Super info sharing system celebrates 1 year

It has been one year since the Visibility of Superannuation law came into effect and provided a superannuation information sharing system that hindered parties from hiding or under-disclosing their super assets in family law proceedings.

As part of the law, parties to family law property proceedings have been able to apply to the Federal Circuit and Family Court of Australia and access details of their former partner’s superannuation, reducing the ability of parties to conceal information and the time, cost and complexity of proceedings.

The Australian Institute of Superannuation Trustees (AIST)’s chief executive, Eva Scheerlinck, said data from the Australian Taxation Office (ATO) revealed over 1,600 requests for information had been made since 1 April last year, indicating its ability to help couples divide their property on a “just and equitable basis”.

“The fact that so many people have used the system in its first year of operation is testimony to the big difference it is making to the parties to these proceedings, particularly women, including those who have experienced family violence,” she said.

“It is another important step in improving the fairness of our $3.4 trillion retirement savings system, but much remains to be done to close the gender gap that sees women retiring with 40% less super than men.

“This is not only a function of them earning less on average than their male counterparts and taking more time out of the workforce to care for children and family but, in too many cases, they have had to leave difficult or violent relationships without their share of the super because it has been hidden.”

The legislation was also praised for its benefits in stopping family violence perpetrators from hiding super assets and undermining the financial security of their former partner, and for acknowledging the unpaid work in households completed by women at a loss to their own super.

“In just one year more than 1,600 people have used this scheme to rebuild their financial independence after separation,” Women’s Legal Service Victoria Legal Director Lisa Fowler said.

“For low-income families, superannuation is often the biggest – or only – asset of a relationship so it’s important that it can be fairly split when the relationship ends.”

“Accessing their partner’s super at the end of the relationship helps to address this contributing factor to the gender super gap and is a step to ensuring women are not punished financially for taking time out of the workforce to care for their families,” Women in Super CEO Jo Kowalczyk said.