A group of superannuation bodies has called for legislative reform to prevent perpetrators of domestic abuse and family violence from claiming super death benefit payments.
The Association of Superannuation Funds of Australia (ASFA), Super Members Council (SMC) and Women in Super made their concerns clear in a joint letter addressed to Financial Services Minister Stephen Jones.
In the letter, the bodies pointed to the fact individuals who have committed violence against a spouse can still be entitled to claim their superannuation benefits.
This is the case even if the perpetrator has been convicted of family violence offences or when there was systemic abuse that indirectly contributed to the victim’s cause of death.
This situation arises because the Superannuation Industry (Supervision) Act may consider a perpetrator as the only eligible dependant for death benefits.
Depending on a superannuation fund’s governing rules and trust deed, the fund may be legally obliged to pay the death benefits to the dependant.
To that end, the groups called for reforms allowing superannuation funds to withhold death benefits in cases of family violence, with an independent body appointed to adjudicate any abuse or violence claims.
They also proposed extending the forfeiture rule to these cases, which prevents individuals who are criminally responsible for another’s death from establishing a claim on their estate.
“Our sector is unified in the belief that victims of family violence should not be further victimised through the misuse of the superannuation system,” ASFA chief executive Mary Delahunty said.
“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.
“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.”
Women in Super chief executive Jo Kowalczyk noted the proposals were not only put to the government to prevent those who commit violence from profiting, but also to send a strong message that abuse will not be tolerated, a sentiment with which SMC chief executive Misha Schubert concurred.
“Perpetrators should not profit from their crimes. It’s time to close this legal loophole to protect victims of family violence and financial abuse. A perpetrator getting their victim’s super death benefit is an extension of the abuse and the super sector has come together to call for urgent reform,” Schubert stated.
