State Authorities Non-contributory Superannuation Regulation 2025
In ForceNSW
Jurisdiction
New South Wales
Act Number
462 of 2025
Collection
regulation
Plain English Summary
7/10 complexity
This regulation prescribes how the State Authorities Non‑contributory Superannuation Scheme is administered: it fixes methods for reducing and calculating benefits (including early‑release offsets, tax and no‑TFN reductions, and family‑law splits), sets rules for shift‑loading to be included in salary, and prescribes an employer contribution percentage. It governs what the trustee (STC) must do — create debt accounts, obtain actuarial advice, give notices and make payments — and so affects employees, former employees and non‑employee spouses whose entitlements are adjusted.
This regulation operationalises mechanics under the State Authorities Non-contributory Superannuation Act 1987 by prescribing calculation methods, procedural steps and recordkeeping obligations for reductions of benefits, family law splitting, shift‑loading treated as salary for superannuation purposes, employer contribution rates and several administrative matters. It commences on 1 September 2025 and replaces the 2020 regulation (s 2). It also carries forward any acts or arrangements that had effect under the repealed regulation (s 27).
Mechanically, the regulation:
Requires STC to obtain the employee’s or former employee’s written consent before reducing benefits as a consequence of an early release under the Act, s 23(1)(c) (s 4).
Prescribes how reductions are recorded and recovered when early release benefits are paid: either by reducing a preserved basic benefit immediately and on payment (s 5(2)) or by creating a debt account to be debited against future payments (s 5(3)-(4)). Interest on any debt account is charged at a rate set by STC (s 5(6)).
Prescribes which benefits are subject to reduction where tax liabilities arise (Division 2). Benefits under Act ss 22 and 26E, including preserved benefits under ss 24 and 26F, are prescribed unless payable because of death immediately following employment (s 7). Definitions relevant to timing of taxation liability are set out (s 6).
Requires STC to create and maintain debt accounts where no TFN tax applies and to notify affected employees and request TFNs at least annually (ss 10-11).
Sets the method for valuing superannuation interests for family law purposes by reference to a Commonwealth approval and requires procedural steps and timeframes when a member’s interest is subject to a payment split (ss 13-16). Non‑employee spouses get prescribed periods to nominate transfer vehicles, with a 60‑day period specified (s 14); STC must notify parties and pay within specified timeframes (ss 15-16). If no nomination is made the amount is to be credited to the Aware Super Fund (s 15(4)(c)).
Current sections
Direct links to the current provisions in State Authorities Non-contributory Superannuation Regulation 2025.
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
Part 2
Reductions of benefits
Part 2 Reductions of benefits
Part 2 Reductions of benefits
Division 1
Reductions relating to early release of benefits—the Act, s 23B
Division 1 Reductions relating to early release of benefits—the Act, s 23B
Division 1 Reductions relating to early release of benefits—the Act, s 23B
4
Consent to reduction relating to early release of benefit
4 Consent to reduction relating to early release of benefit
4 Consent to reduction relating to early release of benefit
Before releasing a benefit under the Act, section 23(1)(c) on the grounds of severe financial hardship or on compassionate grounds, STC must obtain the employee’s or former employee’s written consent to the reduction of benefits as a consequence of the early release.
5
Reduction of benefits
5 Reduction of benefits
5 Reduction of benefits
(1) This section applies to the reduction of benefits payable under the Act, section 22, 24 or 26E to an employee or former employee to whom a benefit (an early release benefit) has been released under the Act, section 23(1)(c) on the grounds of severe financial hardship or on compassionate grounds.
(2) If an early release benefit is released to a former employee for whom the basic benefit was preserved at the time of the release, STC must—
(a) on and from the date of release, reduce the amount of the preserved basic benefit by the amount of the early release benefit, and
(b) when the preserved benefit is payable, reduce the amount of the benefit by the amount of the early release benefit.
(3) If subsection (2) does not apply, STC must—
(a) create a debt account in relation to the employee or former employee, and
(b) when a benefit is payable, reduce the benefit payable by the amount debited to the debt account.
(4) Despite subsection (3), if an employee’s or former employee’s benefit is preserved after the release of an early release benefit but before the benefit is otherwise payable, STC must—
(a) on and from the date the benefit is preserved, reduce the amount of benefit preserved by the amount debited to the debt account, and
(b) when the preserved benefit is payable, reduce the benefit payable by the amount debited to the debt account.
(5) In determining the amount of a reduced benefit, STC may obtain actuarial advice.
(6) In this section—
amount debited, to a debt account, means the amount of the early release benefit and interest on that amount at a rate determined by STC.
Division 2
Reductions relating to tax liabilities—the Act, s 26A(2)
Division 2 Reductions relating to tax liabilities—the Act, s 26A(2)
Division 2 Reductions relating to tax liabilities—the Act, s 26A(2)
6
Definitions
6 Definitions
6 Definitions
In this division—
prescribed benefit means a benefit prescribed by section 7.
taxable date means the date on which STC is liable to pay income tax under a Commonwealth taxation law for employers’ contributions to the Fund.
For the Act, section 26A(2)(a), the benefits provided by the Act, sections 22 and 26E, including benefits preserved under the Act, sections 24 and 26F, are prescribed unless the benefit is payable as a result of the death of a person who was, immediately before death, an employee.
8
Reduction of basic benefit
8 Reduction of basic benefit
8 Reduction of basic benefit
(1) This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the basic benefit—
(a) is payable to an employee under the Act, section 23, or
(b) is preserved for an employee in accordance with the Act, section 24.
(2) For the Act, section 26A(2)(b), the prescribed method of calculating a reduction is—
where—
R represents the amount of the reduction.
F represents—
(a) if an employee resigns or retires—the employee’s final average salary, or
(b) otherwise—the employee’s final salary.
Z represents the employee’s years of eligible service calculated on a daily basis, commencing on or after the taxable date.
9
Reduction of deferred accrued benefit
9 Reduction of deferred accrued benefit
9 Reduction of deferred accrued benefit
(1) This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the deferred accrued benefit—
(a) is payable to an employee under the Act, section 23, or
(b) is preserved for an employee in accordance with the Act, section 26F.
(2) For the Act, section 26A(2)(b), the prescribed method of calculating a reduction is—
where—
R represents the amount of the reduction.
F represents the employee’s final average salary.
Z represents the employee’s years of eligible service calculated on a daily basis, during the period commencing on the taxable date and ending on 30 June 1992.
Division 3
Reductions relating to no-TFN tax—the Act, s 26AB(4)
Division 3 Reductions relating to no-TFN tax—the Act, s 26AB(4)
Division 3 Reductions relating to no-TFN tax—the Act, s 26AB(4)
10
Reductions relating to no-TFN tax
10 Reductions relating to no-TFN tax
10 Reductions relating to no-TFN tax
(1) For the Act, section 26AB(1)(d), the benefit provided by the Act, section 22, including a benefit preserved under the Act, section 24, is prescribed.
(2) STC must—
(a) create a debt account in the Fund for each employee or former employee whose benefit is liable to be reduced under the Act, section 26AB, and
(b) have regard to the debt account when determining the amount of the reduced benefit.
Note—
Under the Act, section 26AB(3), the amount of the reduced benefit is to be determined by STC after obtaining actuarial advice.
11
Provision of information
11 Provision of information
11 Provision of information
STC must, at least once a year—
(a) give each employee and former employee for whom a debt account is established under section 10 a statement of the account balance, and
(b) if a tax file number has not been previously given to STC for an employee or former employee—request the employee or former employee give the employee’s or former employee’s tax file number to STC.
Part 3
Family law provisions—the Act, s 27AL
Part 3 Family law provisions—the Act, s 27AL
Part 3 Family law provisions—the Act, s 27AL
12
Definition
12 Definition
12 Definition
In this part—
employee includes a former employee.
13
Valuation of superannuation interests—the Act, s 27AL(g)
13 Valuation of superannuation interests—the Act, s 27AL(g)
13 Valuation of superannuation interests—the Act, s 27AL(g)
Prescribed period for non-employee spouses to nominate
14 Prescribed period for non-employee spouses to nominate
14 Prescribed period for non-employee spouses to nominate
For the Act, section 27AJ(5)(a) and (b), the prescribed period is 60 days after notice is given to a non-employee spouse under section 15(1).
15
Notice when entitlement becomes payable—the Act, s 27AL(e)
15 Notice when entitlement becomes payable—the Act, s 27AL(e)
15 Notice when entitlement becomes payable—the Act, s 27AL(e)
(1) STC must give an employee and a non-employee spouse written notice if the employee’s superannuation interest is subject to a payment split.
