EXPLANATORY STATEMENT
FAMILY LAW (SUPERANNUATION) (METHODS AND FACTORS FOR VALUING PARTICULAR SUPERANNUATION INTERESTS) AMENDMENT APPROVAL 2008 (No.2)
ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL
In this instrument the Attorney-General amends the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003 (the Valuation Approval) to reflect successor fund arrangements for superannuation interests in the Parliamentary Contributory Superannuation Fund of Queensland (the Queensland Parliamentary Scheme).
The Valuation 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 2005 for valuing, for that purpose, superannuation interests held by members of the Queensland Legislative Assembly, with at least eight years service as such a member, in the Queensland Parliamentary Scheme.
The Queensland Parliamentary Scheme was discontinued by the Superannuation (State Public Sector) Amendment Act 2007 (Qld) (the 2007 Amendment Act). Members of the Queensland Legislative Assembly have had their rights and entitlements to superannuation under the discontinued Queensland Parliamentary Scheme maintained as members in the parliament 70 category under Chapter 9 of the Superannuation (State Public Sector) Deed 1990 (Qld) (the QSuper Deed). These rights and entitlements were maintained by replicating the provisions of the Parliamentary Contributory Superannuation Act 1970 (Qld), repealed by the 2007 Amendment Act, in Chapter 9 of the QSuper Deed.
The amendments made by the instrument relocate the provisions relating to the methods approved for the discontinued Scheme in 2005 from Part 2 to Part 1 of Schedule 4 of the Valuation Approval. Part 1 of Schedule 4 of the Valuation Approval sets out other methods, approved in 2003 and 2004, for superannuation interests in the QSuper, the superannuation scheme governed by the QSuper Deed.
In relocating the provisions, formal amendments have been made to reflect that the superannuation interests held by Queensland Legislative Assembly members are now held in QSuper. Some drafting amendments have also been made, as part of the Commonwealth’s commitment to using plain language, to the definitions of several terms used in the methods approved in 2005.
The instrument incorporates by reference Superannuation (State Public Sector) Deed 1990 (Qld), which sets out the terms and conditions on which superannuation benefits are provided under the QSuper superannuation scheme. The Deed can be viewed at the following website:
http://www.legislation.qld.gov.au/LEGISLTN/CURRENT/S/SuperStPuSecD90.pdf
The 2003 Approval also refers to the repealed Parliamentary Contributory Superannuation Act 1970 (Qld) (the repealed Act). That Act may be viewed at the following website:
http://www.legislation.qld.gov.au/LEGISLTN/REPEALED/P/ParliContSupA70_03D_051128.pdf
Copies of the Queensland Deed and the repealed Act may be purchased from the Queensland Government Bookshop, which is located at SDS Express, Ground Floor Mineral House, 41 George Street, Brisbane, Queensland (telephone: 07 3118 6900). The postal address for the Bookshop is Locked Bag 500, Coorparoo, Queensland 4151.
Consultation on the content of the instrument was undertaken under section 17 of the Legislative Instruments Act 2003 with the Australian Government Actuary, the Queensland State Actuary and the Queensland Government Superannuation Office, by way of correspondence and discussions.
Overview
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2008 (No.2) was enacted to amend the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003 (the Valuation Approval) to account for the changes in the superannuation arrangements for members of the Queensland Legislative Assembly. The problem it addresses is the need to update the valuation methods for superannuation interests to reflect the transition from the Parliamentary Contributory Superannuation Fund of Queensland to the Queensland Public Sector Superannuation Scheme (QSuper), as well as to ensure consistency and clarity in the language used in the approval. This amendment was approved by the Attorney-General under the authority of the Legislative Instruments Act 2003 and aligns with the policy objective of maintaining the rights and entitlements of members of the Queensland Legislative Assembly in their superannuation benefits.
Scope and Application
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2008 (No.2) amends the 2003 Valuation Approval to reflect changes in the superannuation arrangements for members of the Queensland Legislative Assembly, following the discontinuation of the Parliamentary Contributory Superannuation Fund of Queensland. This amendment ensures the continued application of valuation methods for superannuation interests held by these members, now maintained under the Superannuation (State Public Sector) Deed 1990 (Qld). The Act applies to persons, specifically members of the Queensland Legislative Assembly who have their superannuation interests managed under the QSuper scheme. Its geographic and jurisdictional reach is limited to Queensland, as it pertains to the state's public sector superannuation arrangements. The Act relocates and updates the valuation methods within the Valuation Approval to align with the current QSuper scheme, incorporating relevant definitions from the QSuper Deed. Subordinate instruments, such as the QSuper Deed, extend and specify the application of this approval, ensuring clarity and consistency in the valuation process.
Key Provisions
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2008 (No. 2) amends the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003 (the Valuation Approval) to address the changes in the superannuation arrangements for members of the Queensland Legislative Assembly. Under the original Valuation Approval, methods for valuing superannuation interests held by members of the Queensland Legislative Assembly in the Parliamentary Contributory Superannuation Fund of Queensland were approved in 2005. However, the Queensland Parliamentary Scheme was discontinued by the Superannuation (State Public Sector) Amendment Act 2007 (Qld). Consequently, the amendments made by this instrument relocate the provisions relating to the methods approved in 2005 from Part 2 to Part 1 of Schedule 4 of the Valuation Approval, reflecting that the superannuation interests are now held in the Superannuation (State Public Sector) Deed 1990 (Qld) (the QSuper Deed).
The amended legislation imposes specific obligations on parties and entities involved in the valuation of superannuation interests for the purpose of property settlements under the Family Law Act 1975. These obligations include ensuring that the methods and factors used for valuation are consistent with the provisions of the QSuper Deed and the amended Valuation Approval. It is essential for the parties to adhere to these methods and factors to correctly assess the value of superannuation interests held by members of the Queensland Legislative Assembly, particularly those with at least eight years of service. The instrument also includes drafting amendments to definitions of several terms used in the 2005 methods to ensure clarity and consistency in their application.
Breach of the obligations imposed by this legislation could lead to significant consequences. Although the specific penalties are not detailed in the explanatory statement, non-compliance with the approved methods and factors for valuing superannuation interests could result in inaccurate valuations, potentially leading to disputes and legal challenges during property settlements. These inaccuracies could, in turn, lead to financial disputes and legal actions under the Family Law Act 1975, where the correct valuation of superannuation interests is crucial. It is therefore imperative for all parties to follow the stipulated methods and factors to avoid any potential legal repercussions.