Part 1
Preliminary
Part 1 Preliminary
1.01 Name of Orders
1.03 Definitions
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Commonwealth legislation
Sets out how Commonwealth Superannuation Scheme (CSS) benefits are valued and transferred between separating couples under the Family Law Act 1975, using actuarial formulas and tables to convert future pensions, lump sums, deferred and associate benefits into present transfer amounts.
Affects former CSS members, their ex-spouses and the Commonwealth Superannuation Corporation; it creates a consistent, actuarially sound method to fairly split significant retirement assets on separation.
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Direct links to the current provisions in Superannuation (Family Law - Superannuation Act 1976) Orders 2004.
Part 1 Preliminary
1.01 Name of Orders
1.03 Definitions
Part 2 Orders relating to certain amounts and rates
2.01 Basic contributions amount
2.02 Employer contributions amount
2.03 Supplementary contributions amount
2.04 Scheme value — member spouse with no surcharge debt
2.04A Scheme value — member spouse with surcharge debt
2.05 Annual rate of associate standard pension
2.06 Annual rate of associate additional pension
2.07 Annual rate of associate deferred pension
2.08 Amount payable if non‑member spouse dies before benefits become payable
2.09 Commutation of small associate pension — minimum amount
2.10 Commutation of small associate pension — lump sum payable on election
2.11 Reduction of associate deferred benefits where original interest is entitlement to associate deferred benefits
2.12 Reduction of standard pension — general
2.13 Reduction of standard pension to which section 2.12 does not apply
2.14 Reduction of additional pension
Part 3 Orders relating to section 110SL amount for the Act
3.01 Section 110SL amount
Part 4 Orders relating to section 130B amount for the Act
4.01 Section 130B amount
Schedule 1 Methods and factors used to determine scheme value in relation to member spouse
Part 1 Methods
Part 2 Scheme factors
Schedule 2 Pension factors for non‑member spouses
Schedule 3 Pension factors for member spouses
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Part 1 Preliminary
1.01 Name of Orders
These Orders are the Superannuation (Family Law — Superannuation Act 1976) Orders 2004.
1.03 Definitions
(1) In these Orders:
1922 Act means the Superannuation Act 1922.
Act means the Superannuation Act 1976.
actuary means a person who is a Fellow or Accredited Member of the Institute of Actuaries of Australia.
CSS means the Commonwealth Superannuation Scheme.
early release deduction amount has the same meaning as in section 79A of the Act.
Eligible Employees Regulations means the Superannuation (CSS) Former Eligible Employees Regulations.
family law commencement day means 18 May 2004.
FL Act means the Family Law Act 1975.
(2) An expression that is used in these Orders, and defined in section 146MA of the Act, has the meaning given by that section.
Note Section 146MA of the Act defines expressions including non‑member spouse, operative time and transfer amount. Some expressions are defined in section 146MA to have the same meaning as in the Family Law Act 1975.
Part 2 Orders relating to certain amounts and rates
2.01 Basic contributions amount
(1) For the definition of basic contributions amount in section 146MA of the Act, the basic contributions amount in relation to a member spouse is determined in accordance with this section.
(b) the original interest in relation to the member spouse arises from the member spouse being, or having been, an eligible employee;
the basic contributions amount is determined as follows:
| Step 1 | Identify the amount of the lump sum that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time.Note The amount of the lump sum would include accumulated basic contributions and interest. |
|---|---|
| Step 2 | Identify the component of the lump sum that would relate to accumulated basic contributions. |
| Step 3 | Subtract from the component identified in step 2 any part of that component that would relate to the early release deduction amount.The result is the basic contributions amount. |
(3) If the member spouse is a person who has an entitlement to associate deferred benefits, the basic contributions amount is the amount of the funded component, mentioned in paragraph 146MC (1) (a) of the Act, that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time.
2.02 Employer contributions amount
(1) For the definition of employer contributions amount in section 146MA of the Act, the employer contributions amount in relation to a member spouse is determined in accordance with this section.
(b) the original interest in relation to the member spouse arises from the member spouse being, or having been, an eligible employee;
the employer contributions amount is determined as follows:
| Step 1 | Identify the amount of the lump sum that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time. |
|---|---|
| Step 2 | Identify the component of the lump sum that would relate to accumulated basic contributions |
| Step 3 | Subtract from the component identified in step 2 any part of that component that would relate to the early release deduction amount.The result is the basic contributions amount. |
2.03 Supplementary contributions amount
(1) For the definition of supplementary contributions amount in section 146MA of the Act, the supplementary contributions amount in relation to a member spouse is determined in accordance with this section.
