Some changes to Super : same-sex couples
As part of the Government’s wider initiative to give equality to same-sex couples, legislation has been recently passed to amend superannuation (and related) tax laws.
A major element of this reform is a change to the definition of both ‘spouse’ and ‘child’ to ensure same-sex partners and their children can receive equivalent tax treatment with respect to death benefits afforded to other spouses and children.
These amendments have been introduced with retrospective effect from 1 July 2008.
The new rules give equal status to same-sex partners by amending the definition of spouse to include a person who:
- is in a relationship that is registered under a State or Territory law (whether that person is the same sex or a different sex), or
- although not legally married to the person, lives with them on a “genuine domestic basis in a relationship as a couple” (ie it’s no longer required they are living as husband and wife).
The definition of ‘child’ has also been extended to recognise the children of same-sex couples.
The main areas impacted by this change that you may need to review if in a same-sex relationship include:
- Beneficiary Nominations : You may now be able to nominate your same sex partner as a spouse and also nominate the children of your relationship as beneficiaries.
- Spouse Contributions : A same-sex partner will now be able to contribute to their partner’s superannuation account as a spouse. From 1 July 2009, they may also be able to qualify for a contribution tax offset of up to $540 each year.
- Nomination of reversionary pensioner : If you have applied for a pension, a same sex partner may now be nominated as a reversionary beneficiary for their partner’s superannuation pension.
What do you need to do, if these changes relate to you? Review your existing superannuation account(s) to see what changes you may now make to reflect your current circumstances and desires. If you would like assistance in working through the paper challenges that this may bring, please contact us or your funds current adviser for assistance.