Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026 (F2026L00726)
Schedule 2 Total superannuation balance value and the value of superannuation interests
Part 2 Total superannuation balance value and the value of superannuation interests
Division 1 Main amendments
Income Tax Assessment (1997 Act) Regulations 2021
6 At the end of Subdivision 307-D
Add:
307-230A.01 Total superannuation balance value - defined benefit interests not in retirement phase
(1) Subsection (2) applies in relation to a defined benefit interest at a particular time if, at that time:
(a) the interest is not in the retirement phase; and
(b) the interest has a family law value; and
(c) subsection (4) of this section does not apply to the interest.
(2) For the purposes of paragraph 307-230A(1)(a) of the Act:
(a) if there is no alternative valuation method for the interest - the family law value is specified; or
(b) if there is an alternative valuation method for the interest - the alternative valuation method is specified.
Certain lump sum-only interests
(3) Subsection (4) applies in relation to a defined benefit interest at a particular time if, at that time:
(a) the interest is not in the retirement phase; and
(b) section 307-230A.08 applies to the interest.
(4) For the purposes of paragraph 307-230A(1)(a) of the Act:
(a) if there is no alternative valuation method for the interest - the vested benefits total of the interest is specified; or
(b) if there is an alternative valuation method for the interest - the alternative valuation method is specified.
Note: For the total superannuation balance value of a superannuation interest that is not a superannuation interest to which this section or section 307-230A.02 of this instrument relates, see paragraph 307-230A(1)(b) of the Act.
307-230A.02 Total superannuation balance value - superannuation interests in retirement phase
Superannuation interests that have family law values
(1) Subject to subsections (5) and (6), subsection (2) applies in relation to a superannuation interest at a particular time if, at that time:
(a) the interest is in the retirement phase; and
(b) the interest has a family law value.
(2) For the purposes of paragraph 307-230A(1)(a) of the Act:
(a) if there is no alternative valuation method for the interest - the family law value is specified; or
(b) if there is an alternative valuation method for the interest - the alternative valuation method is specified.
Other superannuation interests
(3) Subject to subsections (5) and (6), subsection (4) applies in relation to a superannuation interest at a particular time if, at that time:
(a) the interest is in the retirement phase; and
(b) the interest does not have a family law value.
(4) For the purposes of paragraph 307-230A(1)(a) of the Act, the value of the interest (within the meaning of section 307-205 of the Act) is specified.
Superannuation interests to which this section does not apply
(5) This section does not apply in relation to a superannuation interest at a particular time if the interest supports any of the following superannuation income streams at that time:
(a) an allocated annuity;
(b) an allocated pension;
(c) an allocated pension (within the meaning of the RSA Regulations);
(d) an account-based annuity;
(e) an account-based pension (within the meaning of the SIS Regulations);
(f) an account based pension (within the meaning of the RSA Regulations);
(g) a market linked annuity (within the meaning of the SIS Regulations);
(h) a market linked pension (within the meaning of the SIS Regulations);
(i) a market linked pension (within the meaning of the RSA Regulations).
Note: For the total superannuation balance value of a superannuation interest that supports any of those superannuation income streams, see paragraph 307-230A(1)(b) of the Act.
(6) This section does not apply in relation to a superannuation interest to which subsection 307-230A.03(2) or (4) applies.
307-230A.03 Total superannuation balance value - certain other superannuation interests
(1) Subsection (2) applies in relation to a superannuation interest at a particular time if, at that time, either:
(a) the interest supports an income stream that is a pension payable under section 16 or 26 of the Australian Defence Force Cover Act 2015; or
(b) the interest supports an income stream that is a pensionpayable under section 123 of the Federal Circuit and Family Court of Australia Act 2021.
(2) For the purposes of paragraph 307-230A(1)(a) of the Act:
(a) if there is no alternative valuation method for the interest - the family law value is specified; or
(b) if there is an alternative valuation method for the interest - the alternative valuation method is specified.
(3) Subsection (4) applies to a superannuation interest at a particular time, if, at that time, the interest supports a superannuation income stream provided under a contract or rules that meet the standards of subregulation 1.06A(2) of the SIS Regulations.
(4) For the purposes of paragraph 307-230A(1)(a) of the Act, the following value is specified:
(a) if section 307-230A.09 applies to the interest - the maximum commutation amount of the interest;
(b) otherwise - the value of the interest (within the meaning of section 307-205 of the Act).