(b) the original interest in relation to the member spouse arises from the member spouse being, or having been, an eligible employee;
the supplementary contributions amount is determined as follows:
| Step 1 | Identify the amount of the lump sum that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time. |
|---|---|
| Step 2 | Identify the component of the lump sum that would relate to accumulated employer contributions (if any). |
| Step 3 | Subtract from the component identified in step 2 any part of that component that would relate to the early release deduction amount.The result is the employer contributions amount. |
2.04 Scheme value — member spouse with no surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time did not show a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 146MA of the Act:
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by CSC for this section.
2.04A Scheme value — member spouse with surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time (the statement) showed a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 146MA of the Act, and subject to subsections (3) to (6):
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by CSC for this section.
(3) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer amount in section 146MA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2), reduced by the amount of the member spouse’s surcharge debt shown in the statement.
(4) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer factor in section 146MA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2).
(5) If the operative time was before the family law commencement day, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer factor; and
(b) adding to that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) using the result of paragraph (b) to recalculate the transfer factor.
(6) If the operative time was on or after the family law commencement day, and before the day on which this subsection commences, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer amount as part of calculating the transfer factor; and
(b) subtracting from that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) recalculating the transfer amount using the reduced scheme value calculated under paragraph (b); and
(d) using the result of paragraph (c), and the unreduced scheme value identified under subsection (2), to recalculate the transfer factor.
2.05 Annual rate of associate standard pension
(1) For subsection 146MB (2) of the Act, this section applies if standard pension is payable in respect of an original interest, whether or not additional pension is also payable in respect of the original interest.
Note If additional pension is payable in respect of the original interest, section 2.06 explains how to calculate associate additional pension.
(2) The annual rate of associate standard pension payable to a non‑member spouse to whom subsection 146MB (2) of the Act applies is calculated as follows:
| Step 1 | Identify the transfer amount in relation to the non‑member spouse.Note Subsection 146MB (2) of the Act requires the rate of associate standard pension to be calculated by reference to the transfer amount. |
|---|---|
| Step 2 | Work out a factor representing the proportion of the transfer amount that related to the payment of standard pension immediately before the operative time.If the family law value of the original interest is less than the scheme value of the original interest, the factor will be the portion of the scheme value of the original interest relating to the standard pension. In other cases, the factor will be the portion of the family law value of the original interest relating to the standard pension. |
| Step 3 | Multiply the transfer amount by the factor identified in step 2. |
| Step 4 | Work out a pension factor (F y+m) based on the non‑member spouse’s gender and age, using the formula:where:Fy is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non‑member spouse’s gender and age in completed years (represented by y). |
| Fy+1 is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non‑member spouse’s gender and age in completed years plus 1 (represented by y + 1). | |
| m is the number of completed months of the non‑member spouse’s age, at the operative time, that are not included in the non‑member spouse’s age in completed years.Note The associate standard pension does not include a reversionary component. | |
| Step 5 | Divide the amount worked out in step 3 by the pension factor worked out in step 4.The result is the annual rate of the associate standard pension. |
(3) However, if it is not possible to calculate the annual rate of associate standard pension using subsection (2), the annual rate of associate standard pension payable to a non‑member spouse to whom subsection 146MB (2) of the Act applies is to be calculated by an actuary appointed by CSC for this section.
2.06 Annual rate of associate additional pension
(1) For subsection 146MB (3) of the Act, this section applies if additional pension is payable in respect of an original interest.
(2) The annual rate of associate additional pension payable to a non‑member spouse to whom subsection 146MB (3) of the Act applies is calculated as follows:
| Step 1 | Identify the transfer amount in relation to the non‑member spouse.Note Subsection 146MB (3) of the Act requires the rate of associate additional pension to be calculated by reference to the transfer amount. |
|---|---|
| Step 2 | Subtract the amount worked out in step 3 in subsection 2.05 (2) from the transfer amount. |
| Step 3 | Work out a pension factor (F y+m) based on the non‑member spouse’s gender and age, using the formula:where:Fy is the valuation factor mentioned in Table 2 in Schedule 2, applicable at the operative time to the non‑member spouse’s gender and age in completed years (represented by y). |
| Fy+1 is the valuation factor mentioned in Table 2 in Schedule 2 that would apply, at the operative time, if the non‑member spouse’s gender and age in completed years were one year more than they are at the operative time (represented by y + 1).m is the number of completed months of the non‑member spouse’s age, at the operative time, that are not included in the non‑member spouse’s age in completed years.Note The associate additional pension does not include a reversionary component. | |
| Step 4 | Divide the amount worked out in step 2 by the pension factor worked out in step 3.The result is the annual rate of the associate additional pension. |
(3) However, if it is not possible to calculate the annual rate of associate additional pension using subsection (2), the annual rate of associate additional pension payable to a non‑member spouse to whom subsection 146MB (3) of the Act applies is to be calculated by an actuary appointed by CSC for this section.
