71BTaxation on benefits

71B Taxation on benefits

actuary means a person who is—

(a) a fellow or an accredited member of the Institute of Actuaries of Australia; and

(b) approved by the Minister; and

(c) appointed by the Board as the actuary for the purpose of this section;

affected member means in relation to a benefit reduction under subsection (2) or (3) a person who is a member of the Fund immediately before the date from which that reduction commences to apply;

after-tax benefit means the amount of benefit after allowing for income tax calculated at the rates and in the manner as at the date of commencement of section 86 of the Public Sector Superannuation (Administration) Act 1993 applicable to a person aged 55 years or more;

detriment means receiving a lesser amount of after-tax benefit than would have been received if the benefit—

(a) had not been reduced in accordance with subsections (2) and (3); and

(b) had been an untaxed benefit;

S. 71B(1)
def. of
post-June 1983 component amended by No. 120/1994
s. 65(c).

post-June 1983 component has the same meaning as in section 27A of the tax law;

rebatable 27H amount has the same meaning as in section 159SJ of the tax law;

tax law means the Commonwealth Income Tax Assessment Act 1936;

taxed element has the same meaning as in section 27A of the tax law;

taxed in respect of a benefit means a benefit in relation to which there is a taxed element or a rebatable 27H amount as the case may be;

untaxed in respect of a benefit means a benefit in relation to which there is no taxed element or rebatable 27H amount as the case may be.

(2) If before the commencement of section 86 of the Public Sector Superannuation (Administration) Act 1993 the Board determined that any part of the post-June 1983 component of a benefit paid or payable to a member of the Fund was to be classified for the purposes of the tax law as taxed, then the benefits accruing in respect of members of the Fund in relation to the period after 1 July 1993 (and any relevant maximum benefit) must be reduced on the basis determined by an actuary and approved by the Minister.