Calls to allow WA de facto couples to split super
HESTA, the Western Australian community sector, and legal groups have called on the State Government to allow de facto couples to split their superannuation when their relationship ends by amending the Family Law Act.
The health and community services sector super fund said changing the act would end financial discrimination towards de facto couples and bring WA super policy in line with the rest of Australia.
HESTA chief executive, Debby Blakey, said de factor couples faced very different financial outcomes in the instance of a relationship breakdown than those who were married and that it was deeply unfair.
“The purpose of superannuation splitting laws is to allow super to be equitably divided between both parties when a relationship breaks down,” Blakey said.
“For many couples, super is likely to be their second biggest financial asset after their home, and accessing a fair property settlement shouldn’t be dependent on where you live in Australia.”
She noted that the inconsistency was likely to overwhelmingly disadvantage women and same sex couples.
“Women already retire, on average, with almost half the super of their male counterparts and are more vulnerable to poverty later in life. This financial discrimination further contributes to the gender super gap for WA women,” Blakey said.
While the Commonwealth Family Law Act was amended in 2008 to extend super splitting arrangements to de facto couples, WA remains outside the framework.
Blakey said the fund was in discussions with the State Government to widen its referral to the Commonwealth on all matters affecting super.
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
