{"id":"F2006L01724","name":"Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2006","slug":"family-law-superannuation-interest-rate-for-adjustment-period-determination-2006","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":59497,"registerId":"commonwealth-F2006L01724-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2006","content":"![](image.001.png)\n\nFamily Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2006\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 2006, is 0.070; 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 2006; 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 the end of the financial year ending on 30 June 2006 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 the end of the financial year ending on 30 June 2006 and ending in the next financial year.\n\nThis Determination commences on 1 July 2006.\n\nDated 1 June 2006\n\nPETER COLIN MARTIN\n\nAustralian Government Actuary\n\nSchedule 1 Method — Adjustment period of less than 12 months in the 2006–07 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\n  \n\nSchedule 2 Method — Adjustment period of exactly 12 months bridging the  \n2005–06 and 2006–07 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 2006.\n\n> d2 is the number of days in the adjustment period in the financial year beginning on 1 July 2006.\n\n  \n\nSchedule 3 Method — Adjustment period of less than 12 months bridging the 2005–06 and 2006–07 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 2006.\n\n> d2 is the number of days in the adjustment period in the financial year beginning on 1 July 2006.","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This Determination performs exactly the narrow technical function it was designed for: setting the annual interest rate for superannuation splitting adjustments. It has not expanded beyond its original purpose of providing the specific rate and calculation methods required by the Family Law (Superannuation) Regulations 2001."},"complexity_factors":["Very short document (approximately 400 words)","Only 1 substantive number to determine: the interest rate of 0.070 (7%)","Three simple mathematical formulas in schedules, all variations of weighted daily calculations","Minimal defined terms (only d, d1, d2 for day counts)","No nested exceptions or conditional logic beyond the three scenario-based schedules","Single purpose instrument with no cross-references to other legislation beyond the enabling regulation"],"plain_english_summary":"This instrument fixes the interest rate at 7.0% for calculating adjustments to superannuation splits arising from separation or divorce for the 2006–07 financial year. It affects separating couples, family lawyers, and super funds by determining how amounts are adjusted for the delay between orders and transfers.  \n\nIn short: it sets the base rate used to update transferred super entitlements for 2006–07."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This Determination is an annual, administrative implementation of an existing regulatory power: it sets the interest rate for a particular financial year and prescribes how to apply that rate to partial-year and bridging adjustment periods. It does not broaden or narrow the regulatory scope of the Family Law (Superannuation) Regulations 2001; it operates within the Regulations' existing framework and therefore does not change the scope beyond the instrument’s original, recurring purpose."},"complexity_factors":["Short instrument (one page of substantive text plus three short schedules)","Single numeric rate set (0.070) — low definitional load","Three separate calculation methods (Schedules 1–3) handling: (a) <12 months inside one year, (b) exactly 12 months bridging two years, (c) <12 months bridging two years","Three simple variables used in formulas (d, d1, d2) defined in schedules","Cross-reference to Family Law (Superannuation) Regulations 2001 subregulation 45D and to the prior financial year’s rate for bridging calculations","Formulas use fractional-year exponentiation/accumulation (days/365), requiring precise day counts and some numerical care"],"plain_english_summary":"**What this instrument does (mechanics)\n\n- This Determination, made by the Australian Government Actuary under the Family Law (Superannuation) Regulations 2001, fixes the numerical annual interest rate to be used when calculating superannuation adjustment-period interest for the 2006–07 financial year. The rate set is 0.070 (i.e. 7.0% expressed as a decimal).\n\n- It also prescribes three calculation methods (in Schedules 1–3) for converting that annual rate into an interest rate that applies to particular adjustment periods: \n  - Schedule 1: the formula to use when the adjustment period is less than 12 months and falls entirely inside the 2006–07 financial year; you plug in d = number of days in the adjustment period.\n  - Schedule 2: the formula to use when an adjustment period is exactly 12 months and straddles two financial years (part in 2005–06 and part in 2006–07); you use d1 = days in the period in 2005–06 and d2 = days in 2006–07 and combine the two years' accumulation factors.\n  - Schedule 3: the formula to use when an adjustment period of less than 12 months straddles the same two financial years; you again use d1 and d2 and combine the two years' factors.\n\n- The Determination takes effect from 1 July 2006.\n\nWho this affects\n\n- People and their lawyers involved in splitting superannuation interests under the Family Law Act where an adjustment-period interest calculation is required (for example, when apportioning superannuation entitlements after separation). \n- Courts, registrars and actuaries who prepare or check the calculations for property settlements that involve superannuation.\n\nWhy it matters (practical effect)\n\n- The interest rate chosen determines how much interest is attributed to a superannuation interest over the adjustment period. That interest changes the dollar amount that may be transferred or offset between parties when superannuation is split. A higher annual rate increases the accumulated amount attributable to a period; a lower rate reduces it.\n\nOfficial purpose claim and a short operational test of that claim\n\n- The instrument’s stated purpose (via the Regulations) is administrative: to fix a single annual interest rate for the 2006–07 financial year and to give precise formulae for partial-year or bridging periods. The Determination accomplishes that directly by setting 0.070 and giving the mathematical methods. \n\n- Costs and incentives: the Determination imposes calculation requirements on practitioners (must use the specified formulas and, for bridging periods, the prior financial year’s applicable rate as well). The compliance burden is procedural and arithmetic rather than substantive. The choice of rate shifts financial outcomes between parties in individual matters (a concentrated effect on those cases), while the administrative cost of using the formulae is diffuse across the legal/actuarial profession.\n\n- Implementation risks and dependencies: the bridging schedules require knowledge of the other financial year’s prescribed rate; if that previous rate is not known or was set under a different method, small rounding and compounding differences can arise. The formulas appear to apply compounding over fractional years (days/365), so accurate day counts and consistent use of the prescribed base rates are necessary to avoid disputes.\n\nWho pays, who decides, and what behaviour changes\n\n- Who decides: the Australian Government Actuary (under the delegated regulation power) decides the numeric rate and the prescribed conversion methods. \n- Who pays: the parties to a family law property settlement do not directly pay the Determination but the interest rate set alters how much one party may have to transfer to or receive from the other when superannuation is adjusted. \n- Behaviour changes: lawyers and valuers will apply the specified rate and formulae in calculations; parties may see different net outcomes depending on whether the adjustment period falls inside a single financial year or straddles two years.\n\nConcrete references to the instrument\n\n- The fixed annual rate is set at 0.070 (paragraph (a)). Schedules 1–3 give the formulae and define d, d1 and d2 (the day counts used in the calculations). The Determination cites subregulation 45D of the Family Law (Superannuation) Regulations 2001 as the power under which the Actuary acts.\n\n"},"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-2006","history":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2006/history","analysis":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2006/analysis","conflicts":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2006/conflicts","importantCases":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2006/important-cases","documents":"/api/acts/family-law-superannuation-interest-rate-for-adjustment-period-determination-2006/documents"}}