The Super Members Council welcomes today's election commitment by the Labor Party to reform super's death benefit laws so family violence perpetrators do not profit from their abuse.
SMC encourages all parties and independents to match the commitment and close this legal loophole in the next Parliament.
Under existing laws, an abuser can receive a victim's superannuation death benefit unless they are the direct cause of that person's death. This currently applies even if the perpetrator has been convicted of family violence offences, or in cases when there was systemic abuse which indirectly contributed to the cause of the victim's death.
SMC advocated strongly for this reform in its submission and joint testimony - alongside Women in Super and ASFA - to the Parliamentary Joint Committee in Relation to Financial Abuse.
In its advocacy, SMC has proposed several potential avenues for reform including:
- expanding the Forfeiture Rule to family violence-related crimes, which prevents murderers from inheriting their victim's super; and
- investigating legislative reforms that would allow super funds to withhold death benefits in substantiated cases of family violence. Clear and robust evidence standards, judged by an independent body such as a court, would ensure procedural fairness and due process.
SMC acknowledges the work of Committee members – led by Chair Senator Deborah O'Neil and Deputy Chair Alex Hawke – for pursuing this much needed reform, as well as the collective advocacy across the super sector.
Closing this legal loophole was among SMC's 12 policy priorities that it asked all parties and independents to support at this election to strengthen and enhance super.
Super Members Council Deputy CEO, Georgia Brumby said:
"These reforms are about standing up for victims of family violence."
"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."
"Perpetrators should not profit from their crimes. Closing this legal loophole will protect victims of family violence and financial abuse."
"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."
