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The peak super body has strongly welcomed the parliamentary joint inquiry into stopping abusers from receiving their victims’ superannuation.
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SMC endorses Parliament move to amend death beneficiary laws
09 December 2024
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Urgent legal reform was called for through a parliamentary inquiry to end abusers being able to inherit their victims' super which was endorsed in a unanimous multi-partisan movement.
In the report produced by the parliamentary joint inquiry into financial abuse, law changes to stop abusers from receiving super from their victims were recommended.
Changes called for in the inquiry included changes to super’s death benefit law so that a mechanism to deem a beneficiary invalid if they were a perpetrator of domestic and family abuse against the deceased.
Alongside Women in Super and the Association of Superannuation Funds of Australia, the Super Members Council (SMC) strongly advocated for the submission and its recommendations.
According to the SMC, the reform call had strong cross-sector support, with the sector in disbelief that violent individuals may profit from domestic violence.
Under existing laws, an abuser can receive a victim’s superannuation death benefit unless they were the direct cause of that person’s death. The SMC said this also applied even if the perpetrator had already 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.
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It was also noted that if the abuser was the beneficiary, the super fund making the payment had no discretion under the law.
SMC CEO Misha Schubert thanked all committee members for pursuing the much-needed reform led by senator Deborah O’Neill and deputy chair Alex Hawke.
“A perpetrator getting their victims super death benefit is an extension of the abuse, and we thank senators for hearing key evidence from the sector and advocates recommending this crucial reform,” Schubert said.
“The sector is united in calling for reform and sending a clear message that abuse is not tolerated in any form. We strongly support the government and parliament moving to close this legal loophole and protect victims of family violence and financial abuse.”
The sector’s peak bodies wrote to Assistant Treasurer Stephen Jones and other key ministers, requesting reform to the super death benefit laws.
Proposed reforms included:
· Expanding the forfeiture rule to family violence-related crime which would prevent murderers from inheriting their victim’s super.
· Engagement in legislative reforms that would allow super funds to withhold death benefits in substantiated cases of family violence. This would include clear and robust evidence standards, judged by an independent body such as a court would ensure procedural fairness and due process.
The SMC said it also welcomed the recommendations for a review of the COVID-19 early release of super scheme and victims/survivors coerced into withdrawing money and for considering a scheme to restore balances to those who were coerced.
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