Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026 (F2026L00726)

Schedule 3   Family law splits

Part 1   Main amendments

Income Tax Assessment (1997 Act) Regulations 2021

2   At the end of Subdivision 307-D

Add:

307-230A.10 Total superannuation balance value - family law payment splitting (non-member spouse)

(1) This section applies at a particular time (the application time ) if:

(a) a superannuation interest (the member spouse's interest ) is subject to a payment split; and

(b) the circumstance prescribed by subsection 307-230.01(1) exists in relation to the member spouse's interest; and

(c) under subsection 307-230(3) of the Act, the non-member spouse in relation to the member spouse's interest is treated as having a superannuation interest (the non-member spouse's interest ) because the member spouse's interest is subject to the payment split; and

(d) the unsplit total superannuation balance value is greater than nil.

(2) The unsplit total superannuation balance value is the total superannuation balance value of the member spouse's interest at the application time (disregarding the payment split).

Base amount payment splits

(3) For the purposes of paragraph 307-230A(1)(a) of the Act, and subject to subsection (9) of this section, if:

(a) the payment split is a base amount payment split; and

(b) an adjusted base amount applies to the non-member spouse at the application time; and

(c) subsection (5) does not apply;

the adjusted base amount in relation to the non-member spouse on the day on which the application time occurs is specified in relation to the non-member spouse's interest.

(4) For the purposes of paragraph 307-230A(1)(a) of the Act, and subject to subsection (9) of this section, if:

(a) the payment split is a base amount payment split; and

(b) an adjusted base amount does not apply to the non-member spouse at the application time; and

(c) subsection (5) does not apply;

the base amount allocated to the non-member spouse, within the meaning of section 72 of the Family Law (Superannuation) Regulations 2025, is specified in relation to the non-member spouse's interest.

(5) For the purposes of paragraph 307-230A(1)(a) of the Act, and subject to subsection (9) of this section, if:

(a) the payment split is a base amount payment split; and

(b) the member spouse's interest is in the retirement phase; and

(c) paragraph 85(1)(a) of the Family Law (Superannuation) Regulations 2025 applies in relation to the member spouse's interest;

the value worked out using the following formula is specified in relation to the non-member spouse's interest:

where:

transition factor has the same meaning as in subsection 85(2) of the Family Law (Superannuation) Regulations 2025.

Percentage payment splits

(6) For the purposes of paragraph 307-230A(1)(a) of the Act, and subject to subsection (9) of this section, if:

(a) the payment split is a percentage payment split; and

(b) neither Division 2 of Part 4, nor Division 3 of Part 5, of the Family Law (Superannuation) Regulations 2025 applies to the payment split;

the value worked out using the following formula is specified in relation to the non-member spouse's interest:

(7) For the purposes of paragraph 307-230A(1)(a) of the Act, and subject to subsection (9) of this section, if:

(a) the payment split is a percentage payment split; and

(b) neither Division 2 of Part 4, nor Division 3 of Part 5, of the Family Law (Superannuation) Regulations 2025 applies to the payment split; and

(c) section 41 or 48 of the Family Law (Superannuation) Regulations 2025 applies to the member spouse's interest;

the value worked out using the following formula is specified in relation to the non-member spouse's interest:

where:

accrued benefit multiple at separation has the same meaning as in section 41 or 48 of the Family Law (Superannuation) Regulations 2025 (whichever is relevant).

later accrued benefit multiple means:

(a) if the non-member spouse's interest is in the retirement phase at the application time - the accrued benefit multiple at payment (within the meaning of section 41 or 48 of the Family Law (Superannuation) Regulations 2025, whichever is relevant); or

(b) otherwise - the member spouse's accrued benefit multiple, as defined in the governing rules of the superannuation plan in which the member spouse's interest exists, at the application time.

(8) For the purposes of paragraph 307-230A(1)(a) of the Act, and subject to subsection (9) of this section, if:

(a) the payment split is a percentage payment split; and

(b) Division 2 of Part 4, or Division 3 of Part 5, of the Family Law (Superannuation) Regulations 2025 applies to the payment split; and

(c) section 42 or 49 of the Family Law (Superannuation) Regulations 2025 applies to the member spouse's interest;

the value worked out using the following formula is specified in relation to the non-member spouse's interest:

Effective waiver notices

(9) For the purposes of paragraph 307-230A(1)(a) of the Act, if the non-member spouse has served an effective waiver notice for the purposes of section 90XZA or 90YZQ of the Family Law Act 1975 in relation to the member spouse's interest, the total superannuation balance value of the non-member spouse's interest is nil.

Multiple payment splits

(10) Subsection (11) applies if, at the application time, there is more than one payment split to which paragraphs 307-230A.11(1)(a), (b) and (c) apply in relation to the member spouse's interest.

(11) In applying subsection (2) of this section and section 307-230A.11 to work out the total superannuation balance value of the non-member spouse's interest mentioned in paragraph (1)(c) of this section in relation to one of those payment splits, disregard:

(a) that payment split; and

(b) any of those payment splits that has a later operative time (within the meaning of Part VIIIB or VIIIC (as the case may be) of the Family Law Act 1975).

307-230A.11 Total superannuation balance value - family law payment splitting (member spouse)

(1) This section applies at a particular time if:

(a) a superannuation interest (the member spouse's interest ) is subject to a payment split; and

(b) the circumstance prescribed by subsection 307-230.01(1) exists in relation to the member spouse's interest and the payment split; and

(c) under subsection 307-230(3) of the Act (as it applies in relation to the payment split), the non-member spouse in relation to the member spouse's interest is treated as having a superannuation interest (the non-member spouse's interest ) because the member spouse's interest is subject to the payment split; and

(d) the unsplit total superannuation balance value is greater than nil.

(2) The unsplit total superannuation balance value is the value that would be the total superannuation balance value of the member spouse's interest at that time (disregarding the payment split).

(3) For the purposes of paragraph 307-230A(1)(a) of the Act, the value worked out using the following formula is specified in relation to the member spouse's interest:

(4) However, if the result of the formula in subsection (3) is less than nil, the total superannuation balance value of the member spouse's interest is nil.

Effective waiver notices

(5) For the purposes of the formula in subsection (3) of this section, disregard subsection 307-230A.10(9).

Multiple payment splits

(6) If, at the time mentioned in subsection (1), there is more than one payment split to which paragraphs (1)(a), (b) and (c) apply in relation to the member spouse's interest:

(a) for the purposes of subsection (2), disregard all of those payment splits; and

(b) treat the reference in the formula in subsection (3) to the total superannuation balance value of the non-member spouse's interest as being a reference to the sum of the total superannuation balance values of the superannuation interests that all of the non-member spouses in relation to the member's interest are treated as having because of those payment splits.

Interaction with other provisions of this Subdivision

(7) Sections 307-230A.01 and 307-230A.02 have effect subject to this section.