2.07 Annual rate of associate deferred pension
(1) For paragraph 146MC (1) (b) of the Act, the annual rate at which an associate deferred pension is to be paid is calculated as follows:
| Step 1 | Identify the unfunded component in relation to the transfer amount at the operative time.Note Paragraph 146MC (1) (b) of the Act requires the rate of associate deferred pension to be calculated by reference to the unfunded amount. |
|---|---|
| Step 2A | Increase the unfunded component in relation to the transfer amount for any period between the operative time and the time at which the associate deferred pension first becomes payable, using the Treasury bond rate for the last working day of the financial year ending immediately before the period for which the increase is being calculated for bonds with a 10 year term.Note The period between the operative time and the time at which the associate deferred pension first becomes payable may include a number of full financial years, or may occur entirely within a single financial year. |
| Treasury bond rate for bonds with a 10 year termThe Treasury bond rate for the last working day of a financial year for bonds with a 10 year term is:(a) if any Treasury bonds with that term were issued on that day — the annual yield on those bonds; or(b) in any other case — the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day. | |
| Calculation of increase in transfer amountThe increase in the unfunded component is calculated:(a) at the end of each financial year that occurs between the operative time and the time at which the associate deferred pension first becomes payable; and(b) immediately before the associate deferred pension first becomes payable;using the applicable Treasury bond rate for the relevant period worked out in steps 2B, 2C and 2D, and compounded period by period. | |
| Step 2B | First periodIdentify the shorter of:(a) the period between the operative time and the end of the financial year in which the operative time occurs; and(b) the period between the operative time and the day before the associate deferred pension becomes payable.This is the first period. |
| Multiply the number of days in the first period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the first period occurs, and divide the result by 365.Round the result to 3 decimal places.The result is the applicable Treasury bond rate for the first period. | |
| Step 2C | Full financial years (if any)Use this step if a full financial year occurs immediately after the end of the first period and before the associate deferred pension becomes payable. This is the second period.Identify the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year.Round the result to 3 decimal places.The result is the applicable Treasury bond rate for the second period.Repeat this arrangement for each full financial year after the second period. |
| Step 2D | Final period (if any)Use this step if:(a) there is any period between the end of a financial year and the time at which the associate deferred pension becomes payable; and(b) neither step 2B nor step 2C covers that period.This is the final period. |
| Multiply the number of days in the final period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the final period occurs, and divide the result by 365.Round the result to 3 decimal places.The result is the applicable Treasury bond rate for the final period. | |
| Step 3 | Work out a pension factor (F y+m) based on the non‑member spouse’s gender and age, using the formula:where:Fy is:(a) if the associate deferred pension is not payable on permanent incapacity — the valuation factor mentioned in Table 3A in Schedule 2, applicable, when the associate deferred pension first becomes payable, to the non‑member spouse’s gender and age in completed years (represented by y); and(b) if the associate deferred pension is payable on permanent incapacity — the valuation factor mentioned in Table 3B in Schedule 2, applicable, when the associate deferred pension first becomes payable, to the non‑member spouse’s gender and age in completed years (represented by y). |
| Fy+1 is:(a) if the associate deferred pension is not payable on permanent incapacity — the valuation factor mentioned in Table 3A in Schedule 2, applicable, when the associate deferred pension would first become payable, if the non‑member spouse’s gender and age in completed years were one year more than they are at that time (represented by y + 1); and | |
| (b) if the associate deferred pension is payable on permanent incapacity — the valuation factor mentioned in Table 3B in Schedule 2, that would be applicable, when the associate deferred pension first becomes payable, if the non‑member spouse’s gender and age in completed years were one year more than they are at that time (represented by y + 1).m is the number of completed months of the non‑member spouse’s age, when the pension first becomes payable, that are not included in the non‑member spouse’s age in completed years.Note The associate deferred pension does not include a reversionary component. | |
| Step 4 | Divide the unfunded component in relation to the transfer amount, as increased in step 2A, by the pension factor worked out in step 3.The result is the annual rate of the associate deferred pension. |
(2) However, if it is not possible to work out a pension factor using step 3 in subsection (1), the pension factor is to be worked out by an actuary appointed by CSC for this section.
