{"id":"F2004B00255","name":"Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2004","slug":"family-law-superannuation-interest-rate-for-adjustment-period-determination-2004","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":31343,"registerId":"commonwealth-F2004B00255-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2004","content":"![](image.001.png)\n\nFamily Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2004\n\nFamily Law (Superannuation) Regulations 2001\n\nI, PETER COLIN MARTIN, Australian Government Actuary:\n\n(a) acting under subregulation 45D (3) of the Family Law (Superannuation) Regulations 2001, determine that the interest rate for the adjustment period, being the financial year beginning on 1 July 2004, is 0.078; and\n\n(b) acting under subregulation 45D (4) of those Regulations, determine that the method set out in Schedule 1 is the method for calculating the interest rate for an adjustment period of less than 12 months that begins and ends in the financial year beginning on 1 July 2004; and\n\n(c) acting under subregulation 45D (6) of those Regulations:\n\n(i) determine, for the purposes of subparagraph 45D (5) (b) (i) of those Regulations, that the method set out in Schedule 2 is the method for calculating the interest rate for an adjustment period of exactly 12 months beginning before 30 June in the financial year ending on 30 June 2004 and ending in the next financial year; and\n\n(ii) determine, for the purposes of subparagraph 45D (5) (b) (ii) of those Regulations, that the method set out in Schedule 3 is the method for calculating the interest rate for an adjustment period of less than 12 months beginning before 30 June in the financial year ending on 30 June 2004 and ending in the next financial year.\n\n    This Determination commences on 1 July 2004.\n\nDated 29 June 2004\n\nPETER COLIN MARTIN\n\nAustralian Government Actuary\n\nSchedule 1 Method — Adjustment period of less than 12 months in the 2004–05 financial year\n\n(paragraph (b))\n\n    The method for calculating the interest rate for the adjustment period is:\n\n![](image.002.png)\n\n    where:\n\n> d is the number of days in the adjustment period.\n\nSchedule 2 Method — Adjustment period of exactly 12 months in the 2003–04 and 2004–05 financial years\n\n(subparagraph (c) (i))\n\n    The method for calculating the interest rate for the adjustment period is:\n\n![](image.003.png)\n\n    where:\n\n> d1 is the number of days in the adjustment period in the financial year ending on 30 June 2004.\n\n> d2 is the number of days in the adjustment period in the financial year beginning on 1 July 2004.\n\nSchedule 3 Method — Adjustment period of less than 12 months in the 2003–04 and 2004–05 financial years\n\n(subparagraph (c) (ii))\n\n    The method for calculating the interest rate for the adjustment period is:\n\n![](image.004.png)\n\n    where:\n\n> d1 is the number of days in the adjustment period in the financial year ending on 30 June 2004.\n\n> d2 is the number of days in the adjustment period in the financial year beginning on 1 July 2004.","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This Determination does not change the legislative scope or purpose of the underlying Regulations. It exercises the specific, narrow power in subregulation 45D of the Family Law (Superannuation) Regulations 2001 to set the interest rate for a specified adjustment period and to specify methods for calculating that rate for shorter or cross‑year adjustment periods. It does not broaden or otherwise alter substantive family law rights or introduce new policy obligations; it only provides the annual numeric rate and the arithmetic methods needed to implement existing regulatory requirements."},"complexity_factors":["Short instrument (one page of operative text plus three short schedules)","Single numeric determination (0.078) for the financial year — simple value to apply","Three schedules setting three arithmetic methods: (1) less-than-12-month periods wholly in 2004–05, (2) exactly 12 months crossing 2003–04 and 2004–05, (3) less-than-12-month periods crossing the two financial years","Cross-references to subregulation 45D(3), (4), (5)(b)(i),(ii) and (6) of the Family Law (Superannuation) Regulations 2001 (limited external cross-referencing)","A small number of defined variables (d, d1, d2) representing day counts — minor potential for day-counting ambiguity","Minor conditional logic limited to whether the adjustment period is <12 months, =12 months, and whether it crosses 30 June"],"plain_english_summary":"**What this instrument does, in plain English**\n\n- This is a short statutory determination setting the interest rate used when adjusting superannuation (retirement savings) interests under the Family Law (Superannuation) Regulations 2001 for the 2004–05 financial year.\n\n- It names the Australian Government Actuary as the decision‑maker and does three things (all under the power in subregulation 45D of the Family Law (Superannuation) Regulations 2001):\n  - It sets the annual interest rate for the adjustment period that begins 1 July 2004 as 0.078 (decimal). That is the nominal rate to be used for that financial year. (Paragraph (a).)\n  - It prescribes the formula to convert that annual interest rate to an interest rate for any adjustment period shorter than 12 months that falls wholly inside the 2004–05 financial year. That method is in Schedule 1. (Paragraph (b).)\n  - It prescribes two formulas for adjustment periods that begin before 30 June 2004 and finish in the 2004–05 year: one for an adjustment period of exactly 12 months (Schedule 2) and one for an adjustment period of less than 12 months (Schedule 3). Those schedules are chosen to give the correct combined/weighted interest where the adjustment period straddles two financial years. (Paragraph (c)(i) and (ii).)\n\n- The Determination takes effect on 1 July 2004 (commencement clause).\n\n**Who this affects**\n\n- People who are splitting or adjusting superannuation interests as part of family law property matters (for example, separating couples whose superannuation benefits are subject to a split or valuation adjustment).