Draft legislation released on improving visibility of super assets

The government is aiming to complete its electronic information-sharing mechanism between the ATO and the Family Law Courts to allow superannuation assets to be readily identified during family law proceedings. Allowing the ATO to provide this information to the courts will ensure more just and equitable superannuation splitting outcomes.

Minister for Superannuation and Financial Services Jane Hume said this exposure draft legislation supports the government’s commitment to improve the visibility of superannuation assets in family law proceedings. 

“The draft legislation provides for a party to family law property proceedings in the Family Court of Australia, Federal Circuit Court of Australia and Family Court of Western Australia to apply to the court to request their former partner’s superannuation information from the ATO,” Ms Hume said.

“The bill will also authorise the ATO to disclose superannuation information to court registry staff for the purpose of use by the parties for relevant family law proceedings.”

Once commenced, the new information-sharing process will make it harder for parties to hide or under-disclose their superannuation assets in family law proceedings, and will reduce the time, cost and complexity for parties seeking accurate superannuation information.

The data-sharing scheme was announced more than two years ago by the government in its 2018 Women’s Economic Statement.

This follows the Women’s Legal Service Victoria’s report, which identified that the lack of visibility of super assets during family law proceedings could exacerbate the financial hardship experienced by women.

AIST CEO Eva Scheerlinck had also previously stated that the superannuation industry and women’s advocates have been calling on the government to urgently implement the data-sharing scheme to improve the financial wellbeing of victims of financial abuse, as superannuation is often their biggest or only asset in these relationships.

The draft legislation and supporting materials are available on the Treasury website, and stakeholders are encouraged to provide their feedback. Consultation will close on 28 June 2021.