The Association of Superannuation Funds of Australia (ASFA), Women in Super, and the Super Members Council (SMC) have urged the Australian government to reform superannuation death benefit laws to stop family violence perpetrators from being able to claim their victim’s super.
In letters to Assistant Treasurer Stephen Jones and other key ministers, the industry bodies have called for legal changes to ensure family violence perpetrators do not profit from their abuse.
Under existing laws, an abuser can receive a victim’s super death benefit unless they are the direct cause of that person’s death.
The industry bodies said this currently applies even if the perpetrator has been convicted of family violence offences or in cases when there was systemic abuse that indirectly contributed to the cause of the victim’s death.
“The proposed reforms are not just about preventing financial gain for perpetrators; they are about sending a clear message that Australia will not tolerate abuse in any form,” said Women in Super CEO Jo Kowalczyk.
“This is an opportunity for us as advocates and policymakers to work together to ensure super is not being used as a mechanism for financial abuse.”
SMC CEO Misha Schubert said that perpetrators getting their victim’s super death benefit “is an extension of the abuse” and noted perpetrators should not profit from their crimes.
In the joint letter to the government, the super bodies’ proposed reforms include allowing super funds to withhold death benefits in substantiated cases of family violence.
They said “clear and robust evidence standards”, judged by an independent body such as a court, “would ensure procedural fairness and due process”.
They also proposed expansion of the Forfeiture Rule to family violence crimes, which currently provides that when a person is criminally responsible for the death of another person, they forfeit the right to inherit.
“Our sector is unified in the belief that victims of family violence should not be further victimised through the misuse of the superannuation system,” said Mary Delahunty, CEO of ASFA.
“The reforms we are calling for will be a critical step towards ensuring that people’s superannuation is protected and not used as a financial reward for perpetrators.”
She said that the reforms are targeted towards “standing up for victims of family violence”.
“We are committed to working with the Government to make these necessary changes to protect those who have been wronged, not those that have caused harm,” Delahunty said.