2.08 Amount payable if non‑member spouse dies before benefits become payable
For paragraph 146MC (5) (b) of the Act, the amount payable in respect of the death of a non‑member spouse is a lump sum equal to the unfunded component of the transfer amount, increased in the way described in step 2A in subsection 2.07 (1) if associate deferred benefits had become payable at the date of death.
Note This amount is payable in addition to any amount that becomes payable under paragraph 146MC (5) (a) of the Act.
2.09 Commutation of small associate pension — minimum amount
(1) For subsection 146MD (1) of the Act, the amount is $1 300.
(2) The amount is to be indexed in the same way, and at the same time, as a standard pension is indexed under Part X of the Act.
2.10 Commutation of small associate pension — lump sum payable on election
For paragraph 146MD (3) (b) of the Act, the amount of the lump sum is an amount equal to the unfunded component of the transfer amount, increased in the way described in step 2A in subsection 2.07 (1).
2.11 Reduction of associate deferred benefits where original interest is entitlement to associate deferred benefits
For subsection 146MF (2) of the Act, associate deferred benefits are to be reduced as follows:
| Step 1 | Identify the funded and unfunded components of the transfer amount at the operative time. |
|---|---|
| Step 2 | Increase the funded component of the transfer amount as if the component were an amount calculated under paragraph 146MC (1) (a) of the Act and paid when the associate deferred benefits become payable. |
| Step 3 | Increase the unfunded component of the transfer amount as if it were the lump sum amount calculated in step 2A in subsection 2.07 (1) when the associate deferred benefits become payable.Note A lump sum amount is increased under section 2.07 only if there is a period between the operative time and the time at which benefits first become payable. Therefore, in a particular case, it is possible that the unfunded component of the transfer amount will not need to be increased under this step. |
| Step 4 | Identify:(a) the funded component of the associate deferred benefits, as calculated under paragraph 146MC (1) (a) of the Act; and(b) the lump sum value of the unfunded component of the associate deferred benefits, as worked out under section 2.07;to the date of payment.Note The lump sum value of the unfunded component of the associate deferred benefits represents the increased unfunded component of the transfer amount worked out under step 2A in subsection 2.07 (1).If the funded component of the associate deferred benefits has previously been reduced in accordance with these Orders, the reduction must be taken into account. |
| If the unfunded component of the associate deferred benefits has previously been reduced in accordance with these Orders, the reduction must be taken into account. | |
| Step 5 | Reduce the funded component of the associate deferred benefits as identified in step 4 by the increased funded component of the transfer amount worked out at step 2. |
| Step 6 | Reduce the lump sum value of the unfunded component of the associate deferred benefits identified in step 4 by the increased unfunded component of the transfer amount worked out at step 3. |
| Step 7 | Substitute the reduced amount calculated under step 5 for the lump sum calculated under paragraph 146MC (1) (a) of the Act for payment under section 146MC. |
| Step 8 | Substitute the reduced lump sum calculated in step 6 for the amount that is referred to in step 4 in subsection 2.07 (1) as ‘the unfunded component in relation to the transfer amount, as increased in step 2A’, for the purposes of paragraph 146MC (1) (b) of the Act. |
Example for section 2.11
A member spouse has an entitlement to associate deferred benefits. The scheme value of those benefits at the operative time is $300 000. The funded component is $100 000, and the unfunded component is $200 000.
The agreement served on CSC specifies that half of the interest is to be transferred to the non‑member spouse. Therefore, the transfer amount is $150 000, of which the funded component is $50 000.
Step 1 identifies the components of the transfer amount to be $50 000 funded and $100 000 unfunded.
Step 2 indexes the funded component of the transfer amount to the day on which the associate deferred benefits become payable to the non‑member spouse.
The $50 000 is increased by the Fund crediting rate to $60 000.
Step 3 indexes the unfunded component of the transfer amount to the same day, assuming that indexation is required.
The $100 000 is increased as provided for under section 2.07 to $110 000.
Step 4 calculates the funded component and the lump sum value of the unfunded component of the associate deferred benefits that would become payable if there were no reduction.
The $100 000 funded value is increased by the Fund crediting rate to $120 000.
The $200 000 is increased by the Bond Rate to $220 000.