307-230A.04 Total superannuation balance value - family law value
(1) This section applies in relation to a superannuation interest at a time occurring on a particular day if:
(a) a method or factor is approved to be used to determine the gross value of the interest on that day under section 62 or 70 of the Family Law (Superannuation) Regulations 2025; or
(b) Schedule 3, 5, 7 or 8 to that instrument sets out a method for determining the gross value of the interest on that day; or
(c) Schedule 6 or 9 to that instrument sets out a method for determining the value of the interest on that day.
(2) The superannuation interest has a family law value equal to:
(a) if paragraph (1)(a) of this section applies - the gross value of the interest on that day, determined using the method or factors approved for the interest as mentioned in paragraph (1)(a); or
(b) if paragraph (1)(a) does not apply, but paragraph (1)(b) applies - the gross value of the interest on that day, determined using the method mentioned in paragraph (1)(b); or
(c) if paragraphs (1)(a) and (b) do not apply, but paragraph (1)(c) applies - the value of the interest on that day, determined using the method mentioned in paragraph (1)(c).
(3) For the purposes of this section:
(a) treat a reference in Schedule 3, 5, 6, 7 or 9 to the Family Law (Superannuation) Regulations 2025 to "member spouse" as being a reference to "member"; and
(b) treat a reference in Schedule 3, 5, 7 or 8 to that instrument to the relevant date as being a reference to the day mentioned in subsection (1) of this section; and
(c) treat a reference in Schedule 6 or 9 to that instrument to the termination time as being a reference to the time mentioned in subsection (1) of this section; and
(d) disregard the words "provided by the trustee under section 90XZB or 90YZR of the Act" in subclauses 38(1) and (2) of Schedule 3 to that instrument; and
(e) disregard the words "as provided by the trustee under section 90XZB or 90YZR of the Act" wherever they occur in Schedules 3, 5 and 7 to that instrument; and
(f) disregard paragraph 44(2)(b) of that instrument (about self managed superannuation funds); and
(g) for any provision of the Family Law (Superannuation) Regulations 2025 that applies differently depending on the member's gender - treat the member as being male; and
(h) for any method or factor mentioned in subsection (2) that applies differently depending on whether there is, or will be, a reversionary beneficiary (within the meaning of Part VIIIB or VIIIC of that Act) - treat the member as if there is not, and will not be, a reversionary beneficiary.
307-230A.05 Total superannuation balance value - alternative valuation method
(1) This section applies in relation to a superannuation interest at a particular time if, at that time:
(a) the interest has a family law value; and
(b) a certificate is in force in relation to the interest under section 307-230A.06.
(2) The method specified in the certificate is the alternative valuation method for the interest.
307-230A.06 Total superannuation balance value - alternative valuation method: issuing certificates
Issuing certificates
(1) A superannuation actuary may issue a certificate under this subsection in relation to specified superannuation interests in a particular defined benefit fund if:
(a) the superannuation actuary is requested to do so by the trustee of the fund; and
(b) in the opinion of the superannuation actuary, a specified method for determining the value of the interests meets the requirements of subsection (3) at a specified time; and
(c) the specified method:
(i) was used by the trustee to determine the value of the interests just before 1 July 2026; or
(ii) if the trustee did not use a method to determine the value of the interests just before 1 July 2026 - is to treat the vested benefits total of an interest as being the value of the interest.
(2) The specified superannuation interests must be:
(a) all superannuation interests in the fund; or
(b) all superannuation interests in the fund of members who belong to a specified benefit category.
(3) The specified method meets the requirements of this subsection at a particular time if:
(a) all of the specified interests have family law values at that time; and
(b) were the specified method used to determine the value, at that time, of all of the specified superannuation interests, the value determined for each of at least 95% of those interests would be:
(i) not less than 90% of the family law value of the interest; and
(ii) not greater than 110% of the family law value of the interest.
(4) The certificate must:
(a) be in writing; and
(b) state:
(i) the name of the fund; and
(ii) the name of the superannuation actuary; and
(iii) that, in the opinion of the superannuation actuary, the specified method for determining the value of the specified interests meets the requirements of subsection (3) at the specified time.
