On 22 August 2024, the Albanese Government introduced the next stage of reforms by announcing the Family Law Amendment Bill 2024 (the “Bill”). This Bill addresses aspects relating to family law property and financial matters in Australia by building upon the Government’s landmark family law reforms, which took effect on 6 May 2024 (read our article here).
This Bill seeks to amend the Family Law Act 1975 (Cth) by making the division of property and finances under the family law system safer and more straightforward for separating couples to navigate and aims to ensure that the financial and property aspects of a relationship breakdown are resolved safely and fairly, especially in matters where family violence has occurred. This Bill was informed by extensive research[1], consultation[2], and feedback.[3] To understand the interplay between this Bill and family violence, click here.
This Bill will:
- specify the approach that a court will take when deciding the division of property and finances, making the law more transparent for all parties;
- ensure the economic impact of family violence is considered where relevant as part of dividing property and finances;
- ensure that the care and housing needs of children are considered in financial and property decisions;
- ensure that complete financial information is disclosed at the earliest opportunity;
- expand the court’s ability to use less adversarial approaches in all types of proceedings (not just for children’s matters);
- enhance the operation of Children’s Contact Services; and
- clarify various aspects of family law and support the operation of the Federal Circuit and Family Court of Australia (“FCFCOA”), which supports parties in raising family violence risks safely and ensures the safe conduct of proceedings.
This Bill is compatible with the human rights and freedoms recognised by legislation[4], which was achieved by making consequential amendments to other major and relevant items of legislation [5]. Similar legislation amendments enacted in 2023 established new information-sharing arrangements[6] that protect against family safety risks and prioritise the best interests of children at the centre of all parenting decisions in family law matters.
The effect of this Bill
This Bill seeks to amend Parts VIII and VIIIAB of the Family Law Act 1975 (Cth) to organise aspects of common law and provide greater clarity. The effective operation of these Parts is critical to ensure that the economic consequences of a relationship breakdown are resolved fairly and safely. This aims to support users when reading the legislation by setting out the court’s approach to resolving property matters. These provisions serve as a useful guide for resolving property disputes outside the family law courts.
The Bill contains five Schedules with amendments as follows:
- Schedule 1 will enhance a court’s control over financial and property proceedings and ensure appropriate evidence is submitted to address family violence. Further, it codifies that full financial information is disclosed early to encourage timely dispute resolution. Lastly, it strengthens the Arbitration regime to support separated couples using alternative dispute resolution.
- Schedule 2 provides a regulatory framework for Children’s Contact Services. This framework will enable regulations to encourage the provision of child-focused, high-quality contact services for children whose families are unable to safely manage contact arrangements on their own.
- Schedule 3 protects against the harmful disclosure of evidence from professional confidential relationships. It prevents perpetrators of family violence from abusing the family law system to access private records, which can harm a victim-survivors well-being and deter them from seeking future support. These amendments ensure sensitive information is not misused in family law proceedings and may help families safely engage with health services.
- Schedule 4 will insert a new regulation to the Family Law Act 1975 (Cth) that requires superannuation trustees to review how they calculate the value of superannuation interests. This ensures a court will have accurate and fair valuations when dividing property for separating couples.
- Schedules 3 and 4 include key changes that will improve case management in family law proceedings, reduce costs and stress for parties, and promote safer outcomes for children and families.
- Schedule 5 will provide for a statutory review of the amendments made by this Bill.
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[1] The Henderson Inquiry; the ALRC Inquiry; and, the JSC inquiry.
[2] With various women’s safety advocacy groups.
[3] Draft legislation from family law stakeholders, including the family law courts, the legal assistance sector, private legal professional bodies, and family law service providers.
[4] Human Rights (Parliamentary Scrutiny) Act 2011 (Cth) s 3.
[5] Evidence Act 1995 (Cth); FCFCOA Act 2021 (Cth); Federal Proceedings (Costs) Act 1981 (Cth); Child Support (Registration and Collection) Act 1988 (Cth); Child Support (Assessment) Act 1989 (Cth).
[6] Family Law Amendment Act 2023 (Cth); Family Law Amendment (Information Sharing) Act 2023 (Cth).
