Thursday, 16 June 2016

Superannuation – Cap and Trade

The federal government in its May 2016 Budget indicated that it intended to make changes to the superannuation system that would limit the amount of contributions people would be able to make above and beyond their compulsory employer contribution, which may affect those engaging in a family law property settlement.
The proposed change highlights the difficulty that separated parties may have in re-earning superannuation post-separation.
This is particularly the case where one party decides not to take any superannuation so that they can retain another item, for example the family home. 
It is important to note however that the family law system has taken some pre-emptive action in this regard a number of years ago.
Cases that go to Court and are decided by a Judge will now often have superannuation earnt during a relationship split between parties.
This has the effect of ensuring that both parties are put in a position where they can save for retirement, even if it means some short term difficulty with property.
With that said, it is still entirely possible for parties to organise and come to an agreement between themselves to arrange their assets how they like.
The government’s proposed changes to how superannuation work should be fully considered by your family lawyer and incorporated into your family law settlement.
You can call our experienced lawyers to discuss your situation and whether you might be affected by the changes on 03 9614 7111.

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