(2) The notice must be given—
(a) for a payment split under a superannuation agreement or flag lifting agreement—within 28 days after the operative time for the payment split, or
(b) for a payment split under a splitting order—within 28 days after the later of the following—
(i) the operative time for the payment split,
(ii) the day STC receives the order.
(3) The notice given to the employee must specify the following—
(a) the estimated amount of the non-employee spouse’s family law superannuation entitlement,
(b) how the amount was calculated,
(c) the period within which the amount will be paid,
(d) the estimated effect of the payment on the employee’s entitlement under the State Authorities Non-contributory Superannuation Scheme.
(4) The notice given to the non-employee spouse must—
(a) specify the following—
(i) the estimated amount of the non-employee spouse’s family law superannuation entitlement,
(ii) how the amount was calculated,
(iii) the circumstances in which the amount may be paid or released to the non-employee spouse,
(iv) the circumstances in which the amount must be transferred or rolled over to a complying superannuation fund or an RSA, and
(b) require the non-employee spouse to, within the period prescribed under section 14—
(i) if the non-employee spouse meets a circumstance for payment or release—provide details as to the required payment method, or
(ii) otherwise—nominate a complying superannuation fund or an RSA for the transfer or rollover of the amount, and
(c) specify that the amount will be credited to the Aware Super Fund if, within the period prescribed under section 14—
(i) the details are not provided, or
(ii) the nomination is not made.
(5) STC is not required to give notice if the superannuation interest ceases to be subject to a payment split within the notice period specified in subsection (2).
(6) In this section—
operative time has the same meaning as in the Family Law Act 1975 of the Commonwealth, Part VIIIB.
16
Family law superannuation payments—the Act, s 27AL(f)
16 Family law superannuation payments—the Act, s 27AL(f)
16 Family law superannuation payments—the Act, s 27AL(f)
(1) STC must pay a family law superannuation payment within the following periods—
(a) for a payment in the circumstance specified in the Act, section 27AJ(3)(a)—as soon as practicable after receiving notice from the non-employee spouse,
(b) for a payment in the circumstance specified in the Act, section 27AJ(3)(b)—within 30 days after receiving the non-employee spouse’s nomination of a complying superannuation fund or RSA,
(c) for a payment in the circumstance specified in the Act, section 27AJ(5)—within 30 days after the end of the period prescribed under section 14.
(2) STC must, within 28 days after taking an action specified in subsection (1), give the employee and non-employee spouse a written notice stating the following—
(a) that STC paid, released, transferred or rolled over the non-employee spouse’s superannuation entitlement,
(b) the amount of the entitlement,
(c) how the amount was calculated,
(d) for the notice given to the employee—the estimated amount of adjustment made to the benefit of the employee,
(e) for the notice given to the non-employee spouse, if the amount was transferred or rolled over to a superannuation fund or an RSA—the name and contact details of the superannuation fund or RSA.
Note—
See the Family Law (Superannuation) Regulations 2025 of the Commonwealth, regulation 98 in relation to the fees STC may charge in relation to certain actions taken under this section.
17
Reduction of benefits of employee—the Act, s 27AL(j)
17 Reduction of benefits of employee—the Act, s 27AL(j)
17 Reduction of benefits of employee—the Act, s 27AL(j)
(1) If a family law superannuation payment is made, the benefit payable to the employee under the Act must be reduced in accordance with this section.
(2) A benefit payable to an employee, including a benefit transferred under the Act, but not including a preserved benefit, must be reduced when the benefit is paid to the employee or transferred.
(3) A preserved benefit must be reduced—
(a) if the benefit is preserved before the family law superannuation payment is made—when the family law superannuation payment is made, or
(b) if the benefit is preserved after the family law superannuation payment is made —when the benefit is preserved.
(4) The benefit must be reduced in accordance with the following calculation—
where—
R is the amount of the reduced benefit.
V is the amount of the benefit that would have been payable to the employee under the Act if the family law superannuation payment had not been made.
A is the ratio of the amount paid in relation to the non-employee spouse to the value of the benefit of the employee when the payment split occurred.
C is the ratio of the benefit accrual at the time of the payment split to the benefit accrual when the benefit is payable, deferred or transferred, as the case requires.
(5) If family law superannuation payments are made to, or in relation to, more than one non-employee spouse, the amount of the reduced benefit must be further reduced by multiplying the reduced benefit by the following reduction factor for each family law superannuation payment—
where—
F is the reduction factor.
A and C have the same meaning as in subsection (4).
(6) In this section—
benefit accrual, for a benefit at a point in time, means the benefit accrual as at that time as determined by STC in accordance with actuarial advice.
made, in relation to a family law superannuation payment, means paid, released, transferred or rolled over to, or in relation to, the non-employee spouse.
preserved benefit means a benefit preserved under the Act, section 24.
value, of a benefit, means the value of the benefit as determined by STC in accordance with actuarial advice.
18
Effect of benefit reductions on pensions and other benefits—the Act, s 27AL(j)
18 Effect of benefit reductions on pensions and other benefits—the Act, s 27AL(j)
18 Effect of benefit reductions on pensions and other benefits—the Act, s 27AL(j)
A benefit payable under the Act to a person on the death of an employee whose benefit has been, or is to be, reduced as a result of a family law superannuation payment must be based on the amount of the reduced benefit.
Part 4
Salary loading—the Act, s 4(1)(a)(i)
Part 4 Salary loading—the Act, s 4(1)(a)(i)
Part 4 Salary loading—the Act, s 4(1)(a)(i)
19
Definitions
19 Definitions
19 Definitions
In this part—
base salary, for an employee, means the remuneration, salary or wages payable to the employee under an award of an industrial tribunal or under an industrial or enterprise agreement, but excluding all additional allowances payable to the employee.
employee’s loading means the loading to be treated as part of an employee’s salary.
relevant period, for an employee, means the period of 12 months ending on 31 December immediately preceding the date on which the salary of the employee is calculated for the Act.
relevant shift means a shift worked by an employee for which a shift allowance is payable by an employer.
20
Determination of loading for shift allowance
20 Determination of loading for shift allowance
20 Determination of loading for shift allowance
An employee’s loading must be determined under whichever of the following applies to the employee—
(a) section 21,
(b) section 22,
(c) section 23.
21
Employee’s loading—calculation based on relevant shifts
21 Employee’s loading—calculation based on relevant shifts
21 Employee’s loading—calculation based on relevant shifts
(1) If an employee is paid shift allowances for shifts the employee has worked during a relevant period, the employee’s loading for the allowances must be determined by reference to the number of relevant shifts the employee is taken to have worked during the relevant period.
(2) The number of relevant shifts an employee is taken to have worked during a relevant period is the number calculated as follows—
where—
N is the number of relevant shifts the employee is taken to have worked during the relevant period.
H is the number of hours per shift regularly required to be worked in relevant shifts during the relevant period.
H0 is the smallest number of hours per shift regularly required to be worked, whether by the employee or a comparable worker, in relevant shifts during any calendar year after 1987, including the relevant period.
S is the sum of—
(a) the number of relevant shifts the employee actually worked during the relevant period, and
(b) the number of relevant shifts the employee would have actually worked during the relevant period but for the employee being on leave, being leave for which a shift allowance or an equivalent allowance or loading, including that part of annualised salary that replaces shift allowance in relation to the employee, is paid.
(3) An employee’s loading in a relevant period is the percentage of the employee’s base salary for the period corresponding to the number of relevant shifts the employee is taken to have worked during the relevant period in the table to this subsection.
Table
| Number of relevant shifts | Percentage of base salary |
| 0–104 | Nil |
| 105–156 | 10% |
| 157–208 | 15% |
| 209 or more | 20% |
22
Employee’s loading—if amounts under agreement more than loading under section 21
22 Employee’s loading—if amounts under agreement more than loading under section 21
22 Employee’s loading—if amounts under agreement more than loading under section 21
(1) An employee’s loading for shift allowances is the total of the amounts the employer pays to the employee as shift allowances for relevant shifts worked by the employee during a relevant period (relevant amounts) if—
(a) there is in force an agreement between, or a practice accepted by, a trade union and the employer of the employee that was in force immediately before 18 December 1987, and
(b) the effect of the agreement or practice is that the relevant amounts are treated as loading for superannuation purposes, and
(c) the total of the relevant amounts is more than the loading determined for the period for the employee in accordance with section 21.
