Family violence shouldn't alter super rules

The rules around the early release of superannuation should not be altered to take account of family violence issues, according to the Association of Superannuation Funds of Australia (ASFA).

However, in a submission to the Australian Law Reform Commission, ASFA indicated it would not be opposed to the implementation of measures to protect members who had been coerced into transferring contributions to their spouse.

The ASFA submission, discussing an issues paper about dealing with employment and superannuation within Family Law and Commonwealth Law, made clear that while the organisation would consider the matters raised in the issues paper, its initial reaction was the early release of super “should not be broadened to include family violence issues”.

The submission also vetoed the suggestion that fund trustees should be obliged to consider whether a transfer request to a spouse under the super splitting regime was made as a result of coercion.

ASFA said that it did not consider it practical to expect the trustee to make enquiries about family violence before actioning a split, but conceded that the issue should be taken into account if a member then separately made contact with the trustee advising they had been under duress.

The submission said ASFA had no objection to a claw-back provision being introduced to protect the interests of members who had been coerced into transferring contributions to their spouse.

However, it said ASFA would be concerned to ensure that such a provision operated by way of a decision made by the Family Court or other Court and which directed the trustee to return the claw-back amount.