Changes to the law
There have been recent changes in family law superannuation splitting laws.
Family Law (Superannuation) Regulations 2025
The Family Law (Superannuation) Regulations 2025 (the 2025 Regulations) commenced on 1 April 2025 and replace the Family Law (Superannuation) Regulations 2001.
Like the regulations they replace, the 2025 Regulations enable trustees to share information about superannuation interests, provide formulae to value interests for family law purposes, and give practical effect to superannuation splitting orders and agreements.
The key changes that were incorporated into the 2025 Regulations were to:
- update the ‘default’ methods and factors used for valuing certain superannuation interests, including updates to the demographic and economic assumptions which underpin these methods and factors
- ensure innovative retirement income stream products are captured consistently with other superannuation interests for family law purposes
- clarify key terms, including ‘base amount’ and ‘component of a superannuation interest’
- introduce flexibility to the way a non-member spouse gives information to a trustee following the making of a superannuation agreement or court orders
- expand the types of superannuation interests for which the Minister may approve valuation methods and factors
- introduce a transition factor to mitigate any unintended consequences of the 2025 Regulations on superannuation agreements or court orders made before 1 April 2025.
These changes follow public consultation on an exposure draft of the 2025 Regulations in early 2024.
Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025 (the 2025 Approval Instrument) began on 1 April 2025 at the same time as the Family Law (Superannuation) Regulations 2025 (the 2025 Regulations). The 2025 Approval Instrument replaced the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003.
This instrument contains methods and factors approved by the Attorney-General that are used to value certain superannuation interests for family law purposes. Superannuation trustees are encouraged to review and update their approved methods and factors. To allow time for this, the 2025 Approval Instrument preserves the operation of the existing approved methods and factors.
The 2025 Approval Instrument also includes minor updates to preserve the operation of the instrument it replaces. The values produced by the approved methods and factors in the 2025 Approval Instrument will not change from the values produced under the old instrument. The 2025 Approval Instrument preserves cross-references to methods or factors in the Family Law (Superannuation) Regulations 2001, even though those regulations have been repealed and replaced.
The 2025 Regulations and 2025 Approval Instrument also introduce the use of a ‘transition factor’. This is to mitigate any unintended consequences from updating methods or factors, for superannuation agreements or court orders made before 1 April 2025.
At this stage, a transition factor of one has been approved for all interests in the 2025 Approval Instrument. This has no substantive effect, but ensures the methods in Part 7 of the 2025 Regulations continue to function.
Read more about valuing superannuation interests.
Family Law Amendment Act 2024
The Parliament passed the Family Law Amendment Act 2024 (the Amendment Act) on 29 November 2024.
The Amendment Act makes significant changes to the framework for resolving the property and financial aspects of relationship breakdown in the Family Law Act 1975. It also makes changes to Parts VIIIB and VIIIC of the Family Law Act to enhance the family law superannuation splitting framework.
Read more about the changes to the family law system.
The Family Law Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Act 2020
The Family Law Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Act 2020 began on 28 September 2022. It inserted Part VIIIC to the Family Law Act to allow de facto couples in Western Australia to split their superannuation when dividing their property after a relationship breakdown.
This means that all married and de facto couples in Australia are treated equally under the law in respect of their ability to divide their property, including their superannuation, following separation.