Employee’s loading—if amounts less than loading under section 21
23 Employee’s loading—if amounts less than loading under section 21
23 Employee’s loading—if amounts less than loading under section 21
If the total of the amounts paid or payable to an employee as shift allowances for shifts the employee has worked during a relevant period is less than the loading determined for the period in accordance with section 21, the total of the amounts is the employee’s loading for the allowances.
Part 5
Miscellaneous
Part 5 Miscellaneous
Part 5 Miscellaneous
24
Determination of eligible service—the Act, s 22(3)
24 Determination of eligible service—the Act, s 22(3)
24 Determination of eligible service—the Act, s 22(3)
(1) Eligible service accrued by an employee for a day is the proportion of the day equal to the salary ratio of the employee on the day.
(2) An employee who is on leave without pay that is not prescribed leave has a salary ratio of 0 in relation to the leave.
(3) A continuous period of leave without pay must not be regarded as leave without pay for this section if the period is—
(a) 5 days or less, and
(b) not prescribed leave.
(4) In this section—
leave without pay, for an employee, means a period of leave from employment with an employer, otherwise than on secondment as referred to in the Act, section 4, during which the employee is not entitled to receive payment of salary from the employer.
prescribed leave, for an employee, means leave without pay during which the employee on leave is absent from employment with an employer—
(a) because of a grant of sick leave, or
(b) for a period during which the employee receives periodic payments under an Act providing compensation for workers’ injuries, or
(c) because of a grant of parental leave, or
(d) if—
(i) the absence is under an agreement with the employer for the secondment of the employee, and
(ii) the employee is seconded to employment that is not employment with an employer, or
(e) to enable the employee to perform trade union duties unless, in a particular case, the employer certifies to STC in writing that this paragraph is not to apply, or
(f) to enable the employee to perform duties that the employer certifies to STC in writing to be in the interests of the employer or the State, or
(g) while on service with the naval, military or air forces of the Commonwealth.
25
Death or incapacity benefits for firefighters—the Act, s 27AG(1)(d)
25 Death or incapacity benefits for firefighters—the Act, s 27AG(1)(d)
25 Death or incapacity benefits for firefighters—the Act, s 27AG(1)(d)
(1) For the Act, section 27AE, definition of firefighters award, the Crown Employees (Fire and Rescue NSW Firefighting Staff Death and Disability) Award 2023 is prescribed.
(2) In complying with or giving effect to the firefighters award, STC—
(a) may give information obtained in the administration of the Act about an employee or former employee who is or was a firefighter to the following persons—
(i) Fire and Rescue NSW,
(ii) the trustees of the Death and Disability Superannuation Fund, and
(b) must transfer to the Death and Disability Superannuation Fund an amount required as an offset under the firefighters award.
(3) Despite subsection (2), STC must not give information or transfer an amount unless STC has obtained the employee’s written consent.
(4) In this section—
Death and Disability Superannuation Fund means the fund established in accordance with the firefighters award.
This regulation is the State Authorities Non-contributory Superannuation Regulation 2025.
2 Commencement
2 Commencement
2 Commencement
This regulation commences on 1 September 2025.
Note—
This regulation replaces the State Authorities Non-contributory Superannuation Regulation 2020, which is repealed on 1 September 2025 by the Subordinate Legislation Act 1989, section 10(2).
3 Definitions
3 Definitions
3 Definitions
In this regulation—
base salary, for Part 4—see section 19.
employee, for Part 3—see section 12.
employee’s loading, for Part 4—see section 19.
prescribed benefit, for Part 2, Division 2—see section 6.
relevant period, for Part 4—see section 19.
relevant shift, for Part 4—see section 19.
taxable date, for Part 2, Division 2—see section 6.
the Act means the State Authorities Non-contributory Superannuation Act 1987.
Note—
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
Part 2 Reductions of benefits
Part 2 Reductions of benefits
Part 2 Reductions of benefits
Division 1 Reductions relating to early release of benefits—the Act, s 23B
Division 1 Reductions relating to early release of benefits—the Act, s 23B
Division 1 Reductions relating to early release of benefits—the Act, s 23B
4 Consent to reduction relating to early release of benefit
4 Consent to reduction relating to early release of benefit
4 Consent to reduction relating to early release of benefit
Before releasing a benefit under the Act, section 23(1)(c) on the grounds of severe financial hardship or on compassionate grounds, STC must obtain the employee’s or former employee’s written consent to the reduction of benefits as a consequence of the early release.
Specifies how an employee’s benefit is reduced after a family law payment split, including the variables and ratchet factors to be used and the requirement that STC determine value and accruals in accordance with actuarial advice (s 17).
Prescribes how shift‑loading is to be calculated as part of salary for superannuation purposes, with a defined “base salary” and a table mapping number of relevant shifts to percentage loadings (ss 19-23). Where pre‑1987 agreements or practices treat particular shift allowances as loading, those amounts prevail if greater (s 22).
Prescribes employer contribution percentage for s 16A at 3% for the financial year commencing 1 July 2025 and each subsequent year (s 26).
The regulation delegates significant quantitative and discretionary tasks to STC, including setting the interest rate on debt accounts (s 5(6)), determining actuarial values and accruals (s 5(5), s 17(6)), creating and managing debt accounts and running notification processes (ss 5, 10-11, 15-16). The text also identifies the Commonwealth Family Law instruments as governing valuation methods (s 13) and flags that Commonwealth family law regulation 98 bears on fees STC may charge (s 16 note). All references below cite the regulation’s provisions.
Main concepts
The regulation organises around a small set of technical concepts that control when and how members’ benefits are reduced, how shift‑based allowances are folded into “salary” for superannuation calculations, and how family law splitting and employer contributions are processed.
Key concepts defined in the regulation include:
STC. The regulation repeatedly instructs “STC must” carry out actions (for example, ss 4, 5, 10, 11, 15, 16). The regulation does not expand on the acronym; STC is the decision‑maker and administrator under the instrument. The duties and discretion allocated to STC are central to implementation.
Prescribed benefit and taxable date. Division 2 defines “taxable date” as the date on which STC is liable to pay income tax under a Commonwealth taxation law for employers’ contributions (s 6). “Prescribed benefit” is defined as benefits provided under ss 22 and 26E, including preserved benefits under ss 24 and 26F, except where payable on death immediately following employment (s 7). The prescribed benefit concept triggers the calculation rules in ss 8-9.
Debt account and amount debited. The regulation requires the creation of a debt account where an early release benefit is paid and the basic benefit is not preserved (s 5(3)). “Amount debited” is defined to include the early release benefit plus interest at a rate determined by STC (s 5(6)). For no‑TFN tax liability reductions, STC must create a debt account for each affected person (s 10(2)).
Early release consent and preserved benefit impact. STC must obtain written consent from an employee or former employee before releasing an early release benefit and reducing benefits as a consequence (s 4). If an early release benefit is released to a former employee with a preserved basic benefit, STC must reduce the amount of the preserved basic benefit on and from the date of release and when payable (s 5(2)). If not preserved, a debt account mechanism applies (s 5(3)-(4)).
Actuarial advice. Multiple sections require or permit STC to obtain and act on actuarial advice when determining reductions or values: s 5(5) allows STC to obtain actuarial advice for reductions; s 10 note and s 17(6) explicitly require STC to determine value and benefit accruals in accordance with actuarial advice.
Family law compatibility and valuation. The regulation ties valuation of superannuation interests for family law purposes to the Commonwealth approval specified in the Family Law superannuation instruments (s 13). Where a payment split occurs, STC has specified notification duties, defaults (credit to Aware Super Fund where no nomination), and timing requirements (ss 14-16).
Shift loading and base salary. The regulation defines “base salary” as remuneration under awards or agreements excluding additional allowances (s 19). It provides a three‑part schema (ss 21-23) to determine the “employee’s loading” to be treated as part of salary. Section 21 sets a formulaic approach based on “relevant shifts” and a graduated table mapping ranges of shifts to percentage loadings. Sections 22 and 23 create exceptions where pre‑1987 agreements treat allowances as loading (s 22) or where total actual shift allowances are less than the section 21 loading (s 23).
These concepts allocate responsibilities and determine monetary outcomes. STC has persistent recordkeeping and accounting obligations (debt accounts, statements, notices) and holds rate and valuation discretion but must often act after obtaining actuarial advice. Employees, former employees and non‑employee spouses are assigned tasks that affect the timing and amount of payments: providing written consent for early release reductions (s 4), giving tax file numbers when requested (s 11), and, for non‑employee spouses, nominating transfer destinations within a prescribed period (s 14).
Who it affects
The regulation affects four primary groups: STC (the named administrator), employees and former employees covered by the State Authorities Non‑contributory Superannuation Act 1987, non‑employee spouses involved in family law splits, and employers (through record provision and a prescribed employer contribution percentage).
