Who must comply with Superannuation flagging on separation?
The applicability test for Superannuation flagging on separation (AGD), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has industry: Superannuation trustees.
What the obligation is
On separation — super interest splittable under Pt VIIIB Family Law Act.
Part VIIIB of the Family Law Act 1975 allows splittable payments from a superannuation interest to be allocated between the parties to a marriage or de facto relationship, either by agreement or by court order, and overrides any contrary law or trust deed. A superannuation interest is treated as property for property settlement. A payment split can be made by a superannuation agreement or flag lifting agreement, or by a court splitting order. A payment flag freezes the interest: under a flagging agreement, or a court flagging order under s 90XU, the trustee must not make any splittable payment until the flag is lifted by agreement served on the trustee or ended by the court, and may be ordered to notify both spouses when a payment next becomes payable. Trustees must also answer prescribed information requests so parties can negotiate.
The applicability test
Applies when the business has industry: Superannuation trustees.
How the regulator frames it: Trustees of eligible superannuation plans holding an interest of a separating member, who must give information, observe payment flags and implement splits; and separating spouses and de facto partners, and their lawyers, using agreements or court orders to deal with super.
What triggers it: A spouse's information request with the prescribed declaration; service of a superannuation agreement, flag lifting agreement, splitting order or flagging order on the trustee; or a successor fund transfer of a flagged interest.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (1 of 35: yes; 34 of 35: no).
| Industry | Answer |
|---|---|
| Superannuation trustees | Yes |
| No | 34 other industries |
Business structure and size
Structure does not change the answer in superannuation trustees: for every structure the answer is "yes".
Size does not change the answer in superannuation trustees: at every size band the answer is "yes".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in superannuation trustees with 6–19 employees, turnover $1M–$3M: applies. Industry: Superannuation trustees.
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires industry: Superannuation trustees.
What you must do, and when
- When due
- Information must be provided in accordance with the regulations after a valid application; a payment flag applies from the operative time until lifted; notification of the next splittable payment is due within the period set in a flagging order.
- Frequency
- When a triggering event occurs
- Evidence to keep
- Information requests, declarations and the trustee's responses (which must not disclose the member's address to the spouse); served superannuation agreements, flag lifting agreements and court orders; records showing no splittable payment was made while a flag operated; notices to member and non-member spouses; payment split calculations and implementation records.
- Status
- Current
- Priority
- Medium
Penalty for not complying
Maximum penalty: A trustee who makes a splittable payment while a payment flag is operating, fails to provide required information, or discloses the member's address to the spouse commits an offence of 50 penalty units ($18,200), or 250 penalty units ($91,000) for a body corporate under s 4B(3) of the Crimes Act 1914 (Family Law Act 1975 ss 90XL(4), 90XZB).
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Obligations with the same applicability test
If this obligation applies to you, so do these 4: the engine uses the same rule for each.
What usually applies alongside it
Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:
Where it sits in the corpus
Rules Mate tracks 2 published obligations tagged "family law", 0 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated medium priority, and is triggered by events.
Regulator, legislation and tools
Regulated by Attorney-General's Department.
AGD: Federal legal policy + administration of justice + national security law + privacy + FOI.
Family Law Act 1975: Federal family law — divorce, parenting, property settlement, super splitting, family violence orders.
Free tools that help with this obligation:
Questions
- Who must comply with Superannuation flagging on separation?
- Applies when the business has industry: Superannuation trustees.
- Does Superannuation flagging on separation apply to sole traders?
- Yes. Looking in superannuation trustees and every size band, the engine's answer for a sole trader is: yes.
- Does Superannuation flagging on separation apply to businesses with 1–5 employees?
- Yes (1–5 employees, turnover $100K–$1M).
- When is "Superannuation flagging on separation" due?
- Information must be provided in accordance with the regulations after a valid application; a payment flag applies from the operative time until lifted; notification of the next splittable payment is due within the period set in a flagging order.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.