Step 5 reduces the funded component calculated at Step 4 by the amount calculated at Step 2.
The $120 000 is reduced by $60 000, leaving $60 000.
(Step 7 provides that the amount of $60 000 left after this reduction becomes payable to the member spouse under paragraph 146MC (1) (a) of the Act.)
Step 6 reduces the lump sum value of the unfunded component of the associate deferred benefits calculated at Step 4 by the amount calculated at Step 3.
The $220 000 is reduced by $110 000, leaving $110 000.
Step 8 provides that the reduced lump sum value ($110 000) is to be substituted for the amount calculated for section 2.07 to calculate the rate of pension under paragraph 146MC (1) (b) of the Act.
2.12 Reduction of standard pension — general
(1) For subsection 146MG (1) of the Act, this section applies if standard pension is payable to a member spouse in respect of an original interest, whether or not additional pension is also payable to the member spouse in respect of the original interest.
Note If additional pension is payable to the member spouse in respect of the original interest, section 2.14 explains how to reduce the amount of additional pension.
(2) However, this section does not apply to a standard pension that is:
(a) an invalidity pension; or
(b) a spouse’s pension that became payable on the death of an eligible employee; or
(c) a spouse’s pension that became payable on the death of a pensioner to whom invalidity pension was payable.
Note Section 2.13 explains how to reduce the amount of these pensions.
(3) The amount to which an annual rate of standard pension payable in respect of an original interest is to be reduced is calculated as follows:
| Step 1 | Identify the annual rate of standard pension that was payable in relation to the member spouse immediately before the operative time. |
|---|---|
| Step 2 | If that annual rate of standard pension takes account of the existence of 1 or more eligible children or partially dependent children, deduct the part of the annual rate that takes account of the existence of the children. |
| Step 3 | Work out a pension factor (F y+m) based on the member spouse’s gender, age and kind of standard pension, using the formula:where:Fy is the valuation factor mentioned in Table 1 in Schedule 3 applicable, at the operative time, to the member spouse’s gender, age in completed years (represented by y) and kind of pension. |
| Fy+1 is the valuation factor mentioned in Table 1 in Schedule 3 that would apply for the kind of pension, at the operative time, if the member spouse’s gender and age in completed years were one year more than they are at the operative time (represented by y + 1).m is the number of completed months of the member spouse’s age, at the operative time, that are not included in the member spouse’s age in completed years. | |
| Step 4 | Multiply the annual rate of standard pension (or the rate worked out under step 2, if applicable) by the pension factor worked out in step 3. |
| Step 5 | Subtract the amount worked out in step 3 in subsection 2.05 (2). |
| Step 6 | Divide the amount worked out in step 5 by the pension factor worked out in step 3. |
| Step 7 | If step 2 applies, increase the rate worked out in step 6 by the part of the rate that was deducted under step 2.The result is the annual rate of the standard pension payable after the operative time in respect of the original interest. |
(4) However, if it is not possible to reduce the annual rate of standard pension using subsection (3), the reduction of the annual rate of standard pension is to be calculated by an actuary appointed by CSC for this section.
2.13 Reduction of standard pension to which section 2.12 does not apply
(1) For subsection 146MG (1) of the Act, this section applies if:
(a) standard pension is payable to a member spouse in respect of an original interest; and
(b) the standard pension is:
(i) an invalidity pension; or
(ii) a spouse’s pension that became payable on the death of an eligible employee; or
(iii) a spouse’s pension that became payable on the death of a pensioner to whom invalidity pension was payable.
(2) The amount to which the annual rate of standard pension payable in respect of an original interest is to be reduced is calculated using subsections (3) to (7).