STC. The regulator places administrative duties and discretionary powers on STC. STC must obtain written consents (s 4), create and manage debt accounts (ss 5(3), 10(2)), determine reductions and actuarial values (ss 5(5), 17(6)), set interest rates on debt accounts (s 5(6)), send periodic statements and notices (ss 11, 15, 16), implement payment and rollover procedures for family law entitlements (s 16) and credit funds to Aware Super where non‑employee spouses fail to nominate (s 15(4)(c)). These obligations create operational and disclosure workloads for STC, and grant it determinations that materially change member entitlements.
Employees and former employees. They are affected in several, concrete ways:
Early release. Before STC can reduce benefits after an early release on grounds of severe financial hardship or compassionate grounds, STC must obtain the employee’s or former employee’s written consent (s 4). The consequence is that employees must sign away future entitlements if they want early access.
Debt accounts and reductions. If an early release benefit is not matched by preserved basic benefit treatment, a debt account will be created and future benefits reduced by the amount debited plus interest as set by STC (s 5(3)-(6)). Employees with preserved benefits will see their preserved basic benefit reduced from the date of release (s 5(2)) and at payment (s 5(2)(b)).
TFN issues. Where no tax file number has been given, STC will create a debt account for reductions relating to no‑TFN tax and must request TFNs at least annually; employees who fail to supply TFNs face account reductions under the scheme (ss 10-11).
Family law splits. Employees whose superannuation interests are subject to a payment split will receive notice within 28 days specifying the estimated effect on their entitlement and calculations used (s 15(2)-(3)). Their benefit will be reduced in line with the formulas in s 17.
Shift loading. Employees whose remuneration includes shift allowances must have those loadings calculated under the relevant sections (ss 19-23). The way “base salary” is defined may exclude allowances, but the loading rules then fold certain shift allowances back into the salary base for superannuation calculation.
Non‑employee spouses. The regulation prescribes a 60‑day nomination period after notice is given to a non‑employee spouse (s 14). STC must give non‑employee spouses detailed notices including estimated amounts, how calculated, circumstances for payment or release and transfer requirements, and require nomination of a complying fund or RSA within the prescribed period (s 15(4)). If a non‑employee spouse fails to nominate within that period, the sum will be credited to the Aware Super Fund (s 15(4)(c)). STC must action family law payments within specified timeframes and notify both parties of outcomes and transfer details (s 16).
Employers. Employers are indirectly affected by record and certification duties. Employer records feed STC’s loading calculations: s 21 uses hours per shift regularly required, and s 24 requires employers to certify when leave without pay should or should not be regarded as prescribed leave. Employers also bear the cost impact of the employer contribution percentage prescribed for s 16A at 3% from the financial year starting 1 July 2025 and thereafter (s 26).
Other stakeholders. The regulation also references external Commonwealth instruments: valuation for family law purposes is to be determined in accordance with the Family Law (Superannuation) Approval 2025, Schedule 2, Part 9 (s 13). Fees STC may charge in relation to some family law actions are identified as governed by Commonwealth regulation 98 (s 16 note). These references mean that practitioners must cross‑check the Commonwealth instruments for operational detail.
Who pays and who decides. STC decides valuation methods, interest rates on debt accounts and actuarial determinations (ss 5(5), 5(6), 17(6)). Affected individuals (employees, former employees) bear financial cost where debt accounts are created or preserved benefits reduced (s 5), where family law splits reduce employee benefits (s 17), and where employees fail to provide TFNs (s 11). Employers pay the employer contribution percentage prescribed (s 26) and must support certification and records requested by STC (s 24).
Key duties and rights
The regulation assigns specific duties to STC, obligations on employers and recordkeeping and consent rights to employees and non‑employee spouses. Below are the principal duties, rights and the timing constraints attached to them, with section references.
Duties imposed on STC
Obtain written consent before reducing benefits as a consequence of early release on grounds of severe financial hardship or compassionate grounds (s 4). STC cannot lawfully reduce benefits as a consequence of such an early release without that written consent.
When a preserved basic benefit exists at the time of early release, reduce the preserved basic benefit on and from the date of release and at payment (s 5(2)). Where the basic benefit is not preserved, STC must create a debt account and reduce future benefit payments by the amount debited (s 5(3)).
Charge interest on debt accounts at a rate determined by STC (s 5(6)). The regulation gives STC both a duty to create debt accounts and discretion to set the rate of interest applied to them.
Obtain actuarial advice when determining reductions and when valuing benefits and accruals (s 5(5), s 17(6)). The regulation permits STC to solicit actuarial advice and requires actuarial advice to underlie certain valuations.
Create and manage debt accounts for no‑TFN tax reductions and notify affected people at least annually of the account balance; if a TFN is not on file, STC must request it (ss 10-11).
Provide written notices in family law cases. STC must notify employee and non‑employee spouse where a superannuation interest is subject to a payment split. Timing is specified: within 28 days after the operative time for a payment split under a superannuation or flag lifting agreement, or within 28 days after the later of operative time and the day STC receives a splitting order (s 15(2)). The notice contents are spelled out (s 15(3)-(4)).
Make family law payments within specified windows: as soon as practicable after notice in certain circumstances, or within 30 days after receiving a nomination or the end of prescribed period (s 16(1)). Notify both parties within 28 days after taking the action (s 16(2)).
Reduce employee benefits in accordance with the formulas and ratios provided when a family law payment is made (s 17). For multiple payments to multiple non‑employee spouses, apply the multiplicative reduction factors in s 17(5).
Rights, choices and obligations for employees, former employees and non‑employee spouses
Written consent. Employees or former employees have a right to be asked for written consent before STC reduces benefits as a consequence of an early release under s 23(1)(c) of the Act (s 4). Practically, this is a point where the person can negotiate or seek advice before accepting a reduction of future benefits.
TFN provision. Employees and former employees have an obligation to provide a tax file number to STC if requested. STC must request TFNs at least annually where a debt account under s 10 exists (s 11(a)-(b)). Failure to provide a TFN triggers STC processes for no‑TFN tax reductions (s 10).
Non‑employee spouse nomination. Non‑employee spouses have the right to nominate a complying superannuation fund or RSA for transfer/rollover of family law entitlements within the prescribed 60‑day period after notice (ss 14, 15(4)). If they do not nominate, the amount will be credited to the Aware Super Fund (s 15(4)(c)).
Periods and notices. Both employees and non‑employee spouses are entitled to receive specific information in notices about calculations, estimated amounts, circumstances of payment/release and transfer instructions, and must receive notices within prescribed timeframes (s 15(3)-(4), s 16(2)).
Employer duties and rights
Salary certification and records. Employers must provide the salary and shift records STC requires to determine “base salary”, “relevant shifts” and salary ratios. Section 19 defines “base salary”. Section 24 requires employers to certify, in writing to STC, when particular leave periods should be treated as prescribed leave or otherwise.
Employer contribution percentage. For the Act, s 16A(3), the regulation prescribes 3% as the employer contribution percentage for the financial year starting 1 July 2025 and each following financial year (s 26). Employers therefore face a rule for contribution rates set in the regulation.
Decision points and discretion
STC has discretion to determine actuarial measures and to set interest rates on debt accounts (ss 5(5)-(6), s 17(6)). These are significant levers that affect the monetary value of reductions and the pace of recovery from debt accounts.
STC selects, within prescribed methods, how to calculate “value”, “benefit accrual” and to apply reduction factors in family law contexts; those determinations must be made in accordance with actuarial advice (s 17(6)).
Timing constraints
Consent for early release must be obtained before release (s 4).
Notices of payment splits must be given within 28 days (s 15(2)).
Family law payments must be made within the specified windows (s 16(1)) and STC must notify within 28 days after action (s 16(2)).
Non‑employee spouses have 60 days from notice to nominate transfer details (s 14).
STC must provide annual statements for debt accounts created under s 10 (s 11).
These duties and rights shape behaviour: STC will need processes and systems to capture written consents, create and manage debt accounts and actuarial inputs and to issue prescribed notices on tight timetables. Employers will need to maintain shift and leave records and be prepared to certify certain leave types to protect members’ eligible service calculations (s 24). Employees and non‑employee spouses will need to supply TFNs and respond within prescribed periods to avoid default outcomes under ss 11 and 15.
Penalties and enforcement
The regulation itself does not create new criminal offences or specify penalty amounts. Its enforcement model is administrative: it prescribes duties, creates recordkeeping, notice and actuarial‑based valuation obligations, and sets consequences for non‑compliance by the affected parties in the form of reductions, transfers and default allocations. Where the regulation uses mandatory language (“must”) it imposes binding statutory duties on STC, employers and affected individuals within the operation of the State Authorities Non‑contributory Superannuation Act 1987 and related supervisory frameworks.
