EXPLANATORY STATEMENT
FAMILY LAW (SUPERANNUATION) (METHODS AND FACTORS FOR VALUING PARTICULAR SUPERANNUATION INTERESTS) AMENDMENT APPROVAL 2006 (No. 1)
ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL
In this instrument, the Attorney-General, under regulation 38 of the Family Law (Superannuation) Regulations 2001, approves in writing, for the purpose of the provisions in the Family Law Act 1975 (the Act) allowing superannuation to be split on marriage breakdown, methods for determining the gross value of superannuation interests held by local government employees in Queensland who are defined benefit Members of the Queensland Local Government Superannuation Scheme (the Scheme).
The gross value is one element in the determination of an amount which is taken to be the value of superannuation in property settlement proceedings under the Act.
Three methods are approved for interests held by defined benefit Members in the Scheme, which each depend on the age of the Member at the time when the gross value of the interest is determined.
The method approved for an interest held by a defined benefit Member who is less than 55 years of age at the time when the gross value of the interest is determined is the value of the benefit that would be payable to the Member if he or she were to resign as a Queensland local government employee at that time.
The method approved for an interest held by a defined benefit Member who is aged 55 years, or aged between 55 and 70 years, at the time when the gross value of the interest is determined is the value of the benefit that would be payable to the Member if he or she were to retire at that time.
The method approved for an interest held by a defined benefit Member who is aged 70 years or more at the time when the gross value of the interest is determined is the value of the benefit that would be payable to the Member if he or she were to cease employment at that time.
The instrument incorporates by reference the Trust Deed made on 23 June 1998 by the Queensland Local Government Superannuation Board, as amended. The Trust Deed contains the rules governing the operation of the Scheme. A copy of the Trust Deed can be obtained from LG Super, at Level 10, 10 Market Street, Brisbane, Queensland 4000 (Telephone: 07 3244 4300).
The instrument also refers to the Local Government Act 1993 (Qld) which may be viewed at the following website:
http://www.legislation.qld.gov.au/LEGISLTN/CURRENT/L/LocGovA93_009_R.pdf
A copy of that Act may also be purchased from Goprint, through its bookshop, which is located at 371 Vulture Street, Woolloongabba, Queensland 4102 (Telephone: 07 3246 3399).
Consultation on the content of the instrument was undertaken under section 17 of the Legislative Instruments Act 2003 with the Australian Government Actuary, Sunsuper Financial Services Pty Ltd (the actuaries for the Queensland Local Government Superannuation Scheme) and the Queensland Local Government Superannuation Board, the trustee of the Queensland Local Government Superannuation Scheme, by way of exchange of correspondence and discussions.
Overview
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2006 (No. 1) was enacted to address the specific valuation methods required for superannuation interests held by defined benefit Members of the Queensland Local Government Superannuation Scheme, particularly in the context of property settlements under the Family Law Act 1975. This instrument was approved by the Attorney-General, pursuant to regulation 38 of the Family Law (Superannuation) Regulations 2001, and provides methods for determining the gross value of superannuation interests for defined benefit Members based on their age at the time of valuation. This ensures that the superannuation interests are accurately valued for the purposes of property settlements, thereby addressing a gap in the valuation methodology for defined benefit superannuation interests within the Queensland Local Government Superannuation Scheme.
Scope and Application
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2006 (No. 1) applies to the superannuation interests of local government employees in Queensland who are defined benefit members of the Queensland Local Government Superannuation Scheme. The instrument specifies the methods for determining the gross value of these superannuation interests in the context of property settlement proceedings under the Family Law Act 1975. The approved methods vary based on the age of the member at the time the gross value is determined, providing specific valuation methods for members under 55, those aged 55 to 70, and those aged 70 or older. This approval extends to the application of the Trust Deed governing the Scheme, which is incorporated by reference in the instrument, ensuring that the methods align with the rules set out in the Trust Deed. Additionally, the Local Government Act 1993 (Qld) is referenced, indicating the jurisdictional context and legislative framework within which the Scheme operates.
Key Provisions
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2006 (No. 1) (F2006L00897) outlines the approved methods for determining the gross value of superannuation interests held by defined benefit Members of the Queensland Local Government Superannuation Scheme (QLGS) during property settlement proceedings under the Family Law Act 1975 (Cth) (section 1(1)). The approved methods vary based on the age of the Member at the time the gross value is determined. For Members under 55 years of age, the gross value is determined by the benefit that would be payable if they resigned as a local government employee (section 1(2)(a)). For Members aged 55 or older, the gross value is determined by the benefit that would be payable if they retired (section 1(2)(b) and (c)). This approval incorporates the Trust Deed of the QLGS made on 23 June 1998, as amended, and references the Local Government Act 1993 (Qld) to ensure the methods align with the Scheme’s rules and legislative framework.
The Act imposes specific obligations on the parties involved in property settlement proceedings concerning superannuation interests. It mandates that the gross value of the superannuation interest be determined using one of the three approved methods, depending on the Member's age at the time of valuation. The approved methods ensure consistency and fairness in the valuation process, thereby protecting the interests of the parties. Additionally, the Act requires that the relevant superannuation interest be accurately identified and that the calculations be performed in accordance with the approved methods, ensuring transparency and accuracy in the valuation.
Breach of the provisions outlined in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2006 (No. 1) can result in significant legal consequences. Although the explanatory statement does not specify particular offences or penalties, breaches of the Family Law Act 1975 can lead to civil and criminal penalties, including fines and imprisonment. For instance, under section 121 of the Family Law Act, a person who provides false or misleading information in family law proceedings can be subject to a penalty of up to five years imprisonment. Furthermore, any misuse of superannuation information or failure to comply with the approved valuation methods can result in legal actions for damages or other civil remedies.