Super system failing First Nations people: Report

First Nations Australians have faced systemic barriers accessing super, with rigid ID checks, poor service, and delays compounding inequality.

Independent research released by Impact Economics and Policy in collaboration with Mob Strong Debt Help and Super Consumers Australia has revealed that many First Nations peoples have been effectively shut out of the system and denied access to their own savings.

The research, conducted with 99 First Nations consumers across the East Arnhem region and 19 financial counsellors and caseworkers nationwide, has identified significant structural issues.

These include rigid identity verification processes that often prevent people from accessing their funds, widespread customer service failures marked by cultural insensitivity and poor communication, and digital-first systems that many participants found unusable.

Delays in death benefit payouts for First Nations claimants were also common, compounding trauma for families already grieving.

The report has called on the Commonwealth government and the superannuation industry to urgently address these issues.

Recommendations include greater resourcing for financial counselling and legal support for First Nations peoples, legislated mandatory customer service standards for superannuation funds, and improved identity verification processes that are culturally safe and better supported by the Australian Taxation Office (ATO) and super funds.

Although First Nations people have been most severely affected, the research points out that these systemic flaws also impact other groups.

Australians living in rural or remote areas; older people; and those with limited digital skills, financial literacy, or English language proficiency also face barriers.

The report warned that unexpected life events or personal losses can make anyone vulnerable in the current system, and that equitable access to superannuation is in the interests of all Australians.

The research was conducted during Financial Wellness Week, held from 12–16 August 2024 across five remote towns in the East Arnhem region. It revealed widespread challenges.

More than half of participants (53 per cent) were unable to get through to their super fund, while 42 per cent did not understand the information they were given.

A further 38 per cent struggled to locate their super, including lost or unclaimed accounts.

When asked to rate their understanding of what their fund had told them at the event, participants gave an average score of just 3.2 out of 5.

That figure dropped to 2.8 among those over 60 and those who needed help reading English.

Compounding these difficulties, digital access was limited. Only 23 per cent had access to email or myGov, and just 59 per cent had internet access, compared to 85 per cent who had access to a phone.