Superannuation industry wants ‘urgent legal reform’ to stop abusers getting victims’ super

THREE of the superannuation sector’s major representative bodies are appealing to the Federal Government to “swiftly reform the law” to stop perpetrators of family violence being able to claim their victim’s super.

The Super Members Council, the Association of Superannuation Funds of Australia and Women in Super have written to Assistant Treasurer Stephen Jones and other key Ministers asking them to reform super’s death benefit laws so a family violence perpetrator does not profit from their abuse. 

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.  

In a joint letter to the key Ministers, the superannuation peak bodies have proposed potential avenues of reform to the Assistant Treasurer and other key portfolio Ministers.

These reforms include expanding the Forfeiture Rule to family violence-related crimes. This law prevents murderers from inheriting their victim’s super.

The superannuation bodies also seek 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.

Super Members Council CEO Misha Schubert said, “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.”

Association of Superannuation Funds of Australia (ASFA) CEO Mary Delahunty said, “Our sector is unified in the belief that victims of family violence should not be further victimised through the misuse of the superannuation system. 

“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.

“These reforms are about standing up for victims of family violence. 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,” Ms Delahunty said.

Women in Super CEO Jo Kowalczyk said, “The proposed reforms are not just about preventing financial gain for perpetrators; they are about sending a clear message that Australia will not tolerate abuse in any form.

“This is an opportunity for us as advocates and policy makers to work together to ensure super is not being used as a mechanism for financial abuse.” 

www.smcaustralia.com

www.superannuation.asn.au

www.womeninsuper.com.au

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