Enforcement mechanisms and operational consequences in the regulation
Administrative reductions and debt account enforcement. Where an early release benefit is paid and the basic benefit is not preserved, STC must create a debt account and reduce future benefits by amounts debited to that account, including interest at a rate set by STC (s 5(3)-(6)). The enforcement consequence for the member is a decrease in future payable benefits; for STC the enforcement task is to maintain the debt account and apply it against future payments.
No‑TFN tax reductions. For the Act, s 26AB reductions in relation to no TFN tax, STC must create debt accounts and have regard to those accounts when determining reduced benefits (s 10). STC must also provide annual statements and request TFNs (s 11). The consequence for a person who does not provide a TFN is that the benefit becomes liable to reduction under the Act; the regulation prescribes the administrative process rather than a separate monetary penalty.
Family law defaults and fund crediting. If a non‑employee spouse does not provide the required nomination within the prescribed period, the regulation requires STC to credit the amount to the Aware Super Fund (s 15(4)(c)). That is a statutory default outcome; it is an enforceable administrative outcome rather than a civil fine.
Duty to obtain consents. STC must obtain the employee’s written consent before releasing benefits under the specified grounds and reducing benefits as a consequence (s 4). Failure to obtain that consent would leave STC open to challenge under the underlying Act. The regulation requires the consent step as a precondition. Although the regulation does not specify a sanction for failing to obtain consent, the statutory requirement makes the release and reduction procedurally non‑compliant.
Discretion and accountability
STC discretion in interest rates and actuarial determinations (s 5(6), s 5(5), s 17(6)) is not accompanied by detailed statutory limits on the exercise of that discretion in this regulation. STC’s exercise of discretion will therefore be reviewable under the Act and administrative law principles. The regulation requires actuarial advice in key places, creating an evidentiary foundation which may be relevant in any review or dispute.
Time limits for notices and payments (ss 15-16) create enforceable performance standards for STC. Where STC fails to meet the 28‑day notice or 30‑day payment windows it will be failing statutory duties; remedies and administrative responses will derive from the Act and broader administrative law, not from penalty provisions in this regulation.
Interaction with Commonwealth taxation and family law
The regulation explicitly ties obligations to Commonwealth taxation law by reference to “taxable date” defined in s 6, and to Commonwealth family law valuation instruments by reference in s 13. Non‑compliance with TFN requirements has tax consequences under Commonwealth law; the regulation supports STC administrative measures to give effect to those tax rules.
The note to s 16 signals that Commonwealth regulation 98 governs fees STC may charge for certain family law actions. Any fee disputes or enforcement of charging powers will therefore implicate Commonwealth family law regulations rather than penalty regimes embedded in this regulation.
Practical enforcement exposure
The regulation creates operational exposures for STC where it must maintain accurate debt accounts, issue annual statements to affected persons (s 11), and provide timely notices (s 15). Failure to perform those duties can be litigated or subject to administrative review under the Act or other supervisory regimes.
Employers and certifying officers face exposure where inaccurate certification of leave without pay affects eligible service calculations (s 24). The regulation makes the certification task material to the proper calculation of eligible service.
In sum, the regulation relies on administrative enforcement and statutory outcome changes (reductions, default credits, debt account debits) rather than monetary penalties. The obligations on STC and employers are expressed in mandatory terms, and non‑performance will give rise to statutory non‑compliance consequences enforceable through the Act and normal administrative law channels.
How it interacts with other laws
The regulation is expressly drafted to operate alongside and reference other statutory instruments, both Commonwealth and State. Its provisions cross‑reference the State Authorities Non‑contributory Superannuation Act 1987 (the Act), Commonwealth taxation laws and Commonwealth family law instruments. These cross‑references define jurisdictional responsibilities, valuation methods and fee rules.
Interaction with the Act
The regulation operates as subordinate legislation to the Act. Numerous sections open with references to provisions in the Act and prescribe methods, periods or definitions relevant to those Act provisions (for example, Division 1 is described as “Reductions relating to early release of benefits,the Act, s 23B”). The regulation does not displace the Act; it implements and fills in detail for actuarial methods, notice periods and administrative steps. Practitioners must therefore read the regulation together with the Act.
Interaction with Commonwealth taxation law
“Taxable date” is defined for Division 2 as the date on which STC is liable to pay income tax under a Commonwealth taxation law for employer contributions to the Fund (s 6). The examples given cite the Commonwealth Income Tax Assessment Acts (s 6 note). The regulation therefore relies on Commonwealth tax timing to determine which periods and service years are relevant for reductions and valuation formulas (ss 8-9). Outcomes under the regulation (such as creation of debt accounts in relation to no‑TFN tax, s 10) are designed to give effect to tax liabilities that arise under Commonwealth law.
Interaction with Commonwealth family law
The valuation of superannuation interests for family law purposes is to be determined in accordance with the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025, Schedule 2, Part 9, as made under the Family Law (Superannuation) Regulations 2025 of the Commonwealth (s 13). The regulation therefore imports the Commonwealth methodology for valuation, ensuring consistency with the family law regime.
The regulation prescribes notice and timing obligations to give effect to the Act’s family law provisions and signals that fees STC may charge are subject to Commonwealth Family Law Regulations, regulation 98 (s 16 note). That means practitioner advice in family law matters must cross‑check the Commonwealth rules for valuation, fee limits and rights to nominate or receive payment.
Interaction with industrial instruments and awards
For the salary loading rules, “base salary” is defined as remuneration payable under an award of an industrial tribunal or under an industrial or enterprise agreement (s 19). Section 22 preserves pre‑18 December 1987 agreements or practices which treat certain shift allowances as loading for superannuation purposes; it also defines “trade union” for that provision using both a State industrial statute and the Commonwealth Fair Work (Registered Organisations) Act 2009 (s 22(2)). That interlocks this regulation with industrial relations instruments and historical bargaining arrangements.
Interaction with the Subordinate Legislation Act 1989
The commencement note in s 2 explains the replacement of the 2020 regulation and the repeal mechanism under the Subordinate Legislation Act 1989, s 10(2). The savings provision in s 27 preserves acts or things done under the repealed regulation to continue under the new regulation, indicating clean transitional obligations.
Operational cross‑checks required by practitioners
The regulation frequently requires STC to obtain actuarial advice (ss 5(5), 17(6)). Actuarial opinions often rely on assumptions that cross legal and accounting domains, and their legal effect will be tested in the context of the Act and under administrative law.
Family law valuation and fee limits are set out in Commonwealth instruments that the regulation imports by reference (s 13 and s 16 note). Where the Commonwealth instruments change, STC must follow the Commonwealth rules for valuation and fees in respect of family law splits.
The regulation creates administrative links between taxation compliance (TFNs), superannuation benefit calculations and family law splits. Practitioners must ensure clients understand the interplay: a missing TFN can trigger reductions under Commonwealth tax law implemented through STC’s administrative processes under ss 10-11; a family law splitting order will interact with valuation methods mandated by Commonwealth family law instruments (s 13) and STC’s obligation to notify and transfer amounts within specific windows (ss 15-16).
In essence, the regulation functions as a detailed implementation layer that must be read alongside the Act, Commonwealth taxation statutes, Commonwealth family law regulations and industrial awards. Its operational coherence depends on STC and employers aligning their practices with those other instruments.
Amendment history
The regulation contains minimal explicit amendment history in the text provided. The following items are recorded in the instrument itself and are the regulation’s own transitional and commencement statements.
Commencement and replacement
The regulation commences on 1 September 2025 (s 2). The commencement note states that it replaces the State Authorities Non‑contributory Superannuation Regulation 2020, which is repealed on 1 September 2025 by the Subordinate Legislation Act 1989, s 10(2) (s 2 note). This identifies the 2025 instrument as the successor to the 2020 regulation, effective from that date.
Savings provision
Section 27 is a savings clause. It provides that any act, matter or thing that immediately before the repeal of the 2020 regulation had effect under that regulation continues to have effect under the new regulation (s 27). That clause preserves rights and obligations already in place at the point of transition, avoiding immediate disruption to existing arrangements.
Prescriptive updates included in this instrument
Employer contribution percentage. The regulation prescribes a 3% salary percentage for employer contributions under the Act, s 16A(3), for the financial year starting 1 July 2025 and each following financial year (s 26). That is a definitive setting of employer contribution percentage effective in the stated financial years.
