Why nominate a beneficiary
When you die, your super isn't automatically part of your estate. Even if you have a will, your super may not be included. This is because super is technically held in a trust until you’re eligible to access it. Nominating a beneficiary may help to make sure your super goes to the people you choose and may help to avoid disputes about your wishes. If you don’t nominate a beneficiary, your super fund will follow the relevant laws to determine who receives your balance.
Who you can nominate
Dependants include:
- your spouse or de facto partner
- your children and adopted children. You should seek legal advice to confirm if stepchildren can be nominated as a dependent
- a person who lives with you in a close relationship and depends on you financially (interdependent).
You can’t nominate a friend or other relative directly as a beneficiary as per Australian law. However, you can arrange for your super to be paid to your legal personal representative, who will use your will to determine who receives your super.
You can find out more about dependants on the Australian Taxation Office (ATO) website.
Types of nomination
You can nominate a beneficiary as either a:
- binding nomination, or
- non-binding nomination, or
- reversionary nomination (available to members with a Choice Income or TTR Income account).
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Binding nomination(s)
A binding nomination instructs AustralianSuper how to pay your death benefit if you die. A binding nomination comes into effect from the date we accept it.
You have 2 options for binding nominations
- Lapsing binding nomination – This nomination will expire three years from the date you sign the form. The expiry date will be shown on your annual statement and in your online account. You'll be sent a reminder prior to the expiry date.
- Non-lapsing binding nomination – This nomination does not have an expiration date and will only be changed or cancelled if you make changes to the nomination. Any changes will require you to complete a new nomination form.
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Non-binding nomination(s)
You nominate who you’d prefer your account to be paid. However, your nomination isn’t legally binding and although we’ll consider who you choose, ultimately, we are legally responsible and will need to consider relevant laws when making a decision.
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Reversionary nomination
If you nominate a reversionary beneficiary, this person will receive regular income payments from your account until the balance reaches $0.
You can nominate any one of the people listed under the Who you can nominate section above, except your legal personal representative1.
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Nominating children
You can nominate a child over 18 years old as a reversionary beneficiary if they are:
- permanently disabled, or
- younger than 25 and financially dependent (as defined by Superannuation law) on you immediately before your death
Dependent children under 25 will receive your super as regular income payments until they turn 25 (or your account balance runs out). After that, we’ll pay them your remaining super as a lump sum.
If your child is permanently disabled, we’ll pay them your super as regular income payments until the money runs out, regardless of their age.
Please note that we can’t make death benefit payments directly to children under the age of 18. In these cases, the payment will generally be made to a minor trust.
Minor trust
A minor trust is an account that holds the super balance (and insurance benefit payment if applicable) until they turn a specific age. The account is managed by a trustee who is responsible for the administration of the account in line with the rules of the Trust Deed. AustralianSuper trusts end when the beneficiary turns 18.
The trustee needs to open a trust account at their chosen financial institution (for example a bank), for the proceeds of the super balance (and insurance benefit if applicable) to be paid into.
Reviewing or changing your beneficiary nomination(s)
It’s easy to review and/or change your beneficiary nomination(s).
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Binding nominations
Log in to your account online to review your binding nomination(s). If you want to make, change or cancel your nomination(s), you’ll need to complete a Binding death benefit nomination form. There are different forms for super and retirement accounts.
Download the:
- Binding death benefit nomination (for super accounts) form or
- Binding death benefit nomination (for retirement income accounts) form.
For reversionary nominations, use the Making, changing or cancelling a reversionary nomination (pension members) form.
Tips for completing your binding nomination form
- Print out your form. Your form is only valid if you’ve physically signed it.
- Sign and date your form in front of two witnesses. Your witnesses must be 18 years or older and can't be one of the beneficiaries you're nominating.
- Make sure your witnesses sign and date the form on the same day as you. The date next to your signature must match the date next to your signature, or the form won’t be valid.
- Scan and upload a copy of the completed form.
Important: In Step 5, your total percentage of benefit (%) on your nomination(s) must equal 100%. Please double-check to avoid delays processing your application.
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Non-binding nomination(s)
You can review, make, change or cancel non-binding nomination(s) in your account online or through our mobile app.
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Reversionary nomination
You can set up or change your reversionary nomination by completing a valid Reversionary benefit nomination form2.
Things to consider
- A good time to check your nomination is after a big life event, such as:
- marriage,
- having children or grandchildren,
- divorce, or
- illness.
- Ensure your will is up to date.
- Inform your beneficiaries that you’ve nominated them and share your fund details with them.
- Understand the rules around different types of nominations to ensure your super goes to the right person.
- The way your super is paid out after your death can depend on the type of super fund.
- It may be wise to seek assistance from a financial adviser for more information3.
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Important information
- If your children are over 18, they must be permanently disabled or under 25 and financially dependent on you for a reversionary nomination to be valid.
- Making or changing a reversionary nomination could impact your Centrelink benefits. The Department of Social Services has more information about specific provisions for assessing income streams and account-based income streams – where reversionary beneficiary exists. It may be wise to seek financial advice before changing or making a reversionary nomination.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.