On Thursday, a parliamentary inquiry made a unanimous set of recommendations for reform across multiple sectors including superannuation, to address financial abuse. Included was a recommended law change to stop abusers from receiving their victim’s super.
Under existing laws, an abuser can receive a victim’s superannuation death benefit unless they are the direct cause of that person’s death. This applies even if the perpetrator has been convicted of family violence offences, or in cases when there was systemic abuse which indirectly contributed to the cause of the victim’s death. If the abuser is the beneficiary, the super fund making the payment has no discretion under the law.
This a positive next step toward legislating greater protections for victims of family violence and financial abuse and comes not long after the super sector made a unified call for urgent legal reform to stop abusers from inheriting their victims’ super. Back in August, the Super Members Council coordinated a partnership with ASFA and Women in Super and gave evidence to the same Parliamentary inquiry that released its report yesterday. The Super Members Council, ASFA and Women in Super also wrote to Assistant Treasurer Stephen Jones and other key Ministers asking them to reform super’s death benefit laws.
SMC has received significant support during this campaign to recognise the need for change, including from Julie Adams, mother of Molly Wilkes – a beautiful and kind young woman who endured a history of abuse before her death by suicide. As Julie outlined in her own submission to the inquiry, despite the history of abuse, Molly’s super fund was forced by law to pay her super to her abuser.
Amid an epidemic of family violence in Australia it’s uplifting to see momentum for change build so quickly and unanimously.
Further progress on advice reforms
Last week the Government released its second policy response (tranche II) to the Quality of Advice Review.
SMC welcomed the reforms released on Wednesday, which promise to help meet a huge need in the Australian community for trusted, accessible information in the best interests of super fund members.
Getting more Australians access to simple information and advice is the huge missing piece of the retirement puzzle, and the announcement is welcome progress in addressing the vast advice gap.
Most super fund members just want simple information to be able to calculate their total retirement income for them and their family. This package of reforms will enable that urgent need to be met.
The next step in the process is to release exposure draft legislation. SMC looks forward to working with Government, Parliament and all key stakeholders to pass these crucial reforms.
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