Family law valuation cross‑reference. The regulation updates the valuation method to be the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025, Schedule 2, Part 9, made under the Family Law (Superannuation) Regulations 2025 (s 13). That cross‑reference embeds then‑current Commonwealth family law methodology in the calculation framework.
Other operational modernisations. The regulation replaces and re‑states numerous operational rules: consent requirements for early release and benefit reductions (s 4), debt account processes and interest setting by STC (s 5), TFN‑driven reductions and annual statements (ss 10-11), and detailed family law notice and payment timing (ss 15-16). The instrument therefore refreshes the administrative rules for when STC may reduce or transfer funds, who must be notified and the timing of those actions.
Absence of other amendment notes
The text includes no schedule of prior amendments or a table of prior versions beyond the commencement note and savings clause. There are no listed changes to the Act itself inside this regulation; the instrument is intended to be read as subordinate to, and implementing, the Act.
Practical consequence for advisers
Because the regulation takes effect on a single nominated commencement date and provides a savings clause, practitioners should apply its rules to decisions and operations on or after 1 September 2025 while checking transitional arrangements preserved by s 27 for any acts performed before that date. For employer contribution planning, s 26 fixes the employer percentage at 3% starting 1 July 2025 and in subsequent years, so employers must align payroll and accounting treatment for that financial year.
If further amendment history is needed (previous versions, consultation documents, explanatory memoranda) that material is not included in the provided text. The instrument itself supplies the commencement, repeal and saving mechanics referenced above.
Litigation history
The regulation text provided contains no references to litigation, court decisions or judicial interpretations. It does not recount any case law, nor does it cite any judicial pronouncements deciding the meaning or application of its provisions. The instrument instead relies on statutory cross‑reference to the Act and to Commonwealth instruments for valuation and fee rules.
Consequences for practitioners
Because no litigation history is recorded in the regulation, there is no body of authoritative judicial interpretation embedded in this text that can be relied upon to resolve ambiguities in operation. Interpreting and testing the regulation’s discretionary elements, such as STC’s determination of actuarial values and interest rates on debt accounts (ss 5(5)-(6), s 17(6)), will therefore require procedural prudence and may eventually generate disputes that will be resolved under the Act or through administrative review or litigation.
Family law valuation references are to Commonwealth instruments (s 13). Where valuation disputes arise in family law proceedings, practitioners will need to rely on the valuation methodology and factors contained in the Commonwealth Family Law superannuation instruments and any developing case law under family law regimes, rather than on any state litigation under this regulation.
Areas likely to produce disputes
Interest rates and debt account calculations. The regulation permits STC to set the interest rate for amounts debited to debt accounts (s 5(6)). Disputes may arise over whether interest rates were reasonable or appropriately disclosed and whether actuarial advice was properly obtained and applied (s 5(5)).
Application of debt accounts vs preserved benefit reductions. The choice between reducing a preserved basic benefit or creating a debt account (s 5(2)-(3)) could give rise to disputes over whether a benefit was “preserved” at the relevant time and whether STC applied the correct sequence of adjustments.
Family law valuation and reduction formulas. The regulation requires STC to determine “value” and “benefit accrual” in accordance with actuarial advice (s 17(6)) and specifies reduction formulas (s 17(4)-(5)). Disputes in family law proceedings often centre on valuation assumptions, periods and accrual rates. Since the regulation imports Commonwealth valuation methods (s 13), litigation over valuation typically will connect to family law courts and the Commonwealth framework.
What the absence of litigation history implies
Practitioners cannot rely on precedent within the regulation text itself. Advice to clients must therefore flag uncertainty where the regulation delegates discretion to STC and where actuarial judgements materially affect benefits. Where questions of statutory interpretation arise, the underlying Act and administrative law principles will govern resolution.
In short, the regulation supplies no litigation history. Any legal challenges or interpretative disputes will emerge in later cases or reviews and will need to be litigated against the backdrop of the Act and the Commonwealth family law and taxation instruments referenced in the regulation.
Gotchas
The regulation contains several technical features and default rules that can produce unintended outcomes if overlooked. The following are concrete operational traps and compliance hazards that arise directly from the text.
Written consent prerequisite for early release reductions (s 4)
STC must obtain the employee’s or former employee’s written consent before releasing an early release benefit under the Act, s 23(1)(c) on grounds of severe financial hardship or compassionate grounds and reducing benefits as a consequence (s 4). Practitioners often assume administrative release can proceed without explicit written consent; the regulation makes written consent a statutory precondition. Failure to obtain written consent may leave STC unable to lawfully reduce benefits and expose the release to challenge.
Debt account vs preserved benefit sequencing (s 5(2)-(4))
Where a basic benefit is preserved at time of early release, STC must reduce the preserved basic benefit on and from the date of release and when payable (s 5(2)). If the basic benefit is not preserved, STC must create a debt account (s 5(3)). There is a transitional rule in s 5(4) dealing with benefits preserved after release but before payment: on preservation STC must reduce the preserved benefit by the amount debited to the debt account and reduce the payable benefit by that amount at payment. Mistakes in sequencing, or misclassification of a benefit as preserved or not, will change whether a debt account or immediate reduction applies.
Interest rate discretion for debt accounts (s 5(6))
The regulation defines “amount debited” to include interest on the early release amount at a rate determined by STC (s 5(6)). STC sets the rate. From a member’s perspective, interest on the debt account can materially increase the amount of future reductions. From STC’s perspective, this is discretionary and must be set and documented; poor publicity or perceived unfairness may produce disputes. There is no formula or cap in the regulation for this rate.
No‑TFN reductions and annual TFN requests (ss 10-11)
STC must create a debt account for each employee or former employee whose benefit is liable to be reduced under Act, s 26AB (s 10(2)) and must give a statement of account balance at least once a year and request TFNs where not previously provided (s 11). Employees who have not supplied TFNs should expect annual requests and the prospect of administrative reductions. Failure to respond may trigger reductions derived from Commonwealth tax consequences.
Defaults for family law nominations and Aware Super Fund (s 15(4)(c))
If a non‑employee spouse does not provide required details or does not nominate a complying fund or RSA within the 60‑day prescribed period, STC will credit the amount to the Aware Super Fund (s 15(4)(c)). Non‑employee spouses who miss the nomination window will lose the ability to direct rollover and will receive a default allocation. The regulation sets a short 60‑day window (s 14) and compulsory defaulting to a named receiving fund.
Timing obligations for family law notices and payments (ss 15-16)
STC must give notices within 28 days in family law splits (s 15(2)) and must make payments within short windows: as soon as practicable or within 30 days after receiving nominations or after the end of the prescribed period (s 16(1)). Missing these windows may create statutory non‑compliance and potential disputes, particularly where timing affects the valuation of benefits.
Actuarial dependence and measurement risk (ss 5(5) and 17(6))
Reductions and values must be determined in accordance with actuarial advice (s 5(5), s 17(6)). Actuarial assumptions materially affect the amount of reductions and benefit accruals. Parties must anticipate that STC will seek and rely on such advice, and that disputes may centre on actuarial assumptions, discount rates, or service calculations.
Definition of base salary and what is excluded (s 19)
“Base salary” excludes “all additional allowances payable to the employee” under s 19. Yet the regulation folds particular shift loadings back into salary when calculating an employee’s loading (ss 21-23). Advisers must watch the interaction between base salary exclusions and the loading regime. Errors in determining which allowances are “additional” and which are to be treated as loading for superannuation purposes will affect base salary and thus benefit calculations.
Pre‑1987 agreements exception (s 22)
Section 22 preserves pre‑18 December 1987 agreements or practices that treat certain shift allowances as loading. Where such agreements exist and the total relevant amounts paid exceed the section 21 loading, the agreement amounts operate as loading. Failure to identify or produce such historical agreements can cause under‑ or over‑inclusion of loading in the superannuation salary base.
Employer contribution fixed percentage from 1 July 2025 (s 26)
Employers should not assume previous contribution percentages continue. For the Act, s 16A(3), the regulation fixes 3% for the financial year from 1 July 2025 and each following financial year (s 26). Payroll and budgeting must be adjusted to reflect this rate.
Recordkeeping and certification for leave without pay and eligible service (s 24)
Eligible service accrual depends on salary ratio and whether leave without pay is “prescribed leave” (s 24). Employers must certify leave circumstances in writing to STC when required by the section (s 24(4)(d)-(f)). Mistakes or missing certifications can reduce eligible service and therefore future benefits.
