Mary died after suffering domestic violence. Her abuser might financially benefit

Superannuation laws mean death benefits can be paid to a person who perpetrated family or domestic violence against the deceased. (ABC Kimberley: Andrew Seabourne) Superannuation laws can result in death benefits being paid to a person who perpetrated family or domestic violence against the deceased. The federal government is reviewing these laws and has released a consultation paper with possible policy changes. Industry advocates are concerned the consultation paper does not take into account the nuance of domestic violence, and could further traumatise loved ones. Link copiedShareShare articleSarah* has spent the last few months grieving the death of her daughter Mary*, who died in a car accident as she was fleeing domestic violence. Her distress has been amplified, after discovering the perpetrator of that abuse could financially benefit from her daughter's death. Due to an ongoing police investigation into the domestic abuse allegations, the ABC cannot use their real names. Mary, who was in her 20s, had superannuation split across two funds. When Sarah contacted these funds asking them to freeze her daughter's accounts, she said she was told this wasn't possible. "They couldn't actually freeze any activity; they could allow me to make a claim, but he [the perpetrator] could also make a claim." Current superannuation laws mean death benefits can be paid to a person who perpetrated family or domestic violence against the deceased, despite evidence of abuse. Perpetrators of domestic violence and financial abuse continue to be able to access the superannuation benefits and life insurance proceeds of their victims. When a person dies, their superannuation and any associated insurance cover is paid out to their dependants, namely a spouse/de facto or children, or nominated beneficiary, through a legally binding nomination, or non-binding nomination. Sarah said while her daughter had not listed her perpetrator as a beneficiary, she also did not have a binding nomination in place. "[The super fund] explained to me that a de facto would be considered for the claim first and foremost because there were no children involved in this situation," Sarah said. Because Sarah was still listed on the rental where her abuser was living, he could still be seen as her de facto. She also said neither fund provided a clear avenue to disclose the abuse. "The questions on the forms are simply, 'Is there a domestic partner?'" she said. The federal government is reviewing superannuation laws, after industry stakeholders highlighted failings in the current system during a 2024 parliamentary inquiry. Treasury released a consultation paper with three new policy options in March. Industry advocates and experts had until mid-April to provide feedback. It has sparked mixed reactions about what best practice looks like and highlighted possible complications when considering reform. The first proposal by the federal government would allow a super fund to overrule a binding death benefit nomination if it believes "on a fair and reasonable basis" the chosen beneficiary has perpetrated abuse. The two other proposed options would require the courts to determine whether domestic violence was present in the relationship before a super fund could make a decision about death benefit payments. Jasmine Opdam from the Redfern Legal Centre says involving the courts is unacceptable. Jasmine Opdam says involving the courts places the onus on families. (Supplied: Jasmine Opdam) "All you have to do is look at the attrition rates as cases go through the criminal justice system and see how few reports of family violence actually go to court, let alone result in convictions." She also said it placed all the onus on the family. "You're asking someone who has just lost a loved one … you're asking them to then also go and retain a lawyer and pay tens of thousands, maybe hundreds of thousands of dollars in legal fees to go through expensive and time-consuming court proceedings, which might actually eat up most of the value of the superannuation anyway," Ms Opdam said. Consumers are being urged to make 'binding' death benefit nominations to avoid lengthy legal disputes between family members and loved ones. Redfern Legal Centre made a joint submission to the federal government, alongside industry stakeholders including Super Consumers Australia. They are recommending legislation that requires all super funds to consider domestic and family violence when deciding death benefit claims, and ensuring funds have the power to set aside eligible beneficiaries if there is persuasive evidence of violence. Involving the courts could make processes worse for everyone involved, according to the director of advocacy from Super Consumer Australia Lily Jiang. Lily Jiang says super funds need to have tools in place to support members who are experiencing domestic and family violence. (Supplied: Lily Jiang) "It would mean taking years and years

Mary died after suffering domestic violence. Her abuser might financially benefit

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Mary died after suffering domestic violence. Her abuser might financially benefit

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