It often takes a tragic story to bring home the need to change a law.
When 22-year-old Molly Wilkes died in 2022 after years of severe domestic abuse, her family faced a further shock. Under Australia’s superannuation laws, the man who had abused her was legally entitled to claim her superannuation death benefit. There was no discretion for the fund to block the payment.
Molly’s case, first brought to public attention by her mother Julie Adams, highlights a deeply disturbing gap in the law — one that allows family violence perpetrators to profit financially from their victims.
It is a loophole that no one would design intentionally, yet it has persisted for years.
Under current rules, a perpetrator of family violence can receive their victim’s super unless they are found to have directly caused the victim’s death. This can apply even where there is clear evidence of systemic abuse, including convictions for family violence offences, or where abuse contributed to the victim’s death. In such cases, trustees may have no legal ability to intervene.
That is why the Government’s reform proposals are welcome. Superannuation should never be used as an extension of abuse. It is time to close the loophole.
The proposed changes are grounded in well‑established legal principles. One option is to expand the existing forfeiture rule — which already prevents murderers from inheriting from their victims — to cover family‑violence‑related crimes. Another is to give super funds the power to withhold death benefits in substantiated cases of family violence, subject to clear evidence thresholds and independent assessment.
We caution against a proposed option to send cases to the courts, which would risk forcing grieving families into expensive and lengthy court processes with a perpetrator.
Our submission to Treasury also highlights the need for Government to consider similar victim-centred reforms for self-managed super funds, and ensure trustees can apply the proposed new law to different types of super arrangements such as reversionary pensions and defined benefit schemes. Leaving holes in the system would undermine reforms.
Superannuation plays a vital role in providing financial security for Australians and their families. It should never become a financial reward for violence or coercive control.
Closing this loophole is about ensuring the system does not compound injustice and that people who cause harm do not profit from it.