(3) Work out 2 portions of the transfer amount in relation to the non‑member spouse as follows:
| Step 1 | Identify the transfer amount in relation to the non‑member spouse.Note Subsection 146MB (2) of the Act requires the rate of associate standard pension to be calculated by reference to the unfunded amount. |
|---|---|
| Step 2 | Work out a factor representing the proportion of the transfer amount that related to the payment of the part of the person’s standard pension (the indexed component) that is subject to indexation in accordance with the consumer price index at the operative time.Disregard any reduction or suspension under section 73A of the Act.If the family law value of the original interest is less than the scheme value of the original interest, the factor will be the portion of the scheme value of the original interest relating to the indexed component. In other cases, the factor will be the portion of the family law value of the original interest relating to the indexed component. |
| Step 3 | Multiply the transfer amount by the factor worked out in step 2.The result is the portion of the transfer amount arising from the indexed component. |
| Step 4 | Subtract the amount worked out in step 3 from the transfer amount.The result is the portion of the transfer amount arising from the payment of the part of the standard pension in respect of the original interest that is fixed in nominal dollars (the fixed component). |
(4) The amount worked out in step 3 in subsection (3) is then to be used as part of the following calculation:
| Step 1 | Work out a pension factor (F y+m) based on the member spouse’s gender, age and kind of standard pension, using the formula: |
|---|---|
| where:Fy is the valuation factor mentioned in Table 1 in Schedule 3 applicable, at the operative time, to the member spouse’s gender, age in completed years (represented by y) and kind of pension.Fy+1 is the valuation factor mentioned in Table 1 in Schedule 3 that would apply for the kind of pension, at the operative time, if the member spouse’s gender and age in completed years were one year more than they are at the operative time (represented by y + 1).m is the number of completed months of the member spouse’s age, at the operative time, that are not included in the member spouse’s age in completed years. | |
| Step 2 | If the indexed component takes account of the existence of 1 or more eligible children or partially dependent children, deduct the part of the indexed component that takes account of the existence of the children. |
| Step 3 | Multiply the amount of the indexed component (reduced under step 2 if that step applies) by the pension factor worked out in step 1. |
| Step 4 | Subtract the amount worked out in step 3 in subsection (3) from the amount worked out in step 3. |
| Step 5 | Divide the amount worked out in step 4 by the pension factor worked out in step 1. |
| Step 6 | If step 2 applies, increase the rate worked out in step 5 by the part of the indexed component that was deducted under step 2.The result is the annual rate of the indexed component of the standard pension payable after the operative time in respect of the original interest. |
(5) However, if it is not possible to reduce the annual rate of the indexed component of the standard pension using subsection (4), the reduction of the annual rate of the indexed component is to be calculated by an actuary appointed by CSC for this section.
(6) The amount worked out in step 4 in subsection (3) is then to be used as part of the following calculation:
| Step 1 | Work out a pension factor (G y+m) based on the member spouse’s gender, age and kind of standard pension, using the formula:where:Gy is the valuation factor mentioned in Table 2 in Schedule 3 applicable, at the operative time, to the member spouse’s gender, age in completed years (represented by y) and kind of pension.Gy+1 is the valuation factor mentioned in Table 2 in Schedule 3 that would apply for the kind of pension, at the operative time, if the member spouse’s gender and age in completed years were one year more than they are at the operative time (represented by y + 1).m is the number of completed months of the member spouse’s age, at the operative time, that are not included in the member spouse’s age in completed years. |
|---|---|
| Step 2 | Multiply the amount of the fixed component by the pension factor worked out in step 1. |
| Step 3 | Subtract the amount worked out in step 4 in subsection (3) from the amount worked out in step 2. |
| Step 4 | Divide the amount worked out in step 3 by the pension factor worked out in step 1.The result is the annual rate of the fixed component of the standard pension payable after the operative time in respect of the original interest. |
(7) However, if it is not possible to reduce the fixed component of the standard pension using subsection (6), the reduction of the annual rate of the fixed component is to be calculated by an actuary appointed by CSC for this section.
2.14 Reduction of additional pension
(1) For subsection 146MG (2) of the Act, this section applies if additional pension is payable to a member spouse in respect of an original interest.
(2) The amount to which an annual rate of additional pension payable in respect of an original interest is to be reduced is calculated as follows:
| Step 1 | Identify the annual rate of additional pension that was payable in relation to the member spouse immediately before the operative time. |
|---|---|
| Step 2 | Work out a pension factor (G y+m) based on the member spouse’s gender, age and kind of standard pension, using the formula:where:Gy is the valuation factor mentioned in Table 2 in Schedule 3 applicable, at the operative time, to the member spouse’s gender, age in completed years (represented by y) and kind of pension.Gy+1 is the valuation factor mentioned in Table 2 in Schedule 3 that would apply for the kind of pension, at the operative time, if the member spouse’s gender and age in completed years were one year more than they are at the operative time (represented by y + 1).m is the number of completed months of the member spouse’s age, at the operative time, that are not included in the member spouse’s age in completed years. |
| Step 3 | Multiply the annual rate of additional pension by the pension factor worked out in step 2. |
| Step 4 | Subtract the amount worked out in step 2 in subsection 2.06 (2). |
| Step 5 | Divide the amount worked out in step 4 by the pension factor worked out in step 2.The result is the annual rate of the additional pension payable after the operative time in respect of the original interest. |
(3) However, if it is not possible to reduce the annual rate of additional pension using subsection (2), the reduction of the annual rate of additional pension is to be calculated by an actuary appointed by CSC for this section.
