Superannuation Legislation Amendment (Tackling the Gender Super Gap)

1. The bill would create a voluntary annual process for spouses to redistribute superannuation between their funds while they are still together, by letting the spouse with the higher balance roll overA transfer of superannuation money from one fund or account to another, rather than a new contribution from outside superannuation. an amount to the other spouse.

2. A transfer could only go up to the spousal redistribution limitThe maximum amount that could be transferred under the bill, based on evening up the spouses’ balances without pushing the receiving spouse above the general transfer balance cap.: broadly, the amount needed to even up the two balances, capped so the receiving spouse is not pushed above the general transfer balance capA cap used in superannuation law that limits how much can be moved into retirement-phase income streams. The bill uses it as a ceiling for the receiving spouse’s balance..

3. The proposed process would be limited to regulated superannuation funds and approved deposit funds, and would not apply to unfunded public sector schemes, defined benefit components, pensions, retirement-phase interests, or interests already subject to a family-law payment split or payment flag.

4. A valid application would require the transferring spouse to have the higher withdrawal benefit, each spouse to have only one regulated superannuation fundA superannuation fund regulated under Commonwealth superannuation law. The bill’s proposed process would apply to regulated superannuation funds and approved deposit funds. or approved deposit fundA fund that can receive certain rolled-over superannuation benefits. The bill includes approved deposit funds in the proposed process., and the receiving spouse to give written consent.

5. The receiving spouse generally could not already be at or above the general transfer balance capA cap used in superannuation law that limits how much can be moved into retirement-phase income streams. The bill uses it as a ceiling for the receiving spouse’s balance., be aged 65 or over, or be between preservation ageThe age at which a person may be able to access preserved superannuation if they satisfy a condition of release. and 65 while satisfying the retirement condition of release. The process also could not be used again within 12 months if an earlier application had been completed or was still being considered.

6. Trustees would have short processing duties: the transferring fund would usually have to roll overA transfer of superannuation money from one fund or account to another, rather than a new contribution from outside superannuation. or transfer the approved amount within 30 business days, and the receiving fund would have to allocate the amount within 3 business days after receiving it.

7. For tax purposes, the transferred amount would be treated as a roll-over superannuation benefitA transfer of superannuation money from one fund or account to another, rather than a new contribution from outside superannuation. rather than a new contribution, and would keep the same tax-free, taxable, taxed and untaxed proportions it had in the transferring spouse’s fund.

No recorded votes have been found yet for this bill.