Why you need to nominate a beneficiary

Nominating a beneficiary helps your super or pension benefits go to people important to you.

What benefits they receive in the event of your death depends on the type of super or pension account you had, including things like your account balance and relevant insurance benefits.

How to nominate a beneficiary

Step 1: Choose a beneficiary

Super benefits are paid as a lump sum to one or more people who are eligible to receive them. Your nomination must include any of the following:

  • your spouse (of the same sex or different sex, by marriage or de facto)
  • your children (biological, adopted and ex-nuptial, including your partner's children)
  • someone who’s financially dependent on you
  • someone you’re in an interdependent relationship with
  • your legal personal representative (that includes the executor of your Will, or the administrator of your estate).

Learn more about who you can nominate as a beneficiary


Step 2: Make a beneficiary nomination

There are two different types of binding nominations: lapsing and non-lapsing.

Unlike non-binding nominations, we're legally bound to pay your benefit as you have instructed, unless it is not valid at the time.

Switching from a non-binding to a binding nomination provides greater certainty.

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Non-lapsing binding nomination

Non-lapsing nominations are valid until you change or revoke them, or something invalidates your nomination.

You can now make a non-lapsing nomination online.

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Lapsing binding nomination

Lapsing nominations expire after three years. If your nomination isn’t renewed before it expires, it becomes a non-binding nomination.

Lapsing binding nominations must be submitted using a paper form.



Step 3: Keep your nominations up to date

As things change over time, so might the people you’d prefer get your super benefits. Remember to regularly review your nominations, especially after major life events like marriage, divorce, the birth of a child, or the death of a nominated beneficiary. 

Changes in your personal circumstances can invalidate your binding nomination. For example, if you divorce your spouse or if a nominated beneficiary passes away before you, your nomination will no longer be binding. In such cases, we will determine who receives your benefit. You can check your current nomination on your online account.

Pension beneficiary nominations

The type of pension you have can determine how you choose a beneficiary, so nominating someone involves first learning how beneficiary rules apply to you.

  • Flexi Pension beneficiaries

  • Defined Benefit Indexed Pension

  • Joint Life Lifetime Income account

  • Single Life Lifetime Income account

  • Term Allocated Pension

Case studies

The case studies show the importance of having the right type of nomination depending on how you want your super benefits to be paid.

Rachel nominates her elderly parent

Rachel has no children with her de facto partner, Ethan. Having already nominated Ethan in her Will, she decides to make a binding nomination, so her super benefit is paid to her aging mother, Teresa as a financial dependent.


After Rachel passes away


Because Rachel didn’t support her financially, Teresa doesn’t meet the definition of a dependent under superannuation law. Although the nomination was binding, her mother is an invalid nomination, so we instead pay the super benefit to Ethan.

John nominates his wife and daughter

After John and Sarah celebrate the birth of Frankie, John decides to update his beneficiaries. He makes a non-binding nomination, leaving half of his super to Sarah and the other half to Frankie.


After John passes away


After considering John’s request, we learn that Frankie is still an infant. His non-binding nomination means we must decide on how best to pay the super benefit. We may decide to pay the whole benefit to Sarah, his wife instead as she is Frankie’s guardian.

Mina nominates selected family members

Mina is divorced with three children. She plans to leave her successful business to her eldest daughter, her home and super to her other daughter, and leaves nothing to her son as they no longer speak. To formalise this plan, she makes a non-binding nomination with her second daughter as the sole beneficiary.


After Mina passes away


After considering Mina’s request, we find three potential beneficiaries. Without a valid binding nomination in place, we must decide on how to best pay the super benefit. In this case, we may decide to pay each child equally, even though Mina was estranged from her son.

Emily nominates her three children

Emily has recently remarried and now lives with her new husband. Her non-binding nomination requests that her benefit is equally shared among the three adult children from her first marriage.


After Emily passes away


As Emily didn’t make a valid binding nomination, we must decide on how best to pay the super benefit. If none of her adult children were considered to be financially dependent on Emily, we could pay the full benefit to the surviving spouse, Ricardo. However, there may be circumstances where we may also consider a payment to the children, based on the information received from each individual.

How we decide who to pay

If you have a binding nomination in place when you pass away, we’ll validate that each person still qualifies as a beneficiary under superannuation law, and then simply make the payment in line with your nomination.

However, if you do not have a valid binding nomination in place, we will need to decide who to pay. Before this, we‘ll identify all of your potential beneficiaries and consider your preferences based on any prior nominations on record. In some circumstances, we may also need to notify all of your potential beneficiaries of our decision and give them an opportunity to object (referred to as claim staking).

This process may result in the super benefit not being paid until any objections are resolved, therefore, the fastest way to ensure your loved ones are paid as quickly and efficiently as possible, is to make a binding nomination and keep it up to date.

It's important to note that a binding nomination may be valid when you first complete it, however, if your personal circumstances change, then this might result in the existing nomination becoming invalid i.e. if you nominate your spouse and then later divorce.

Get expert advice on beneficiary nominations

If you’d like support with a nomination, our super consultants can provide more information on basics like:

  • how beneficiaries work
  • who you can nominate
  • when you might change your nomination
  • tax, Centrelink or Department of Veterans’ Affairs income implications.

 

Who you can nominate as a beneficiary

If you’re nominating multiple beneficiaries, ensure you allocate 100% of your benefit across your nominations. For example, you may nominate your spouse to receive 34% of your benefit and have your two children receive 33% each.

  • Your spouse

  • Interdependent relationships

  • Children

  • Legal representatives

FAQs

  • What happens if I don’t nominate a beneficiary?

  • How can I change or cancel my nomination?

  • Can I nominate a charity or non-dependant as a beneficiary?

  • When is my binding nomination considered invalid?

  • The role of the trustee

  • How are super benefits taxed?

  • What if my nominated beneficiary dies before me?

Need help with a beneficiary nomination?

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Call

1800 331 685
8.30am to 6.00pm (Melbourne time)
Monday to Friday

+61 3 8831 7901 from outside Australia

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Email

Ask any questions or give feedback by sending us an email.

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Get financial advice

Chatting to one of our super consultants can help you better understand how insurance transfers apply to you.

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