(1)  For the purposes of taxation of superannuation contributions under the law of the Commonwealth, the Commission is to treat –

(a) as concessional contributions all employer contributions; and

(b) as concessional contributions all member contributions which have been included in the assessable income of the TASS Fund; and

(c) as non-concessional contributions all member contributions which have not been included in the assessable income of the TASS Fund; and

(d) as assessable income of the TASS Fund the element untaxed in the fund of roll-over superannuation benefits; and

(e) as assessable income of the TASS Fund the element untaxed in the fund of transferred superannuation benefits.

(2)  The Commission, having regard to the law of the Commonwealth, must –

(a) establish and maintain policies and administrative procedures with respect to the taxation of superannuation contributions and superannuation benefits; and

(b) determine, from time to time –

(i) the proportion of a superannuation benefit that is to be treated by the Commission as an element untaxed in the fund for the purposes of the Income Tax Assessment Act 1997 of the Commonwealth; and

(ii) the proportion of a superannuation benefit that is to be treated by the Commission as an element taxed in the fund for the purposes of the Income Tax Assessment Act 1997 of the Commonwealth; and

(iii) the proportion of a superannuation benefit that is to be treated by the Commission as the tax free component for the purposes of the Income Tax Assessment Act 1997 of the Commonwealth.

(3)  The Commission, in accordance with the law of the Commonwealth, must deduct from roll-over superannuation benefits, superannuation contributions and superannuation benefits all amounts required to be paid as taxation under the law of the Commonwealth and remit those amounts to the Taxation Commissioner.

(4)  A benefit payable under these regulations is to be reduced in accordance with regulation 149(12) at the time of payment by the Commission.