Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2003
Family Law (Superannuation) Regulations 2001
I, PETER COLIN MARTIN, Australian Government Actuary:
(a) revoke the Determination made by me on 25 June 2003 under subregulation 45D (4) of the Family Law (Superannuation) Regulations 2001, as in force on 2 September 2003, and published in Gazette No. S 224 on 27 June 2003; and
(b) acting under subregulation 45D (3) of the Family Law (Superannuation) Regulations 2001, determine that the interest rate for the adjustment period, being the financial year beginning on 1 July 2003, is 0.071; and
(c) acting under subregulation 45D (4) of the Family Law (Superannuation) Regulations 2001, determine that the method set out in Schedule 1 is the method for calculating the interest rate for an adjustment period of less than 12 months that begins and ends in the financial year beginning on 1 July 2003; and
(d) acting under subregulation 45D (6) of the Family Law (Superannuation) Regulations 2001:
(i) determine, for the purposes of subparagraph 45D (5) (b) (i) of those Regulations, that the method set out in Schedule 2 is the method for calculating the interest rate for an adjustment period of exactly 12 months beginning before 30 June in the financial year ending on 30 June 2003 and ending in the next financial year; and
(ii) determine, for the purposes of subparagraph 45D (5) (b) (ii) of those Regulations, that the method set out in Schedule 1 is the method for calculating the interest rate for an adjustment period of less than 12 months beginning before 30 June in the financial year ending on 30 June 2003 and ending in the next financial year.
This Determination is taken to have commenced on 3 September 2003.
Dated 29 September 2003
PETER COLIN MARTIN
Australian Government Actuary
Schedule 1 Method — Adjustment period of less than 12 months
(paragraph (c) and subparagraph (d) (ii))
The method for calculating the interest rate for the adjustment period is:
where:
d1 is the number of days in the adjustment period between 28 December 2002 and 30 June 2003 (inclusive).
d2 is the number of days in the adjustment period after 30 June 2003.
Schedule 2 Method — Adjustment period of exactly 12 months
(subparagraph (d) (i))
The method for calculating the interest rate for the adjustment period is:
where:
d1 is the number of days in the adjustment period between 28 December 2002 and 30 June 2003 (inclusive).
d2 is the number of days in the adjustment period after 30 June 2003.
Overview
The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2003 was introduced to rectify inconsistencies in the calculation of interest rates for superannuation interests in the context of family law matters. This legislative instrument, enacted in 2003, was authorised by the Australian Government Actuary, Peter Colin Martin, to ensure that the interest rates applied to superannuation interests in family law cases are calculated accurately and consistently. The determination aims to provide clear guidelines for the calculation of interest rates for adjustment periods, ensuring that the financial implications of family law decisions are equitable and transparent. This was achieved by revoking a previous determination and setting new rates and calculation methods, which are detailed in the accompanying schedules.
Scope and Application
The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2003 pertains to the calculation of interest rates for adjustment periods in the context of family law matters, particularly as they relate to superannuation. It applies to entities and individuals involved in family law proceedings in Australia, where superannuation assets may be subject to adjustment for financial settlements. The regulation specifies the interest rates for different adjustment periods within a financial year, impacting the calculation of interest on superannuation benefits during and after divorce or separation. The determination sets out methods for calculating interest rates for adjustment periods of less than 12 months and exactly 12 months, with these methods being outlined in Schedules 1 and 2 respectively. The application of this legislation is across the Commonwealth of Australia, with no exclusions or exemptions specified within the text. The regulation extends its application through subordinate instruments, which include the Family Law (Superannuation) Regulations 2001.
Key Provisions
The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2003, made by the Australian Government Actuary, Peter Colin Martin, revokes the previous Determination of 25 June 2003 and introduces new interest rate calculations for adjustment periods starting from 1 July 2003. The Determination specifies the interest rate for the financial year beginning on 1 July 2003 as 0.071 (subregulation 45D(3)). For periods less than 12 months that begin and end within this financial year, the method for calculating the interest rate is detailed in Schedule 1 (subregulation 45D(4)). This method involves calculating the interest rate based on the number of days in the adjustment period between 28 December 2002 and 30 June 2003 and the number of days after 30 June 2003.
The Determination also sets out the calculation method for adjustment periods of exactly 12 months beginning before 30 June in the financial year ending on 30 June 2003 and ending in the next financial year. This is governed by Schedule 2 (subregulation 45D(5)(b)(i)) and involves a similar calculation based on the number of days in the adjustment period. For adjustment periods of less than 12 months that start before 30 June in the financial year ending on 30 June 2003 and end in the next financial year, the method is detailed in Schedule 1 (subregulation 45D(5)(b)(ii)).
The obligations imposed by this Determination are primarily on the Australian Government Actuary, who must ensure the correct application of the specified interest rates and calculation methods for relevant adjustment periods. Parties involved in family law matters that affect superannuation must adhere to these rates and methods when calculating adjustments related to superannuation interests.
There are no specific offences or penalties outlined in this Determination. However, any failure to comply with the specified interest rates and calculation methods could potentially lead to disputes or legal challenges in family law proceedings concerning superannuation interests. It is essential that all parties involved follow the prescribed methods to avoid any potential legal complications.