These “gotchas” are operational levers embedded in the regulation. They shift costs and decision points to STC, employers and affected persons, and they rely on prompt action, accurate records and use of actuarial advice. Practitioners should treat each listed clause as a specific compliance trigger and document any discretionary choices or default consequences when advising clients.
How to comply
This section sets out practical compliance steps and checklists for the main actors: STC (administrator), employers, employees/former employees and non‑employee spouses. Each step is rooted in the regulation’s text and cites the relevant provisions.
For STC (administrator duties)
Written consents for early release. Establish a documented process to obtain and retain written consent from an employee or former employee before releasing an early release benefit under the Act on grounds of severe financial hardship or compassionate grounds and before reducing benefits as a consequence (s 4). Retain signed consents in the member’s file and make them a precondition to any reduction entry.
Debt accounts and interest. Implement accounting procedures to create and maintain debt accounts where required by ss 5(3) and 10(2). Ensure the ledger shows the “amount debited”, defined as the early release benefit plus interest at a rate determined by STC (s 5(6)). Adopt a documented policy for setting the interest rate and record the actuarial rationale or administrative basis for the rate.
Actuarial input and transparency. For any reduction calculations under ss 5, 8-9, 17, obtain and document actuarial advice as contemplated in ss 5(5) and 17(6). Maintain the actuarial reports in the member record and be prepared to disclose the assumptions used in valuation notices required under s 15 and s 16.
Notices and family law processes. Build a compliance calendar to meet the 28‑day notice obligation in s 15(2) and the payment windows in s 16(1). The content of notices is prescribed (s 15(3)-(4)). Use standardised templates that include estimated amounts, calculation methods, payment periods, the effect on the employee’s entitlement and nomination instructions for non‑employee spouses. Include instruction that Aware Super will be the default receiving fund if the non‑employee spouse does not nominate (s 15(4)(c)).
Annual statements and TFN requests. Where debt accounts have been created under s 10, deliver statements of the account balance at least annually to each employee and former employee (s 11(a)). If a TFN has not previously been provided, request the TFN in writing (s 11(b)). Track responses and follow up where TFNs are not supplied.
Family law payment execution. Have procedures to receive non‑employee spouse nominations and to transfer or roll over amounts within 30 days where required (s 16(1)(b)-(c)). After making a payment or transfer, send the required written notices to both employee and non‑employee spouse within 28 days stating amounts, how calculated and adjustments to employee entitlements (s 16(2)(a)-(e)). Be aware of Commonwealth Family Law Regulations, including regulation 98 on fees, and align fee charging practices accordingly (s 16 note).
Loading and salary calculations. Implement rules for calculating “base salary”, “relevant period”, “relevant shift” and “employee’s loading” per Part 4 (ss 19-23). For each employee, compute relevant shifts and loading percentages using the prescribed formula and table in s 21. Maintain evidence of hours per shift, number of shifts actually worked and shifts that would have been worked but for prescribed leave (s 21(2)). For employees covered by pre‑1987 agreements, check whether the agreement treats relevant amounts as loading for superannuation and, if so, apply s 22 rule where it yields a higher loading.
Eligible service and leave certifications. Track leave without pay and salary ratios for eligible service computations (s 24). For leave that may be treated as prescribed leave, collect employer certifications required under s 24(4)(d)-(f). Implement internal guidance so that continuous periods of leave without pay of five days or less are not treated as leave without pay for the purposes of s 24(3), unless otherwise relevant.
Record retention and audit trail. Maintain full records of debt accounts, written consents, actuarial advice, notices issued (family law and TFN), TFN requests and responses, shift records and employer certifications. These records will be essential in any administrative review or dispute.
For employers
Payroll and records. Maintain accurate payroll data that distinguishes base salary under awards or enterprise agreements from additional allowances (s 19). Track shift hours, the number of relevant shifts and hours per shift so STC can apply the s 21 calculation. Record periods of leave without pay, and be ready to certify, in writing to STC, whether a period qualifies as prescribed leave under s 24.
Historical agreements. Search corporate and industrial relations archives for any agreements or practices in force immediately before 18 December 1987 that treat shift allowances as loading for superannuation purposes. If such agreements exist and the aggregate amounts paid during a relevant period exceed the s 21 loading, those amounts must be treated as loading per s 22(1).
Employer contributions. Prepare payroll systems to apply the employer contribution percentage of 3% for financial years from 1 July 2025 (s 26). Update employer accounting to reflect the prescribed percentage and reconcile contributions with STC reporting.
For employees and former employees
Providing written consent for early release consequences. If you seek early release on grounds of severe financial hardship or compassionate grounds, be aware STC will require written consent before reducing future benefits (s 4). Seek independent advice before signing to understand the effect of reductions and any debt account interest that may apply (s 5(6)).
Tax file numbers. If you have not supplied your TFN to STC, respond promptly to annual TFN requests to avoid reductions relating to no‑TFN tax (ss 10-11). Keep records of TFN submissions and any STC statements of debt accounts.
Shift records and loading. Keep contemporaneous records of shifts worked, paid shift allowances and any leave taken that would have attracted an allowance or its annualised replacement. These records are necessary to calculate “relevant shifts” and to verify the loading percentage applied under s 21.
Family law nominations. If you are a non‑employee spouse who receives notice that an employee’s superannuation interest is subject to a payment split, act within the 60‑day period prescribed in s 14. Provide required nomination details if you wish to have funds transferred or rolled over to a complying superannuation fund or an RSA. If you do not do so, the amount will be credited to the Aware Super Fund (s 15(4)(c)).
For non‑employee spouses
Timely nomination and documentation. On receipt of notice under s 15, you have 60 days to nominate a fund (s 14). Your nomination must specify transfer/rollover details where applicable (s 15(4)(b)). Keep copies of correspondence. If you miss the 60‑day window, expect a default credit to the Aware Super Fund (s 15(4)(c)).
Understand the notices. The notice must disclose the estimated amount, how calculated and the circumstances for payment or transfer (s 15(4)(a)). Seek actuarial or legal advice if the calculation or valuation appears unclear; STC is required to base valuations on actuarial advice (s 17(6)).
Cross‑party practical checklist
Document management. Ensure secure, searchable records for consents, actuarial reports, TFN requests and responses, debt account balances and notices, and keep them for statutory retention periods applicable under other laws (the regulation does not specify retention periods).
Templates and workflows. Prepare standard templates for STC notices under ss 15 and 16 that contain all required content. Create decision trees for when to create debt accounts (s 5(3)) and when to reduce preserved benefits (s 5(2)).
Audit and review. Institute periodic internal audits to verify timely notice delivery, correct debt account calculations including interest rates, accurate loading computations and proper application of the employer contribution rate (s 26). Reconcile actuarial inputs with the documented basis for valuations.
Compliance risks and mitigation
Actuarial assumptions. Because key calculations depend on actuarial advice (s 5(5), s 17(6)), ensure independent, documented actuarial reports that set out assumptions, discount rates, mortality and service assumptions and sensitivity analyses.
Notice and timing. Use tracked mail or electronic delivery systems and keep proof of dispatch to evidence compliance with the 28‑day and 30‑day timeframes in ss 15-16.
Default allocations. Alert non‑employee spouses explicitly to the 60‑day nomination window and the Aware Super Fund default to avoid unexpected crediting (s 15(4)(c)).
By following the procedural steps above and documenting every discretionary choice STC or an employer exercises, parties will align operational practices with the regulation’s mandatory requirements. Where doubt exists about valuation or actuarial assumptions, obtain independent advice contemporaneously and record the basis for decisions in the member file.
Division 1Reductions relating to early release of benefits—the Act, s 23B
(1) This section applies to the reduction of benefits payable under the Act, section 22, 24 or 26E to an employee or former employee to whom a benefit (an early release benefit) has been released under the Act, section 23(1)(c) on the grounds of severe financial hardship or on compassionate grounds.
(2) If an early release benefit is released to a former employee for whom the basic benefit was preserved at the time of the release, STC must—
(a) on and from the date of release, reduce the amount of the preserved basic benefit by the amount of the early release benefit, and
(b) when the preserved benefit is payable, reduce the amount of the benefit by the amount of the early release benefit.
(3) If subsection (2) does not apply, STC must—
(a) create a debt account in relation to the employee or former employee, and
(b) when a benefit is payable, reduce the benefit payable by the amount debited to the debt account.
(4) Despite subsection (3), if an employee’s or former employee’s benefit is preserved after the release of an early release benefit but before the benefit is otherwise payable, STC must—
(a) on and from the date the benefit is preserved, reduce the amount of benefit preserved by the amount debited to the debt account, and
(b) when the preserved benefit is payable, reduce the benefit payable by the amount debited to the debt account.
