Superannuation Legislation Amendment Act 2007 - Proclamation

Overview

The Superannuation Legislation Amendment Act 2007 was enacted to address specific issues within the Defence Retirement and Death Benefits Act 1973 and to correct an anomaly in the Family Law provisions of the same Act. This legislation was introduced by the Parliament of Australia and received Royal Assent on 25 September 2007. The primary objective of this amendment is to streamline the process of pension payments to spouses by reducing the post-retirement marital relationship test from five years to three years, thus ensuring timely pension payments to genuine spouses who meet this revised criterion. Furthermore, it provides a provision for pro-rata reversionary pensions to those spouses who do not meet the three-year requirement, thereby offering a measure of financial support to them. The Act was designed to address gaps and inconsistencies within existing superannuation laws, particularly concerning the Defence Retirement and Death Benefits Act 1973. The Proclamation issued under this Act fixes 1 January 2008 as the commencement date for Schedule 6, which includes these amendments. The Regulations governing the changes introduced by Schedule 6 are detailed in a separate legislative instrument. Importantly, this Proclamation, which solely pertains to the commencement of the Act’s provisions, is not subject to disallowance under the Legislative Instruments Act 2003.

Scope and Application

The Superannuation Legislation Amendment Act 2007 applies to individuals and entities associated with superannuation and pension benefits, particularly those governed under the Defence Retirement and Death Benefits Act 1973. It targets the specific provisions affecting the length of the post-retirement marital relationship test and the application of Family Law Orders to military pensions. The Act's geographic reach is national, as it applies to all Defence Force members and their beneficiaries throughout Australia. The Act received the Royal Assent on 25 September 2007, and Schedule 6, which contains the substantive changes, was proclaimed to commence on 1 January 2008. This legislation does not specify any exclusions or exemptions, nor does it establish any thresholds. The implementation of the Act’s provisions is further regulated through subordinate instruments, which are the subject of separate regulatory instruments and are not detailed in the Proclamation itself.

Key Provisions

The main provisions of the Superannuation Legislation Amendment Act 2007, particularly those in Schedule 6, introduce significant changes to the Defence Retirement and Death Benefits Act 1973. Firstly, Section 1 of Schedule 6 reduces the post-retirement marital relationship test from five years to three years (Section 1). This means that a spouse will only need to be in a marital relationship for three years before they are eligible to receive a pension. This change aims to provide more timely financial support to spouses who have been in a relationship with a pensioner for a shorter period. Secondly, the Act includes a provision for the payment of pro-rata reversionary pensions to genuine spouses who do not meet the revised three-year relationship test (Section 2). This ensures that even those who fall just short of the three-year requirement can still receive some pension benefits. Additionally, Part 2 of Schedule 6 addresses an anomaly in the Family Law provisions of the Defence Force Retirement and Death Benefits Act 1973, enabling Family Law Orders to be applied as intended, thereby ensuring that pension payments align with family law directives (Section 3). The Act imposes several obligations on the entities and individuals it governs. For instance, the Defence Retirement and Death Benefits Act 1973 must now be interpreted and applied in light of the reduced marital relationship test and the pro-rata pension provisions. The relevant authorities must ensure that spouses who meet the three-year requirement receive their pensions promptly, and those who do not must be assessed for pro-rata reversionary pensions. Additionally, the Act requires that Family Law Orders be applied correctly to pension payments, ensuring that any legal entitlements are honoured. Failure to comply with the requirements of the Superannuation Legislation Amendment Act 2007 could result in civil or criminal consequences, although specific offences and penalties are not detailed in the explanatory statement. The Act, however, mentions that the Proclamation, which sets the commencement date for Schedule 6, is a legislative instrument under the Legislative Instruments Act 2003. Proclamations that solely fix the commencement of Acts or provisions of Acts are not subject to disallowance, indicating a streamlined process for enacting these changes. The exact penalties for non-compliance would likely be found in the Defence Retirement and Death Benefits Act 1973 or related regulations, which are subject to separate instruments.