EXPLANATORY STATEMENT
FAMILY LAW (SUPERANNUATION) (METHODS AND FACTORS FOR VALUING PARTICULAR SUPERANNUATION INTERESTS) AMENDMENT APPROVAL 2008 (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, amends the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003 (the 2003 Approval).
The 2003 Approval contains methods for valuing superannuation interests held by parties to a marriage for the purpose of the provisions of the Family Law Act 1975 enabling superannuation to be split in property settlements on marriage breakdown.
Methods were approved in 2004 for valuing superannuation interests held by parties to a marriage in the Commonwealth Superannuation Scheme and, in 2004 and 2005, in the Public Sector Superannuation Scheme.
The amendments made by the Attorney-General in this instrument reflect changes made:
- by Schedule 3 to the Superannuation Legislation Amendment Act 2007 to the Superannuation Act 1976 (relating to the Commonwealth Superannuation Scheme), and
- by the Twenty-ninth and Thirtieth Amending Deeds, made on 28 August 2007 and 19 December 2007 respectively, to the Trust Deed to establish the Public Sector Superannuation Scheme
enabling members of Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme to obtain early release of benefits.
Under these changes, members of each scheme may obtain early release of lump sums from their funded account balances, on compassionate or severe financial hardship grounds, to the extent allowed under the Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Regulations 1994.
The instrument adjusts the methods that have been approved for valuing superannuation interests held by:
- public servants and former public servants with preserved benefits in each scheme
- former public servants in the Commonwealth Superannuation Scheme who have qualified for, but not yet taken up, their entitlement to a retirement pension, and
- persons in the Commonwealth Superannuation Scheme who were public servants at the time when the organisation in which they worked was sold or whose functions were outsourced
to provide that, where a lump sum has been released early in respect of an interest, the amount of the lump sum released, and interest to the date of valuation, is deducted from the value of the interest.
The instrument incorporates by reference the Superannuation Act 1976, which makes provision in relation to the Commonwealth Superannuation Scheme. The Act can be viewed at the following website:
http://www.comlaw.gov.au/ComLaw/Legislation/ActCompilation1.nsf/current/bytitle/B3B93C3E0F24A6E6CA25736F0019CFEE?OpenDocument&mostrecent=1
A copy of the Act may be purchased from CanPrint Communicatons Pty Ltd, PO Box 7456, Canberra MC ACT 2610 (telephone:1300 656 863).
Consultation on the content of the instrument was undertaken under section 17 of the Legislative Instruments Act 2003 with the Australian Government Actuary, the Department of Finance and Deregulation and Commonwealth Superannuation Administration (ComSuper) by way of exchange of correspondence, discussions and a meeting (involving the Australian Government Actuary’s office, the Department of Finance and Deregulation and the Attorney-General’s Department).