Self managed superannuation funds, defined benefit interest rates for 2017

Posted on August 21st, 2017

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Superannuation assets in aggregate were almost $2.3 trillion at the end of the March 2017 quarter and are now at an all time historical record level.

It is possible to split the superannuation entitlements of married (and de facto couples, except in Western Australia) as part of a property settlement adjustment.   Such splits need to be the subject of a Court order or a Superannuation Agreement entered into strictly in accordance with the Family Law Act. 

Our family lawyers are alert to the fact that not all super funds are the same. The nature, form and characteristics of funds differ.   Different rules apply to different types of funds, even after a splitting order has been made.  This is the case for adjustments made to base amounts that a non-member spouse (NMS) might receive in a SMSF or a Defined Benefit Fund.

When a splitting order is served on the trustee of the fund, the trustee generally holds the base amount for payment to the NMS until the member satisfies a condition of release.  In the interim the trustee must add interest to the base amount pending payment in accordance with determinations of the Government Actuary.   The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2017 was recently released and an interest rate of 4.7% per annum will be added to the relevant base amounts in the financial year beginning 1 July 2017.


Mark Sullivan, Director at Mullane & Lindsay Solicitors, NewcastleMark Sullivan is a Director and Accredited Specialist at Mullane & Lindsay Solicitors and practices extensively in Family, Relationship and Matrimonial LawIf you require any assistance in this area please contact Mark Sullivan to arrange a consultation or contact our Newcastle office.

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