\n- Superannuation funds, trustees and administrators who must apply the prescribed interest rate and methods when calculating amounts to be transferred, adjusted or credited under family law orders/agreements.\n- Courts, registrars and family law practitioners who rely on the prescribed rate and methods when giving effect to property settlement orders that involve superannuation adjustments.\n\n**Why it matters (mechanically)**\n\n- Family law procedures for splitting or adjusting superannuation frequently require an interest adjustment to reflect the time between valuation dates or payment dates. This Determination fixes the numeric annual rate for 2004–05 and gives formulae to convert the annual rate into the correct rate for shorter periods or for periods that cross the 30 June financial year boundary.\n- By specifying the method for: (a) periods wholly in 2004–05, (b) periods of exactly 12 months that cross from 2003–04 into 2004–05, and (c) shorter crossing periods, the instrument removes uncertainty about how to pro‑rate or combine year‑specific rates when calculating interest for an adjustment period.\n\n**Official purpose claim and a short test against implementation costs and incentives**\n\n- The Determination’s stated function is administrative: applying the regulation‑making power to set an interest rate and the methods for pro‑rating it across varying adjustment periods. That is the purpose claimed by the text (see subregulation references in the opening paragraph).\n\n- Costs and incentives: the immediate compliance cost is operational — trustees and practitioners must apply the numerical rate and the formulae. There is no new tax or substantive policy change in this instrument; it simply provides arithmetic rules. The Actuary exercises limited discretion under statutory power to pick the rate and formulae; users must apply them. The most concrete implementation risks are calculation errors (day‑counting and rounding) and misapplication when adjustment periods straddle financial years. Those risks are reduced by the schedules, which explicitly handle cross‑year periods (Schedules 2 and 3).\n\n**Who pays and who decides (mechanics)**\n\n- The Australian Government Actuary decides the rate and the calculation methods under delegated regulation powers. (Opening paragraph.)\n- The practical financial effect falls on the parties to family law proceedings (the payee or payer of the adjustment) and on superannuation funds that implement the adjustment. The instrument determines how much interest is added or deducted when calculating the final adjustment amounts.\n\n**Other operational notes and potential frictions**\n\n- The Determination uses day counts (variables d, d1, d2 in the schedules). This requires correct counting of days in the adjustment period and correct allocation between the two financial years where relevant.\n- Because the rate is expressed as a decimal (0.078), administrators must know whether that is interpreted as nominal annual interest (the text and regulatory context indicate that) and must apply the Schedule formulae consistently (for example, using 365 days per year unless the schedules specify otherwise).\n- The instrument is narrow and administrative: it does not change substantive family law rights, only the arithmetic used to implement adjustments under existing family law superannuation rules.\n\n(References: opening paragraph and Schedules 1–3, Family Law (Superannuation) Regulations 2001 subregulation 45D as cited in the Determination.)"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This determination performs exactly the function intended by its enabling regulations — setting annual interest rates and calculation methods for superannuation splitting adjustment periods. It has not expanded beyond its original technical purpose."},"complexity_factors":["Short, single-purpose instrument (4 pages including signatures and schedules)","Only 1 defined term used ('adjustment period' — defined in the parent Regulations, not here)","Three simple mathematical formulas in schedules, all following the same basic pattern","Heavy cross-referencing to subregulations of the Family Law (Superannuation) Regulations 2001 (6 separate citations)","No nested exceptions or conditional logic beyond the three distinct scenarios covered","Temporal limitation — applies only to specific financial year (2004-05), making it a 'sunset' instrument by design"],"plain_english_summary":"This is a technical determination made by the Australian Government Actuary that sets the interest rate for splitting superannuation (retirement savings) during family law property settlements for the 2004-05 financial year.\n\n**What it does:**\n- Sets the interest rate at **7.8%** (0.078) for calculating how superannuation interests grow during \"adjustment periods\" in the 2004-05 financial year\n- Provides mathematical formulas for calculating interest when the adjustment period:\n  - Is less than 12 months within the 2004-05 year\n  - Spans exactly 12 months across both the 2003-04 and 2004-05 financial years\n  - Is less than 12 months but still spans across both financial years\n\n**Who it affects:**\n- Couples going through separation or divorce where superannuation is being divided\n- Family lawyers handling property settlements\n- Superannuation funds processing payment splits\n\n**Why it matters:**\nWhen couples split up, superannuation often needs to be divided between them. Because legal processes take time, there's usually a gap between when the court orders the split and when the money actually moves. This \"adjustment period\" means the superannuation balance changes due to investment returns. This determination sets the formula for calculating exactly how much that change should be, ensuring fair division of retirement savings."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2004","history":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2004/history","analysis":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2004/analysis","conflicts":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2004/conflicts","importantCases":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2004/important-cases","documents":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2004/documents"}}