Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2004

Overview

The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2004 was enacted to provide clarity and consistency in the calculation of interest rates for superannuation adjustments in the context of family law matters. This legislative instrument, made under the authority of the Family Law (Superannuation) Regulations 2001, was introduced to address the need for specific and precise methods for determining interest rates applicable to superannuation interests over certain periods, particularly where the adjustment period spans two financial years. The determination was made by Peter Colin Martin, the Australian Government Actuary, and it outlines the interest rate for the financial year beginning on 1 July 2004, as well as the methods for calculating interest rates for adjustment periods that are less than or equal to 12 months, where the period straddles two financial years. The commencement of this Determination on 1 July 2004 ensured timely application to the relevant financial year, reflecting the policy objective of providing clear and structured financial calculations in family law superannuation matters.

Scope and Application

The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2004 applies to the calculation of interest rates for adjustment periods relevant to superannuation interests in the context of family law matters in Australia. This Determination is made under the authority of subregulations 45D(3), 45D(4), and 45D(6) of the Family Law (Superannuation) Regulations 2001. It specifically sets out the interest rates and methods for calculating those rates for adjustment periods that either begin and end within the 2004-05 financial year or straddle the 2003-04 and 2004-05 financial years. The Determination is effective from 1 July 2004 and applies to financial periods as delineated in the accompanying schedules, which provide detailed methods for calculating interest rates based on the duration of the adjustment periods.

Key Provisions

The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2004 establishes the interest rate for certain periods related to superannuation adjustment periods. Section 1(a) sets the interest rate for the financial year beginning on 1 July 2004 at 0.078. Section 1(b) specifies the method for calculating the interest rate for an adjustment period of less than 12 months that begins and ends in the 2004–05 financial year, as outlined in Schedule 1. Section 1(c)(i) details the method for calculating the interest rate for an adjustment period of exactly 12 months beginning before 30 June in the 2003–04 financial year and ending in the 2004–05 financial year, as outlined in Schedule 2. Section 1(c)(ii) provides the method for calculating the interest rate for an adjustment period of less than 12 months beginning before 30 June in the 2003–04 financial year and ending in the 2004–05 financial year, as detailed in Schedule 3. The obligations imposed by this Determination are primarily on the Australian Government Actuary, who is responsible for determining the interest rates and methods of calculation for the specified periods. This includes adhering to the specific calculations outlined in the schedules and ensuring that the rates are applied correctly. The Determination does not impose direct obligations on other parties but sets the parameters within which calculations must be made. There are no explicit offences or penalties outlined in this Determination. However, any failure to comply with the stipulated interest rates and calculation methods could potentially lead to incorrect financial assessments or superannuation calculations. While the Determination itself does not prescribe specific penalties for non-compliance, any resulting errors could have legal or financial repercussions in related legal proceedings or administrative processes governed by the Family Law (Superannuation) Regulations 2001.