Rodney Croome . gay advocate

Superannuation income splitting

This call-to-action comes from the ACT's LGBT action group, Good Process

The Dept of Treasury released a draft of regulations for the Super Contributions Splitting and invited comments from interested parties by Friday 11 November 2005.

Super Contributions Splitting will allow couples to re-allocate the money paid into super from their employer, salary sacrifice or personal ‘undeducted’ contributions, into their spouse’s account after the end of the financial year. Super Contributions Splitting will be extremely valuable to some couples, providing an opportunity for couples to build up their superannuation more tax effectively.

Unfortunately, Super Contributions Splitting in its current form will not be open to all couples. That’s because same-sex couples are not classified as ‘spouses’ under superannuation or taxation legislation, even though de-facto heterosexual couples are. So same-sex couples aren’t eligible for the spouse contribution rebate for low income spouses, or for reversionary pensions. (What was changed in 2004 was to introduce a new category of beneficiaries - ‘interdependent relationships’ who are eligible to receive concessionally taxed death benefits).

The commencement date for Super Contributions Splitting is proposed as 1 January 2006.

For the full draft regulations and the contacts for comments click
http://www.treasury.gov.au/contentitem.asp?NavId=&ContentID=1018

For more information about what is Super Contributions Splitting try this article http://www.dixon.com.au/sh.asp?id=sh23oct05

It’s important that the GLBTI community take up the opportunity to comment on these inequities when we have the opportunity, before further discrimination is entrenched in legislation.

We have prepared a template letter that you can use to respond to the Government’s
draft regulations. Please feel free to adapt or change as you see fit. Please also send a copy to Good Process so we can keep a track of how many responses are sent in, or if you identify any other issues that you may pick up. We will keep your identification and emails completely confidential

Please also send a copy to Good Process so we can keep a track of how many responses are sent in or if you identify other issues with the definitions. We will keep your identification and emails completely confidential.

Nerida Cole
good_process_act@hotmail.com
http://www.aidsaction.org.au/content/goodprocess/index.htm

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Super Splitting Comments
The Treasury
Langton Crescent
PARKES ACT 2600
or by email to: supersplitting@treasury.gov.au

Dear Sir or Madam,

I am writing to respond to the draft regulations for Superannuation Contributions Splitting released 12 October 2005.

All couples, regardless of their gender should be included in the category of "spouse" and thus allowed to participate in this valuable scheme.

Excluding some partnerships on the basis of gender from the status of "spouse", the status enjoyed by married and de facto heterosexual couples, marginalises same-sex relationships and by comparison, it also reduces their ability to plan for a secure retirement.

If you do not expand that definition of spouse, then I recommend that the draft regulations are expanded to allow people to split their superannuation contributions to a person who is in an "interdependency relationship" with them.

This would seem more in line with the Government’s plan to encourage people to build up their own superannuation and not rely on welfare. Surely all couples, regardless of their sex, should be encouraged to build up their superannuation.

Yours sincerely,

NAME
ADDRESS
DATE