Valuing superannuation interests – defined benefit interests
Valuation methods and factors in the Regulations
The Family Law (Superannuation) Regulations 2025 set out how superannuation interests are to be valued. For certain superannuation interests, including defined benefit interests and some types of pensions, valuation involves the use of methods (actuarial formulas) and factors (tables of numbers based on economic and demographic assumptions) contained in the regulations.
Valuation methods and factors for superannuation interests are complex, and parties should seek expert advice to value these types of interests.
Approved methods and factors
If a trustee proposes that the valuation methods and factors in the Family Law (Superannuation) Regulations 2025 are not appropriate for interests in their superannuation plan, they may provide alternative methods and factors, specific to the superannuation plan, for the approval of the Minister.
These ‘approved’ methods and factors are included in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025.
Valuation methods and factors for superannuation interests are complex, and parties should seek expert advice to value these types of interests.
For trustees – applying for or updating approved methods and factors
If you are a trustee wanting to apply for or update your ‘approved’ methods and factors in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025 (Approval Instrument), these are the steps:
- Provide the proposed methods and factors to us at FLSRegulations@ag.gov.au.
- We will consider the proposed methods and factors, and seek actuarial advice to confirm their suitability.
- If required, you may need to provide further information or address queries arising from the actuarial advice.
- We will arrange for those methods and factors to be drafted into a format suitable for incorporation into the Approval Instrument.
- The Minister (Attorney-General) will be asked to approve these changes to the Approval Instrument.
- Once approved, the changes will come into effect.
This process may take several months. You are welcome to contact us at FLSRegulations@ag.gov.au before you begin.