9 August, 2024
Three leading superannuation bodies — the Super Members Council, the Association of Superannuation Funds of Australia (ASFA), and Women in Super — united to call on the Australian Government for immediate legal reforms to protect victims of family violence. These changes are essential to stop perpetrators of domestic abuse from exploiting their victims’ superannuation benefits.
Under the current legal framework, a perpetrator can still claim a victim’s superannuation death benefit unless they are directly responsible for the victim’s death. This loophole persists even if the abuser has been convicted of family violence offenses or engaged in systemic abuse that indirectly contributed to the victim’s death.
In response to this crucial media release, Websters Lawyers’ Senior Associate Andrew Carpenter emphasises the importance of closing this legal loophole:
“It’s alarming that our laws currently allow abusers to financially benefit from their victims’ tragedies. This not only continues the cycle of abuse but also sends a dangerous message that our legal system tolerates such exploitation. Reform is urgently needed to protect those who have already suffered at the hands of family violence.”
The superannuation peak bodies have proposed the following key reforms:
- Expanding the Forfeiture Rule: This rule, which prevents murderers from inheriting their victim’s super, should be extended to cover family violence-related crimes.
- Investigating Legislative Reforms: Super funds should be empowered to withhold death benefits in substantiated cases of family violence, ensuring robust evidence standards are maintained through independent court judgments.
ASFA CEO Mary Delahunty highlights the necessity of these changes:
“Our sector is unified in the belief that victims of family violence should not be further victimised through the misuse of the superannuation system. These reforms are a critical step towards ensuring that superannuation is protected and not used as a financial reward for perpetrators.”
Women in Super CEO Jo Kowalczyk echoes this sentiment:
“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.”
Andrew Carpenter stands firmly in support of these proposed reforms, and believes that legal measures must be in place to ensure that perpetrators cannot continue to inflict harm through financial means. He urges everyone to join the call for urgent reform, so that by closing this loophole, the financial futures of those who have already endured so much can be protected.