Submission – Preventing perpetrators from accessing victims’ super death benefits

The Super Members Council (SMC) strongly endorses the Government’s commitment to tackle family and domestic violence from every angle and close loopholes that entrench harm or reward abuse.

We welcome the proposals outlined by Treasury in the current consultation to codify a forfeiture-like rule to give legislative certainty to superannuation trustees and develop a framework to let trustees consider domestic and family violence in decisions about the distribution of members’ death benefits.

The proposals enable trustees to set aside a potential beneficiary who would otherwise be eligible to inherit due to a dependency relationship recognised under superannuation law, a binding death nomination made by the deceased member, or a prescription in the fund’s governing rules.

Together, these much-needed reforms will give trustees new tools to address some of the heartbreaking member stories where a fund’s hands are currently tied in circumstances that are not fair, reasonable and aligned with community expectations.