Part 3 Orders relating to section 110SL amount for the Act
3.01 Section 110SL amount
(1) For the definition of section 110SL amount in section 146MA of the Act, the section 110SL amount in relation to a member spouse is determined in accordance with this section.
(2) If the member spouse is, or has been at any time, an eligible employee, the section 110SL amount is determined as follows:
Step 1 Identify the amount equal to the lump sum that would be payable to the member spouse under section 110SN of the Act if the lump sum had been payable at the operative time.
Step 2 Subtract from the amount identified in step 1 any part of that amount that would relate to the early release deduction amount.
The result is the section 110SL amount.
Part 4 Orders relating to section 130B amount for the Act
4.01 Section 130B amount
(1) For the definition of section 130B amount in section 146MA of the Act, the section 130B amount in relation to a member spouse is determined in accordance with this section.
(2) If the member spouse is, or has been at any time, an eligible employee, the section 110SL amount is determined as follows:
Step 1 Identify the amount equal to the lump sum that would be payable to the member spouse under section 110SN of the Act if the lump sum had been payable at the operative time.
Step 2 Subtract from the amount identified in step 1 any part of that amount that would relate to the early release deduction amount.
The result is the section 110SL amount.
Schedule 1 Methods and factors used to determine scheme value in relation to member spouse
(section 2.04)
Part 1 Methods
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Superannuation (Family Law — Superannuation Act 1976) Orders 2004
Statutory Rules No. 86, 2004
made under subsection 146MH(1) of the
Superannuation Act 1976
Compilation No. 5
Compilation date: 20 June 2025
Includes amendments: F2025L00705
About this compilation
This compilation
This is a compilation of the Superannuation (Family Law — Superannuation Act 1976) Orders 2004 that shows the text of the law as amended and in force on 20 June 2025 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1 Preliminary
1.01 Name of Orders
1.03 Definitions
Part 2 Orders relating to certain amounts and rates
2.01 Basic contributions amount
2.02 Employer contributions amount
2.03 Supplementary contributions amount
2.04 Scheme value — member spouse with no surcharge debt
2.04A Scheme value — member spouse with surcharge debt
2.05 Annual rate of associate standard pension
2.06 Annual rate of associate additional pension
2.07 Annual rate of associate deferred pension
2.08 Amount payable if non‑member spouse dies before benefits become payable
2.09 Commutation of small associate pension — minimum amount
2.10 Commutation of small associate pension — lump sum payable on election
2.11 Reduction of associate deferred benefits where original interest is entitlement to associate deferred benefits
2.12 Reduction of standard pension — general
2.13 Reduction of standard pension to which section 2.12 does not apply
2.14 Reduction of additional pension
Part 3 Orders relating to section 110SL amount for the Act
3.01 Section 110SL amount
Part 4 Orders relating to section 130B amount for the Act
4.01 Section 130B amount
Schedule 1 Methods and factors used to determine scheme value in relation to member spouse
Part 1 Methods
Part 2 Scheme factors
Schedule 2 Pension factors for non‑member spouses
Schedule 3 Pension factors for member spouses
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Part 1 Preliminary
1.01 Name of Orders
These Orders are the Superannuation (Family Law — Superannuation Act 1976) Orders 2004.
1.03 Definitions
(1) In these Orders:
1922 Act means the Superannuation Act 1922.
Act means the Superannuation Act 1976.
actuary means a person who is a Fellow or Accredited Member of the Institute of Actuaries of Australia.
CSS means the Commonwealth Superannuation Scheme.
early release deduction amount has the same meaning as in section 79A of the Act.
Eligible Employees Regulations means the Superannuation (CSS) Former Eligible Employees Regulations.
family law commencement day means 18 May 2004.
FL Act means the Family Law Act 1975.
(2) An expression that is used in these Orders, and defined in section 146MA of the Act, has the meaning given by that section.
Note Section 146MA of the Act defines expressions including non‑member spouse, operative time and transfer amount. Some expressions are defined in section 146MA to have the same meaning as in the Family Law Act 1975.
Part 2 Orders relating to certain amounts and rates
2.01 Basic contributions amount
(1) For the definition of basic contributions amount in section 146MA of the Act, the basic contributions amount in relation to a member spouse is determined in accordance with this section.
