What is a beneficiary?

A beneficiary is the person (or people) who may receive your super if you die. This includes any life insurance held through your super. Superannuation law requires that anyone you nominate be an eligible person — and without a valid binding nomination, your super fund’s trustee decides who receives your money. 

Who can you nominate?

If you’re making a binding nomination, you can only nominate people the law allows, including: 

• Your spouse (including de facto or same-sex partners) 
• Your children (including stepchildren, adopted or adult children) 
• A financial dependant (someone who relies on you for financial support) 
• Someone in an interdependency relationship (where you live together and provide emotional and/or financial support) 
• Your legal personal representative (the executor of your estate) 

These rules ensure your nomination is legally enforceable and must be followed by the trustee if valid at the time of your death. 

Example: Sam, 35, lives with and supports his elderly aunt, who doesn’t have an income. He can nominate her as a beneficiary because she’s financially dependent on him. 

Example: Jess, 28, has a toddler and lives with her partner. She can nominate both her child and partner as beneficiaries. 

If you’re making a non-binding nomination, you can nominate anyone, even if they don’t fall into the categories listed above. The trustee will consider your nomination, but ultimately decides based on your relationships and dependants at the time of your passing. 

How do you nominate someone?

You have two main options: 

1. Binding nomination

A binding nomination is a formal instruction to your super fund — if valid at the time of your death, it must be followed. You can make it lapsing (expires every 3 years unless renewed) or non-lapsing (stays in place unless revoked). 

Example: Ravi, 45, wants certainty that his super will go to his children equally. He makes a binding nomination and renews it every 3 years. 

2. Non-binding nomination

This is more flexible but less certain. The trustee considers your nomination, but they still make the final decision based on your relationships and dependants at the time of death. 

Example: Mia, 32, doesn’t have a spouse or any children and wants to nominate her parents.  She can make a non-binding nomination to make her wishes known. 

Keep it up-to-date

Your life changes — so should your nomination. Marriage, divorce, kids, or losing a loved one can all affect who you’d want to receive your super. 

Example: Alex separated from his partner and is in the process of getting a divorce, but has not updated his nomination. If he passes, the trustee may pay the benefit to his partner because the nomination was still valid. 

You can review or update your non-binding beneficiary nomination via your CareSuper account at any time. Binding nominations must be printed out, signed, dated and witnessed by two people who aren’t beneficiaries and are 18 years or older. 

Unsure whether the person/people you’d like to nominate are eligible? That’s okay, it can be a tricky one to figure out. CareSuper’s support team can help. Give us a call on 1800 005 166. 

  
^{CareSuper Pty Ltd (Trustee) (ABN 14 008 650 628, AFSL 238718). CareSuper (Fund) (ABN 74 559 365 913). Any advice is provided by CareSuper Advice Pty Ltd (ABN 78 102 167 877, AFSL 284443). Consider the PDS and TMD at caresuper.com.au/pds. A copy of the Financial services guide for CareSuper is available at caresuper.com.au/fsg.}