(1) This section applies only in relation to defined benefit superannuation schemes.
(a) a benefit certificate in relation to one or more complying superannuation schemes has effect for the whole or part of a quarter; and
(b) a scheme in relation to which the certificate has effect is operating for the benefit of a person as an employee of an employer; and
(c) the certificate specifies a figure as the notional employer contribution rate in relation to a class of employees (being a class that includes the employee referred to in paragraph (b)) as members of the scheme or schemes (as the case may be);
the charge percentage for the employer, as specified in subsection 19(2), in respect of an employee in the class for the quarter, is reduced, in addition to any other such reduction made under this section or section 23, by the amount worked out using the formula:
"A" is the figure referred to in paragraph (c).
(A) 1; or
(B) if, in relation to the quarter, the employment period is greater than the scheme membership period or the certificate period--either the fraction that represents the scheme membership period as a proportion of the employment period or the fraction that represents the certificate period as a proportion of the employment period or, if one fraction is smaller than the other, the smaller fraction.
(3) For the purposes of subsection (2):
"the certificate period" means the period, or the aggregate of the periods, in the quarter for which the benefit certificate has effect in relation to the scheme.
"the employment period" means the period, or the aggregate of the periods, in the quarter for which the employee is employed by the employer.
the scheme membership period means the period, or the aggregate of the periods, in the quarter for which the employee is a member of the superannuation scheme.
(4) The charge percentage for an employer for a quarter cannot be reduced below 0.
(5) For the purposes of a calculation under this section in relation to an employer and an employee:
(a) a period of leave of absence without pay granted by the employer to the employee is not to be taken into account as a period for which the employee is employed by the employer; and
(b) a benefit certificate is taken not to have effect in relation to the employee in respect of such a period.