(2) If:
(a) the member spouse is, or has been at any time, an eligible employee; and
(b) the original interest in relation to the member spouse arises from the member spouse being, or having been, an eligible employee;
the basic contributions amount is determined as follows:
| Step 1 | Identify the amount of the lump sum that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time.Note The amount of the lump sum would include accumulated basic contributions and interest. |
|---|---|
| Step 2 | Identify the component of the lump sum that would relate to accumulated basic contributions. |
| Step 3 | Subtract from the component identified in step 2 any part of that component that would relate to the early release deduction amount.The result is the basic contributions amount. |
(3) If the member spouse is a person who has an entitlement to associate deferred benefits, the basic contributions amount is the amount of the funded component, mentioned in paragraph 146MC (1) (a) of the Act, that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time.
2.02 Employer contributions amount
(1) For the definition of employer contributions amount in section 146MA of the Act, the employer contributions amount in relation to a member spouse is determined in accordance with this section.
(2) If:
(a) the member spouse is, or has been at any time, an eligible employee; and
(b) the original interest in relation to the member spouse arises from the member spouse being, or having been, an eligible employee;
the employer contributions amount is determined as follows:
| Step 1 | Identify the amount of the lump sum that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time. |
|---|---|
| Step 2 | Identify the component of the lump sum that would relate to accumulated basic contributions |
| Step 3 | Subtract from the component identified in step 2 any part of that component that would relate to the early release deduction amount.The result is the basic contributions amount. |
2.03 Supplementary contributions amount
(1) For the definition of supplementary contributions amount in section 146MA of the Act, the supplementary contributions amount in relation to a member spouse is determined in accordance with this section.
(2) If:
(a) the member spouse is, or has been at any time, an eligible employee; and
(b) the original interest in relation to the member spouse arises from the member spouse being, or having been, an eligible employee;
the supplementary contributions amount is determined as follows:
| Step 1 | Identify the amount of the lump sum that would be payable to the member spouse if benefits had become payable to the member spouse at the operative time. |
|---|---|
| Step 2 | Identify the component of the lump sum that would relate to accumulated employer contributions (if any). |
| Step 3 | Subtract from the component identified in step 2 any part of that component that would relate to the early release deduction amount.The result is the employer contributions amount. |
2.04 Scheme value — member spouse with no surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time did not show a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 146MA of the Act:
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by CSC for this section.
2.04A Scheme value — member spouse with surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time (the statement) showed a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 146MA of the Act, and subject to subsections (3) to (6):
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by CSC for this section.
(3) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer amount in section 146MA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2), reduced by the amount of the member spouse’s surcharge debt shown in the statement.
(4) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer factor in section 146MA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2).
(5) If the operative time was before the family law commencement day, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer factor; and
(b) adding to that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) using the result of paragraph (b) to recalculate the transfer factor.
(6) If the operative time was on or after the family law commencement day, and before the day on which this subsection commences, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer amount as part of calculating the transfer factor; and
(b) subtracting from that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) recalculating the transfer amount using the reduced scheme value calculated under paragraph (b); and
(d) using the result of paragraph (c), and the unreduced scheme value identified under subsection (2), to recalculate the transfer factor.
2.05 Annual rate of associate standard pension
(1) For subsection 146MB (2) of the Act, this section applies if standard pension is payable in respect of an original interest, whether or not additional pension is also payable in respect of the original interest.
Note If additional pension is payable in respect of the original interest, section 2.06 explains how to calculate associate additional pension.
(2) The annual rate of associate standard pension payable to a non‑member spouse to whom subsection 146MB (2) of the Act applies is calculated as follows:
| Step 1 | Identify the transfer amount in relation to the non‑member spouse.Note Subsection 146MB (2) of the Act requires the rate of associate standard pension to be calculated by reference to the transfer amount. |
|---|---|
| Step 2 | Work out a factor representing the proportion of the transfer amount that related to the payment of standard pension immediately before the operative time.If the family law value of the original interest is less than the scheme value of the original interest, the factor will be the portion of the scheme value of the original interest relating to the standard pension. In other cases, the factor will be the portion of the family law value of the original interest relating to the standard pension. |
| Step 3 | Multiply the transfer amount by the factor identified in step 2. |
| Step 4 | Work out a pension factor (F y+m) based on the non‑member spouse’s gender and age, using the formula:where:Fy is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non‑member spouse’s gender and age in completed years (represented by y). |
| Fy+1 |
This is an opening excerpt, not the complete document.