{"id":"F2004B00119","name":"Defence Forces Retirement Benefits (Family Law Superannuation) Orders 2004","slug":"defence-forces-retirement-benefits-family-law-superannuation-orders-2004","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"100 of 2004","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":31276,"registerId":"commonwealth-F2004B00119-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Defence Forces Retirement Benefits (Family Law Superannuation) Orders 2004","content":"![](image.001.png)\n\nDefence Forces Retirement Benefits (Family Law Superannuation) Orders 2004\n\nStatutory Rules 2004 No. 100 as amended\n\nmade under the\n\nDefence Forces Retirement Benefits Act 1948\n\nThis compilation was prepared on 24 December 2004 \ntaking into account amendments up to SR 2004 No. 409\n\nPrepared by the Office of Legislative Drafting and Publishing, \nAttorney-General’s Department, Canberra\n\nContents\n\nPart 1 Preliminary\n\n1.01 Name of Orders\n\n1.02 Commencement\n\n1.03 Definitions\n\nPart 2 Orders for the calculation of certain amounts\n\n2.01 Scheme value\n\n2.02 Annual rate of associate pension\n\n2.03 Indexation of associate pension\n\n2.04 Commutation of small associate pension — amount\n\n2.05 Indexation of amount for small associate pension\n\n2.06 Reduction of standard pension\n\nNotes\n\nPart 1 Preliminary\n\n1.01 Name of Orders\n\nThese Orders are the Defence Forces Retirement Benefits (Family Law Superannuation) Orders 2004.\n\n1.02 Commencement\n\nThese Orders commence, or are taken to have commenced, on the commencement of Schedule 1 to the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004.\n\n1.03 Definitions\n\n(1) In these Orders:\n\n> Act means the Defence Forces Retirement Benefits Act 1948.\n\n> Family Law Act means the Family Law Act 1975.\n\n> FLS Regulations means the Family Law (Superannuation) Regulations 2001.\n\n(2) An expression that is used in these Orders and defined in section 80A of the Act has the meaning given by that section.\n\n> Note Section 80A of the Act defines expressions including non-member spouse, operative time and transfer amount. Some expressions are defined in section 80A to have the same meaning as in the Family Law Act.\n\n \n\nPart 2 Orders for the calculation of certain amounts\n\n2.01 Scheme value\n\nFor the definition of scheme value in section 80A of the Act, the scheme value in relation to a member spouse is determined as follows:\n\n| Step 1 | Identify the methodology and factors set out in regulations made for section 90MT of the Family Law Act that would be used to determine the family law value in relation to the member spouse in accordance with that section as if that section applied in relation to the member spouse.Note The family law value is determined in accordance with the FLS Regulations that are made for paragraph 90MT (2) (a) of the Family Law Act. The process of determining the family law value may include reliance on methodology and factors approved by the Attorney-General under subsection 90MT (3) of that Act. |\n| ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Step 2 | Substitute the factors with factors nominated by an actuary for these Orders. |\n| Step 3 | Use the methodology identified in step 1, and the factors substituted in step 2, to determine the scheme value in relation to the member spouse. |\n\n2.02 Annual rate of associate pension\n\nFor subsection 80B (2) of the Act, the annual rate of associate pension payable to a non-member spouse to whom that subsection applies is calculated as follows:\n\n| Step 1 | Identify the transfer amount in relation to the non-member spouse.Note Subsection 80B (2) of the Act requires the rate of associate pension to be calculated by reference to the transfer amount. |\n| ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n| Step 2 | Identify a pension factor, nominated by an actuary for these Orders, based on the non‑member spouse’s age and gender.Note Schedule 4 to the FLS Regulations sets out general pension factors based on age and gender, but those factors are not specific to benefits payable under the Act. |\n| ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Step 3 | Divide the transfer amount by the pension factor worked out in step 2. |\n\nThe result is the annual rate of the associate pension.\n\n> Note The associate pension does not include a reversionary component.\n\n2.03 Indexation of associate pension\n\n(1) This section applies if the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the first quarter of the half‑year immediately preceding a prescribed half-year (the CPI index number) exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the first quarter of any earlier half-year.\n\n(2) A person to whom an associate pension was payable immediately before the commencement of the prescribed half‑year is entitled, at the commencement of the prescribed half‑year, to an increase in the rate at which the associate pension was payable to him or her immediately before the commencement of the prescribed half-year (the relevant rate of associate pension).