When certificate is in force
(5) Subject to subsection (6), a certificate (the current certificate ) issued under subsection (1) in relation to superannuation interests in a defined benefit fund:
(a) comes into force at the specified time mentioned in subsection (1) (even if that time occurs before the certificate is issued); and
(b) ceases to be in force at the earliest of the following times:
(i) the end of 3 years starting when the certificate comes into force;
(ii) when the certificate is withdrawn under section 307-230A.07;
(iii) when another certificate that is issued under subsection (1) and that relates to any of the superannuation interests to which the current certificate relates comes into force.
(6) However, the certificate is not in force at a particular time (the balance time ) if:
(a) before the certificate is issued, the trustee of the fund gives to the Commissioner a statement under subsection 390-5(1) in Schedule 1 to the Taxation Administration Act 1953 in relation to an individual who holds any of the specified interests; and
(b) the statement contains the total superannuation balance value at the balance time of any of the specified interests.
307-230A.07 Total superannuation balance value - alternative valuation method: withdrawing certificates
Withdrawal by superannuation actuary
(1) A superannuation actuary must, at a particular time, withdraw a certificate issued under subsection 307-230A.06(1) in relation to superannuation interests in a defined benefit fund if:
(a) the certificate is in force; and
(b) the superannuation actuary, in the performance of the superannuation actuary's functions under the Act, this instrument, the SIS Act or the SIS Regulations, forms the opinion that the method specified in the certificate does not, at that time, meet the requirements of subsection 307-230A.06(3) of this instrument in relation to the interests.
(2) A withdrawal under subsection (1) of this section must be:
(a) in writing; and
(b) given to the trustee of the defined benefit fund.
Withdrawal by trustee
(3) A trustee of a defined benefit fund may withdraw a certificate issued under subsection 307-230A.06(1) in relation to superannuation interests in the fund at any time while the certificate is in force.
(4) A withdrawal under subsection (3) of this section must be in writing.
307-230A.08 Total superannuation balance value - vested benefits total
(1) This section applies in relation to a superannuation interest of an individual in a superannuation fund at a particular time (the application time ) if:
(a) under the rules of the fund, the superannuation interest in the fund:
(i) can never support a superannuation income stream; and
(ii) cannot cease in order to commence another superannuation interest in the fund that supports a superannuation income stream; and
(b) at the time (the test time ) 12 months before the application time:
(i) this section applied in relation to the interest, and the vested benefits total of the interest was 50% or less of the large superannuation balance threshold at the test time; or
(ii) if the interest arose in the 12 months before the application time as a direct result of the payment by a fund (the original fund ) of an involuntary roll-over superannuation benefit, relating to the cessation of an interest in the original fund (the previous interest ), to a successor fund - the previous interest did not exist; or
(iii) if the interest did not arise as a direct result of the payment of an involuntary roll-over superannuation benefit to a successor fund - the interest did not exist; and
(c) the interest does not support, and can never support:
(i) a military invalidity income stream; or
(ii) a pension to which any paragraph of subsection 307-70.02(1A) applies.
(2) A reference in paragraph (1)(a) to a superannuation income stream does not include a superannuation income stream under which an amount is payable to a person because of:
(a) the person's temporary inability to engage in gainful employment; or
(b) the person's permanent inability to engage in gainful employment for which the person is reasonably qualified by education, training or experience.
(3) The vested benefits total of the interest at a particular time is the total value of the superannuation benefits to which the individual would become entitled if, at that time, the individual:
(a) both:
(i) had the right to cause the superannuation interest to cease; and
(ii) voluntarily caused the superannuation interest to cease; or
(b) became entitled to a superannuation income stream that:
(i) was a SIS pension or an RSA pension; and
(ii) was supported by the superannuation interest; or
(c) became entitled to a deferred benefit of the superannuation interest.
(4) For the purposes of subsection (3), the total value mentioned in that subsection is to be worked out in accordance with accounting standards in force at the time mentioned in that subsection (even if the standard does not otherwise apply to the superannuation fund).
307-230A.09 Total superannuation balance value - maximum commutation amount
(1) This section applies to a superannuation interest at a particular time if, at that time:
(a) the interest supports a superannuation income stream provided under a contract or rules that meet the standards of subregulation 1.06A(2) of the SIS Regulations; and
(b) sections 307-205.02C, 307.205.02D and 307.205.02E of this instrument do not apply to the interest.
(2) The maximum commutation amount of the interest is the amount worked out under paragraph 1.06B(1)(c) of the SIS Regulations for the superannuation income stream at that time.