Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (1AAA), a reference in this Division to a transfer value in relation to an eligible employee is a reference to:
(a) a lump sum benefit ( a paragraph (a) benefit ):
(i) payable in relation to an eligible employee under a superannuation scheme on the termination of employment or cessation of membership otherwise than on the ground of physical or mental incapacity to perform that employment; and
(ii) based wholly on contributions by the employer under the scheme or partly on such contributions and partly on contributions by the eligible employee under the scheme;
unless that benefit has been applied for the purchase of a deferred annuity or paid into a preservation fund; or
(b) an amount payable to or in relation to the eligible employee on surrender of a deferred annuity if a paragraph (a) benefit had been applied for the purchase of that annuity; or
(c) an amount payable to or in relation to the eligible employee if that amount is payable from a preservation fund in relation to a paragraph (a) benefit paid to the fund for the benefit of the eligible employee; or
(d) an amount payable to, or in relation to, the eligible employee in accordance with Part 8 of the Superannuation Guarantee (Administration) Act 1992 .
(1AAA) In this Division, a reference to a transfer value in relation to an eligible employee does not include a reference to any part of a lump sum benefit payable under a superannuation scheme that is based on contributions by the employee under the scheme that are of a similar nature to supplementary contributions under this Act or to contributions under the superseded Act for reserve units of pension.
(1AA) For the purposes of subsection (1), an amount that is a productivity related benefit within the meaning of Part VIA is not to be treated as a transfer value if the productivity related benefit would be the whole of the transfer value.
(2) If, after a transfer value became payable to or in respect of a person under a superannuation scheme, an amount equal to the whole or any part of that transfer value was paid to a person administering another superannuation scheme (not being the scheme constituted by the provisions of this Act):
(a) where the whole of the transfer value was so paid--that transfer value shall be disregarded for the purposes of this Division; or
(b) where part of the transfer value was so paid--the amount of that transfer value shall be deemed for the purposes of this Division, to be reduced by the amount so paid.
(3) Subject to subsection (4), a transfer value shall be deemed, for the purposes of this Division, to have become payable in respect of a person under a superannuation scheme upon the termination of any employment if, upon the termination of that employment, the person was the owner of a life policy, or was entitled to have the rights of the owner of a life policy assigned to him or her, being a policy the premiums for which were, while the person was employed in that employment, paid in whole or in part by the person's employer, and, in that case, the surrender value of the policy as at the date of the termination of the employment shall be taken to be the amount of the transfer value.
(4) Where a transfer value is, by virtue of subsection (3), to be deemed, for the purposes of this Division, to have become payable in respect of a person upon the termination of any employment by reason that, upon the termination of that employment, the person was the owner of a life policy, or was entitled to have the rights of the owner of a life policy assigned to him or her, a transfer value shall not be deemed, for those purposes, to have become payable in respect of the person upon the termination of any previous employment by reason that, upon the termination of that previous employment, the person was the owner of that policy, or was entitled to have the rights of the owner of that policy assigned to him or her.