\n\n(3) The increase is the prescribed percentage, worked out in accordance with subsection (4), of the relevant rate of associate pension.\n\n(4) To work out the prescribed percentage for a prescribed half‑year:\n\n(a) from the CPI index number subtract the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician for the first quarter of any half‑year earlier than the half-year immediately preceding the prescribed half‑year; and\n\n(b) express the result as a percentage of the highest all groups consumer price index number in paragraph (a).\n\n(5) If:\n\n(a) a person to whom an associate pension is payable would be entitled to an increase in the rate at which the associate pension was payable to him or her immediately before the commencement of the prescribed half-year; and\n\n(b) the associate pension became payable in relation to a member spouse’s pension that first became payable to the member spouse on or before 16 June or 16 December (as the case requires) in the preceding half-year;\n\nthe amount of the increase is an amount calculated in accordance with the formula:\n\n![](image.002.png)![](image.003.png)\n\nwhere:\n\n> full increase means the amount of the increase that would have been applicable but for this subsection.\n\n> number of months in period means the number of months in the period that began on the day on which the member spouse’s pension became payable and ended on 30 June or 31 December in the preceding half-year.\n\n(6) If the period referred to in subsection (5) is less than 1 month, that period is treated as 1 month.\n\n(7) If the period referred to in subsection (5) consists of a number of whole months and a part of a month:\n\n(a) where the number of days in that part of that month is less than one-half of the number of days in that month — that part is disregarded; and\n\n(b) where the number of days in that part of that month is more than one-half of the number of days in that month — that part is treated as a whole month.\n\n(8) In this section:\n\n> preceding half-year, in relation to a pension, means the half‑year immediately preceding the prescribed half-year.\n\n2.04 Commutation of small associate pension — amount\n\n(1) For subsection 80C (1) of the Act, the amount is $1 303.03.\n\n(2) On 1 January 2005, the amount mentioned in subsection (1) is indexed in accordance with section 2.05.\n\n(3) On 1 July 2005, and on 1 January and 1 July in each year following 2005, the indexed amount in force immediately before that date is indexed in accordance with section 2.05.\n\n2.05 Indexation of amount for small associate pension\n\n(1) If the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the first quarter of the half-year before the date of the indexation (factor A) exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the first quarter of any earlier half-year, not being a half‑year earlier than the half-year that commenced on 1 January 2004 (factor B), the amount is increased at the rate worked out in accordance with subsection (2).\n\n(2) The rate is A – B expressed as a percentage of B.\n\n2.06 Reduction of standard pension\n\nFor subsection 80D (1) of the Act, the amount to which an annual rate of standard pension payable in respect of an original interest is to be reduced is calculated as follows:\n\n| Step 1 | Identify the annual rate of standard pension that was payable to the member spouse immediately before the operative time. |\n| ------ | ------------------------------------------------------------------------------------------------------------------------- |\n| Step 2 | Calculate a reduction factor using the formula |\n| Step 3 | Multiply the amount identified in step 1 by the reduction factor. |\n\nThe result is the annual rate of the standard pension payable after the operative time in respect of the original interest.\n\n> Notes to the Defence Forces Retirement Benefits (Family Law Superannuation) Orders 2004\n\n> Note 1\n\n> Note: The Defence Forces Retirement Benefits (Family Law Superannuation) Orders 2004 (in force under the Defence Forces Retirement Benefits Act 1948) as shown in this compilation comprise Statutory Rules 2004 No. 100 amended as indicated in the Tables below.\n\n> Note: > Note: Table of Statutory Rules\n\n| Year andnumber | Date of notificationin Gazette | Date ofcommencement | Application, saving ortransitional provisions |\n| -------------- | ------------------------------ | --------------------------------------------------------- | --------------------------------------------- |\n| 2004 No. 100 | 20 May 2004 | 18 May 2004 (see s. 1.02) | |\n| 2004 No. 409 | 24 Dec 2004 | Ss. 1–3 and Schedule 1: 1 July 2004Remainder: 24 Dec 2004 | — |\n\n> Note: > Note: Table of Amendments\n\n```html\n

