) section 39,
(d) section 40,
(e) section 41,
(f) section 42,
(g) section 43.
13 Further reduction for superannuation contributions surcharge
13 Further reduction for superannuation contributions surcharge
13 Further reduction for superannuation contributions surcharge
(1) For the Act, section 45A(6)(b), STC may, at the request of a former contributor—
(a) reduce the amount of the former contributor’s benefit by the lesser of—
(i) the additional surcharge amount for the former contributor, or
(ii) the amount, not being less than $0, that is equal to the amount of the surcharge deduction cap after deducting any previously met surcharge liability, and
(b) pay the amount by which the benefit is reduced to—
(i) the former contributor, or
(ii) the Commissioner of Taxation.
(2) STC may obtain actuarial advice for the purposes of determining the amount by which the former contributor’s benefit is to be reduced.
(3) This section does not authorise STC to pay—
(a) 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, or
(b) an amount of general interest charged in relation to an additional surcharge amount payable under a post payment surcharge assessment notice, unless—
(i) the request for the payment is made by the former contributor, and
(ii) the request is made within a reasonable period after receiving the notice, as determined by STC.
(4) 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 of the benefit of the former contributor have previously been made under this section or the Act in relation to the superannuation contributions surcharge.
14 Maximum surcharge deduction amount
14 Maximum surcharge deduction amount
14 Maximum surcharge deduction amount
For the Act, section 45A(1C), the following amounts are prescribed—
(a) for a benefit payable to a contributor or former contributor that accrued after 20 August 1996 and before 1 July 2003—15%,
(b) for a benefit payable to a contributor or former contributor that accrued on or after 1 July 2003 and before 1 July 2004—14.5%,
(c) for a benefit payable to a contributor or former contributor that accrued on or after 1 July 2004 and before 1 July 2005—12.5%.
Division 2 Reductions relating to no-TFN tax—the Act, s 45B
Division 2 Reductions relating to no-TFN tax—the Act, s 45B
Division 2 Reductions relating to no-TFN tax—the Act, s 45B
15 Reductions relating to no-TFN tax
15 Reductions relating to no-TFN tax
15 Reductions relating to no-TFN tax
(1) For the Act, section 45B(1)(d), the benefits provided under the following provisions of the Act are prescribed—
(a) section 37,
(b) section 38,
(c) section 39,
(d) section 40,
(e) section 41,
(f) section 42,
(g) section 43.
(2) STC must create a debt account in the Fund for each contributor or former contributor for whom a benefit is liable to be reduced under the Act, section 45B.
(3) STC must consider the debt account when determining the amount of the reduced benefit.
Note—
Under the Act, section 45B(3), STC must obtain actuarial advice before determining the amount of the reduced benefit.
16 Provision of information
16 Provision of information
16 Provision of information
STC must, at least once a year—
(a) give each contributor and former contributor a statement of the balance of the debt account created by STC for the contributor or former contributor, and
(b) if a tax file number has not previously been given—request that the contributor or former contributor give STC the number.
Division 3 Reductions relating to early release of benefits—the Act, s 43D
Division 3 Reductions relating to early release of be
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