Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

The Superannuation Contributions Tax (Application to the Commonwealth u2014 Reduction of Benefits) Act 1997 is a law that allows the trustee of an unfunded defined benefits superannuation scheme to reduce the benefits payable to a member if the trustee has a liability to pay the superannuation contributions surcharge. The law provides for a reduction of benefits by up to 15% of the employer-financed component of the benefits payable to the member, and sets out various factors that the trustee must consider when determining the amount of the reduction.

The law was enacted to address the issue of superannuation contributions tax (also known as the "surcharge") imposed on superannuation funds. The surcharge was introduced to encourage employers to contribute more to their employees' superannuation funds, but it was later abolished.

The law is part of a package of measures aimed at improving the superannuation system and encouraging greater employer contributions to superannuation funds.