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

S. 2.04...............

am. 2004 No. 409

S. 2.05...............

am. 2004 No. 409

\n```","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"These Orders are technical implementing rules that set calculation methods, indexation procedures and a commutation threshold for applying family law splits to DFRB entitlements. They do not broaden eligibility or add new types of entitlements beyond what the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004 intended. Amendments reflected (SR 2004 No. 409) adjust numeric values and indexation mechanics but do not materially expand the legal scope or introduce new categories of beneficiaries; the Orders remain a procedural/valuation instrument supporting family law splitting of DFRB benefits."},"complexity_factors":["Multiple cross‑references to other laws and instruments (DFRB Act s.80A–80D, Family Law Act s.90MT, FLS Regulations) which require reading external materials","Actuary‑nominated factors replace published Family Law factors (s.2.01 step 2; s.2.02 step 2) — introduces external technical inputs","Several conditional indexation rules using CPI comparisons to the \"highest earlier\" quarter (s.2.03; s.2.05)","Proration and rounding rules for fractional months in indexation (s.2.03(5)–(7))","Numeric threshold for small pension commutation plus an ongoing indexation schedule (s.2.04–2.05)","Presence of a prescribed reduction formula for standard pension (s.2.06) presented as a formula rather than plain text","Temporal complexity: different commencement and indexation dates (commencements tied to Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004; indexing from specified dates) (s.1.02; s.2.04)","Amendment history (SR 2004 No. 409) altering numeric and indexation provisions increases version‑tracking burden"],"plain_english_summary":"These Orders set precise rules for valuing and converting Defence Forces Retirement Benefits (DFRB) interests for family‑law property splits and associate‑pension transfers. They require actuary‑nominated valuation and pension factors, prescribe CPI‑based indexation (with proration and rounding), and fix an indexed dollar threshold for small‑pension commutation. Affected parties are DFRB member spouses and their non‑member spouses; the rules matter because they determine how much is transferred or retained and centralise influence with appointed actuaries."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: providing the specific calculation methodologies required to implement superannuation splitting for the Defence Forces Retirement Benefits scheme under family law. The 2004 amendment (SR 2004 No. 409) was a technical update adjusting the small pension commutation threshold and its indexation mechanism, not an expansion of scope."},"complexity_factors":["Multi-layered calculation methodology requiring cross-reference to external regulations (Family Law (Superannuation) Regulations 2001) and actuarial factors not contained in the instrument itself","Nested conditional logic in section 2.03 for indexation, including pro-rata calculations for partial periods with specific rounding rules (less than half month disregarded, more than half treated as whole month)","Circular definition dependency: section 2.01 relies on 'family law value' methodology from Family Law Act regulations, then substitutes actuarial factors, creating a two-step regulatory lookup","Multiple defined terms across three legislative sources (these Orders, the Defence Forces Retirement Benefits Act 1948, and the Family Law Act 1975)","Mathematical formulas with multiple variables including CPI indexation calculations with 'highest previous' comparison logic","Temporal complexity with different commencement dates for indexation (1 January 2005 initial, then biannual 1 January/1 July pattern)"],"plain_english_summary":"This legislation sets out the rules for dividing military superannuation between separating couples under family law.\n\n**What it does:**\nWhen a couple divorces or separates, their superannuation (retirement savings) can be split between them. These Orders create the specific mathematical formulas for splitting Defence Forces Retirement Benefits (DFRB) — the old military superannuation scheme for Australian Defence Force members.\n\n**Key mechanics:**\n\n- **Scheme value (section 2.01):** Determines how much the military super is worth for family law purposes. It borrows the calculation method from general family law super regulations, but swaps in actuarial factors specific to military pensions.\n\n- **Associate pension (section 2.02):** If a non-member spouse (the partner who wasn't in the Defence Force) receives a share of the super as a pension rather than a lump sum, this calculates the annual amount. It divides the \"transfer amount\" (the share they're entitled to) by a pension factor based on their age and gender.\n\n- **Indexation (sections 2.03 and 2.05):** Both the associate pension and the threshold for \"small\" pensions that can be converted to lump sums are adjusted twice yearly for inflation using CPI (Consumer Price Index) data.\n\n- **Small pension commutation (section 2.04):** If the associate pension is tiny (initially set at $1,303.03 annually), the non-member spouse can take it as a one-off lump sum instead. This threshold is indexed for inflation.\n\n- **Reduction of member's pension (section 2.06):** When a member spouse's super is split, their own standard pension is reduced proportionally using a reduction factor.\n\n**Who it affects:**\n- Separating or divorcing couples where one partner has DFRB superannuation\n- The \"non-member spouse\" (usually the civilian partner) who receives a share\n- The \"member spouse\" (the ADF member or veteran) whose pension is reduced\n\n**Why it matters:**\nBefore these rules, military super was difficult to value and split in family law settlements. These Orders provide the specific calculations needed to make superannuation splitting work for older Defence Force retirement schemes, ensuring fair property settlements while protecting the sustainability of the military pension system."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/defence-forces-retirement-benefits-family-law-superannuation-orders-2004","history":"/api/acts/defence-forces-retirement-benefits-family-law-superannuation-orders-2004/history","analysis":"/api/acts/defence-forces-retirement-benefits-family-law-superannuation-orders-2004/analysis","conflicts":"/api/acts/defence-forces-retirement-benefits-family-law-superannuation-orders-2004/conflicts","importantCases":"/api/acts/defence-forces-retirement-benefits-family-law-superannuation-orders-2004/important-cases","documents":"/api/acts/defence-forces-retirement-benefits-family-law-superannuation-orders-2004/documents"}}