Accumulation Superannuation and Consent Orders.

Everything to know about Accumulation Superannuation and Consent Orders, and Consent Orders.

• Splitting an Accumulation superannuation interest is generally much more straightforward than splitting a Defined Benefit interest because the value is a tangible account balance rather than a complex future promise.

  Below is the guide to understanding the mechanics, legal process, and taxation implications of Accumulation superannuation and Consent Orders.

The Core Concept: What is it?

• Accumulation Fund: This is the standard “pot of money” style fund (e.g., Australian Super, Sunsuper, Hostplus, Retail funds). You and your employer contribute money, it gets invested, and the balance grows.
• The Difference: Unlike Defined Benefit funds, the value is the account balance. If the statement says you have $100,000, that is generally the value for family law purposes.

Step 1: Valuation (The Easy Part)

For most accumulation funds, you do not need an expensive actuarial valuation.

• Member Statement: The most recent member benefit statement is usually sufficient evidence of value for the Court.
• Form 6: If you need the exact up-to-date figure (or if the other party is hiding the value), you can still send a Form 6 Declaration to the Trustee to force them to release the current account balance and details.
• SMSFs: If the accumulation interest is inside a Self-Managed Super Fund (SMSF), you will need the most recent financial statements and potentially a valuation of the underlying assets (e.g., property held by the fund) to know the true value of the member’s interest.

Step 2: Choosing the Split Method

You have two main ways to describe the split in your Consent Orders.

Option A: Base Amount Split (Highly Recommended)

You allocate a specific dollar figure to the non-member spouse (e.g., “$50,000”).

• Certainty: You know exactly how much is being moved.
• Interest: Between the time the orders are made and the time the fund actually moves the money, the “Base Amount” earns interest (adjusted base amount) so the non-member spouse doesn’t lose out on growth during the administrative delay.

Option B: Percentage Split of Accumulation superannuation and Consent Orders.

You allocate a percentage of the total account balance (e.g., “50%”).

• The Risk: Markets fluctuate. If the account balance drops between the day you agree and the day the fund processes the split, the dollar amount received will be lower than expected.
• Usage: This is less common for accumulation funds unless you specifically want to share the market risk/reward until the final transfer.

Step 3: The Legal Process (Consent Orders)

Even though accumulation funds are simpler, the Procedural Fairness rule still strictly applies.

1. Procedural Fairness (The 28-Day Rule)

You must send the draft Consent Orders to the Superannuation Trustee before filing with the Court.

• Why? The Trustee checks if the orders comply with the Superannuation Industry (Supervision) Act (SIS Act). They need to ensure they can legally process the rollover you are requesting.
• The Wait: You must give them 28 days to object.
• The Outcome: They will send a letter of non-objection. You must file this with the Court.

1. Filing and Sealing

Once you have the Trustee’s consent, you file the Application for Consent Orders and the Minutes of Consent with the Family Court.

1. Implementation (The Rollover)

Once the Court seals (stamps) the orders:

1. Serve the Orders: You send the sealed orders to the Trustee.
2. Transfer Request: The non-member spouse (the person receiving the money) usually needs to complete a form specifying where they want the money sent.
   • Note: The money cannot be taken as cash (unless you are already retired/over preservation age). It must be rolled over into the non-member spouse’s own superannuation account.

5. Taxation Implications of Accumulation superannuation and Consent Orders.

• Immediate Tax: There is no immediate tax payable when the split occurs. It is treated as a rollover.
• Proportioning Rule: Just like DB funds, you cannot “cherry-pick” the tax components. If the member’s account is 80% “Taxable Component” and 20% “Tax-Free Component,” the amount transferred to the ex-spouse will have the exact same 80/20 ratio.
  • Why this matters: When the person receiving the money eventually retires and withdraws it, the “tax-free” portion comes out tax-free. The “taxable” portion might be taxed (depending on age).

Step 6 Fees

• Splitting Fee: Most accumulation funds charge a fee to process the split (typically between $40 and $100). The Orders usually specify who pays this (often split 50/50 or paid by the member).

Summary Checklist for Accumulation Splitting

1. 1. Get the latest Member Statement or complete a Form 6.
   2. Choose “Base Amount” (Dollars) or “Percentage”.
   3. Send draft orders to the fund and wait 28 days.
   4. Submit to the Court with the Trustee’s letter.
   5. Send sealed orders to the fund + provide details of the receiving fund (the “rollover” account).

Australia’s Largest Superannuation Funds – Accumulation superannuation and Consent Orders