The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2021 was registered on 17 June 2021. It specifies the interest rate to be used for adjusting the “base amount” allocated in a court order or a superannuation agreement under the Family Law Act 1975 that splits a future defined benefit superannuation interest or an interest in a self-managed superannuation fund (SMSF). Where the adjustment period is the financial year beginning on 1 July 2021, the interest rate is set at 0.057 (unchanged from 2020-21) for the purposes of reg 45D(3) of the Family Law (Superannuation) Regulations 2001. This 0.057 rate (5.7%) is 2.5 percentage points above the percentage change in the original estimate of full-time adult ordinary time earnings for all persons in Australia as published by the Australian Bureau of Statistics for the year ending with the November 2020 reference period (Exp Stat, para 16).

Federal Register of Legislation: Determination, Explanatory Statement; LTN 115, 18/6/21]

[Tax Month – June 2021]

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