EXPLANATORY STATEMENT
FAMILY LAW (SUPERANNUATION) (PROVISION OF INFORMATION – COMMONWEALTH SUPERANNUATION SCHEME) AMENDMENT DETERMINATION 2005 (No.1)
ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL
In this instrument the Attorney-General provides, by written determination under subregulation 64(7B) of the Family Law Regulations (Superannuation) 2001 (the Principal Regulations), for the matters about which the trustee of the Commonwealth Superannuation Scheme (the Scheme) is required to provide information, under the family law and superannuation reforms permitting superannuation to be split on marriage breakdown, in respect of superannuation interests that are in the payment phase for which alternative valuation methods were approved in March and May 2004.
When alternative valuation methods were initially approved in relation to interests in the Scheme in 2004, there was no power under the Principal Regulations to make a determination about information requirements under the reforms in respect of a superannuation interest that is in the payment phase.
Subregulation 64(7B), providing for a power to make a determination in respect of such an interest that is paying benefits as a lifetime pension, was inserted in the Principal Regulations by the Family Law (Superannuation) Amendment Regulations 2004 (No.1) in September 2004.
The information provided under the reforms by the trustee of the Scheme to spouses will enable them to value superannuation interests in the Scheme that are in the payment phase and paying lifetime pensions in accordance with the alternative valuation methods.
In the instrument, the Attorney-General also provides that the trustee of the Scheme is not required to provide information relevant to valuing a superannuation interest in accordance with the default methods under the reforms which the alternative valuation methods, approved in 2004, replace.
Finally, the Attorney-General in the instrument also makes adjustments to the matters on which the trustee of the Scheme is not required to provide information in respect of other interests for which he approved alternative valuation methods in 2004. The adjustments are consequential on the inclusion by the Family Law (Superannuation) Amendment Regulations 2004 (No.1) in the Principal Regulations of default methods for valuing a defined benefit superannuation interest held by a party to a marriage as a result of employment in which the party is, at the time of valuation, no longer engaged.
The instrument incorporates by reference two other documents – the Superannuation Act 1976 and the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003.
The Superannuation Act 1976, which sets out sets out the governing rules of the Scheme, can be viewed at the following website:
http://www.comlaw.gov.au/ComLaw/Legislation/ActCompilation1.nsf/current/bytitle/A14ECB42E6D124F1CA256FBD00041D4B?OpenDocument&mostrecent=1
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003, the instrument containing the alternative valuation methods approved under the Principal Regulations for the purpose of the family law and superannuation reforms, can be viewed at the following website:
http://www.comlaw.gov.au/ComLaw/Legislation/LegislativeInstrumentCompilation1.nsf/current/bytitle/0C1BC81DBE638317CA256FAB000F0455?OpenDocument&mostrecent=1
Copies of the Superannuation Act 1976 and the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003 may be purchased from CanPrint Information Services, 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 Commonwealth Superannuation Administration (ComSuper) by way of exchange of correspondence and discussions.