Both the Association of Superannuation Funds of Australia (ASFA) and Super Members Council (SMC) have welcomed the federal government’s announcement it will reform the retirement savings death benefits laws to prevent family violence perpetrators profiting from their actions.
The current legal framework allows an abuser to receive a victim’s superannuation death benefits unless they are the direct cause of that individual’s death. This is possible even in cases where systemic abuse indirectly contributed to the cause of the victim’s death and if the perpetrator has been convicted of family violence offences.
“For too long, perpetrators of family violence have been able to profit from their victims’ death, accessing their super after they died,” ASFA chief executive Mary Delahunty noted.
“This insidious legal loophole is wrong and we welcome the government’s announcement they will start working to close it.”
Early this year, ASFA, the SMC and Women in Super pushed for reform to the law in their combined testimony to the Parliamentary Joint Committee in Relation to Financial Abuse.
Specifically, the three industry bodies made two recommendations, the first being for the government to expand the forfeiture rule via an amendment to the Superannuation Industry (Supervision) Act 1993 to prevent perpetrators from inheriting money from their victims.
The organisations also called for Canberra to increase superannuation funds’ investigative powers and evidence standards, which would allow them to withhold death benefit payments in substantiated cases of family violence until the legal matter has been resolved.
“These reforms are about standing up for victims of family violence,” SMC chief executive Georgia Brumby said.
“A perpetrator getting their victim’s super death benefit is an extension of the abuse. The intention to introduce these reforms is a critical step towards ensuring that people’s superannuation is protected and not used as a financial reward for perpetrators.
“We call on all political parties and independent candidates to pledge their support for these reforms to protect those who have been wronged and not those that have caused harm.”
