New family friendly superannuation rules approved today will come into effect in twelve months time to give superannuation funds time to implement the changes, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, confirmed.
Senator Coonan said the regulations were a key part of the Howard Government's comprehensive superannuation reforms designed to give people planning for their retirement more choice and flexibility.
"The initiatives that have now been approved by Executive Council will enhance the range of options available for separating or divorcing couples," Senator Coonan said.
"They more equitably recognise the contribution that both spouses make to a marriage, particularly a non-working spouse whose contribution to the marriage may be great in terms of human resources but not financial."
The Superannuation Industry (Supervision) Amendment Regulations build on family law reforms introduced earlier in the year by the Family Law Legislation Amendment (Superannuation) Act 2001.
The Act amends the Family Law Act 1975 to allow a married couple to split between themselves, on their separation, payments from a superannuation fund in which one of them holds an interest. If they are unable to agree, the Family Court will be able to order a payment split.
The regulations made under the SIS Act are a key part of the Government's policy for helping separating couples to resolve their legal problems wherever possible without going to court.
"The Government's changes are designed to assist married couples in resolving disputes at a time when they are faced with difficult and emotional decisions about how to divide their property."
The Superannuation Industry (Supervision) Amendment Regulations will allow certain superannuation interests in accumulation funds to be divided while the interest is still in the accumulation phase, and a new interest created in the name of the non-member spouse.
Senator Coonan said the initiative would be complimented by range of additional superannuation reforms announced during the election campaign, including a reduction in the super surcharge rate, super contributions on behalf of children, income tax reductions for self employed people and co-payments on behalf of low income earners.