(5) In determining the amount of a reduced benefit, STC may obtain actuarial advice.
(6) In this section—
amount debited, to a debt account, means the amount of the early release benefit and interest on that amount at a rate determined by STC.
Division 2 Reductions relating to tax liabilities—the Act, s 26A(2)
Division 2 Reductions relating to tax liabilities—the Act, s 26A(2)
Division 2 Reductions relating to tax liabilities—the Act, s 26A(2)
6 Definitions
6 Definitions
6 Definitions
In this division—
prescribed benefit means a benefit prescribed by section 7.
taxable date means the date on which STC is liable to pay income tax under a Commonwealth taxation law for employers’ contributions to the Fund.
For the Act, section 26A(2)(a), the benefits provided by the Act, sections 22 and 26E, including benefits preserved under the Act, sections 24 and 26F, are prescribed unless the benefit is payable as a result of the death of a person who was, immediately before death, an employee.
8 Reduction of basic benefit
8 Reduction of basic benefit
8 Reduction of basic benefit
(1) This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the basic benefit—
(a) is payable to an employee under the Act, section 23, or
(b) is preserved for an employee in accordance with the Act, section 24.
(2) For the Act, section 26A(2)(b), the prescribed method of calculating a reduction is—
where—
R represents the amount of the reduction.
F represents—
(a) if an employee resigns or retires—the employee’s final average salary, or
(b) otherwise—the employee’s final salary.
Z represents the employee’s years of eligible service calculated on a daily basis, commencing on or after the taxable date.
9 Reduction of deferred accrued benefit
9 Reduction of deferred accrued benefit
9 Reduction of deferred accrued benefit
(1) This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the deferred accrued benefit—
(a) is payable to an employee under the Act, section 23, or
(b) is preserved for an employee in accordance with the Act, section 26F.
(2) For the Act, section 26A(2)(b), the prescribed method of calculating a reduction is—
where—
R represents the amount of the reduction.
F represents the employee’s final average salary.
Z represents the employee’s years of eligible service calculated on a daily basis, during the period commencing on the taxable date and ending on 30 June 1992.
Division 3 Reductions relating to no-TFN tax—the Act, s 26AB(4)
Division 3 Reductions relating to no-TFN tax—the Act, s 26AB(4)
Division 3 Reductions relating to no-TFN tax—the Act, s 26AB(4)
10 Reductions relating to no-TFN tax
10 Reductions relating to no-TFN tax
10 Reductions relating to no-TFN tax
(1) For the Act, section 26AB(1)(d), the benefit provided by the Act, section 22, including a benefit preserved under the Act, section 24, is prescribed.
(2) STC must—
(a) create a debt account in the Fund for each employee or former employee whose benefit is liable to be reduced under the Act, section 26AB, and
(b) have regard to the debt account when determining the amount of the reduced benefit.
Note—
Under the Act, section 26AB(3), the amount of the reduced benefit is to be determined by STC after obtaining actuarial advice.
11 Provision of information
11 Provision of information
11 Provision of information
STC must, at least once a year—
(a) give each employee and former employee for whom a debt account is established under section 10 a statement of the account balance, and
(b) if a tax file number has not been previously given to STC for an employee or former employee—request the employee or former employee give the employee’s or former employee’s tax file number to STC.
Part 3 Family law provisions—the Act, s 27AL
Part 3 Family law provisions—the Act, s 27AL
Part 3 Family law provisions—the Act, s 27AL
12 Definition
12 Definition
12 Definition
In this part—
employee includes a former employee.
13 Valuation of superannuation interests—the Act, s 27AL(g)
13 Valuation of superannuation interests—the Act, s 27AL(g)
13 Valuation of superannuation interests—the Act, s 27AL(g)
14 Prescribed period for non-employee spouses to nominate
14 Prescribed period for non-employee spouses to nominate
14 Prescribed period for non-employee spouses to nominate
For the Act, section 27AJ(5)(a) and (b), the prescribed period is 60 days after notice is given to a non-employee spouse under section 15(1).
15 Notice when entitlement becomes payable—the Act, s 27AL(e)
15 Notice when entitlement becomes payable—the Act, s 27AL(e)
15 Notice when entitlement becomes payable—the Act, s 27AL(e)
(1) STC must give an employee and a non-employee spouse written notice if the employee’s superannuation interest is subject to a payment split.
(2) The notice must be given—
(a) for a payment split under a superannuation agreement or flag lifting agreement—within 28 days after the operative time for the payment split, or
(b) for a payment split under a splitting order—within 28 days after the later of the following—
(i) the operative time for the payment split,
(ii) the day STC receives the order.
(3) The notice given to the employee must specify the following—
(a) the estimated amount of the non-employee spouse’s family law superannuation entitlement,
(b) how the amount was calculated,
(c) the period within which the amount will be paid,
(d) the estimated effect of the payment on the employee’s entitlement under the State Authorities Non-contributory Superannuation Scheme.
(4) The notice given to the non-employee spouse must—
(a) specify the following—
(i) the estimated amount of the non-employee spouse’s family law superannuation entitlement,
(ii) how the amount was calculated,
(iii) the circumstances in which the amount may be paid or released to the non-employee spouse,
(iv) the circumstances in which the amount must be transferred or rolled over to a complying superannuation fund or an RSA, and
(b) require the non-employee spouse to, within the period prescribed under section 14—
(i) if the non-employee spouse meets a circumstance for payment or release—provide details as to the required payment method, or
(ii) otherwise—nominate a complying superannuation fund or an RSA for the transfer or rollover of the amount, and
(c) specify that the amount will be credited to the Aware Super Fund if, within the period prescribed under section 14—
(i) the details are not provided, or
(ii) the nomination is not made.
(5) STC is not required to give notice if the superannuation interest ceases to be subject to a payment split within the notice period specified in subsection (2).
(6) In this section—
operative time has the same meaning as in the Family Law Act 1975 of the Commonwealth, Part VIIIB.
16 Family law superannuation payments—the Act, s 27AL(f)
16 Family law superannuation payments—the Act, s 27AL(f)
16 Family law superannuation payments—the Act, s 27AL(f)
(1) STC must pay a family law superannuation payment within the following periods—
(a) for a payment in the circumstance specified in the Act, section 27AJ(3)(a)—as soon as practicable after receiving notice from the non-employee spouse,
(b) for a payment in the circumstance specified in the Act, section 27AJ(3)(b)—within 30 days after receiving the non-employee spouse’s nomination of a complying superannuation fund or RSA,
(c) for a payment in the circumstance specified in the Act, section 27AJ(5)—within 30 days after the end of the period prescribed under section 14.
(2) STC must, within 28 days after taking an action specified in subsection (1), give the employee and non-employee spouse a written notice stating the following—
(a) that STC paid, released, transferred or rolled over the non-employee spouse’s superannuation entitlement,
(b) the amount of the entitlement,
(c) how the amount was calculated,
(d) for the notice given to the employee—the estimated amount of adjustment made to the benefit of the employee,
(e) for the notice given to the non-employee spouse, if the amount was transferred or rolled over to a superannuation fund or an RSA—the name and contact details of the superannuation fund or RSA.
Note—
See the Family Law (Superannuation) Regulations 2025 of the Commonwealth, regulation 98 in relation to the fees STC may charge in relation to certain actions taken under this section.
17 Reduction of benefits of employee—the Act, s 27AL(j)
17 Reduction of benefits of employee—the Act, s 27AL(j)
17 Reduction of benefits of employee—the Act, s 27AL(j)
(1) If a family law superannuation payment is made, the benefit payable to the employee under the Act must be reduced in accordance with this section.
(2) A benefit payable to an employee, including a benefit transferred under the Act, but not including a preserved benefit, must be reduced when the benefit is paid to the employee or transferred.
(3) A preserved benefit must be reduced—
(a) if the benefit is preserved before the family law superannuation payment is made—when the family law superannuation payment is made, or
(b) if the benefit is preserved after the family law superannuation payment is made —when the benefit is preserved.
(4) The benefit must be reduced in accordance with the following calculation—
where—
R is the amount of the reduced benefit.
V is the amount of the benefit that would have been payable to the employee under the Act if the family law superannuation payment had not been made.
A is the ratio of the amount paid in relation to the non-employee spouse to the value of the benefit of the employee when the payment split occurred.
C is the ratio of the benefit accrual at the time of the payment split to the benefit accrual when the benefit is payable, deferred or transferred, as the case requires.
(5) If family law superannuation payments are made to, or in relation to, more than one non-employee spouse, the amount of the reduced benefit must be further reduced by multiplying the
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