Nominating beneficiaries
Make sure your super goes where you
want it to
Your super doesn’t automatically form part of your Will or estate when you pass away.
Nominating a super beneficiary lets you have your say about who receives your death benefit once you’re gone.
How it works
Nominating a beneficiary means that you’re telling us who you’d like your super to go to when you pass away.
A beneficiary is a person you choose to receive all or part of your account balance when you pass away, including any insured death benefit if applicable. This payment is called your ‘death benefit’. If you don’t nominate anyone, we’ll decide who your money goes to.
Who can you nominate?
You can only nominate your dependants and/or your legal personal representative.
Dependants
For super purposes, your dependants include:
- your spouse (including a de facto partner where you live together)
- your children of any age (including step and adopted children)
- a person you have an interdependency relationship with
- any other person who, when you pass away, was wholly or partly financially dependent on you
You generally can’t nominate your parents, siblings, other relatives or friends as dependants unless they are either financially dependent on you or an interdependency relationship exists. You can’t nominate pets or charities as dependants.
For more information about dependants, have a look at our FAQs on this page.
Legal personal representative
Your legal personal representative is:
- the executor of your estate (if you have a Will)
- the administrator of your estate appointed by a court (if you don’t have a Will)
- the trustee of your estate if you are under a legal disability, or a person who holds an enduring power of attorney granted by you
If you nominate your legal personal representative to receive your death benefit, the benefit is paid to your estate and will be distributed according to your Will. If you don’t have a Will, the laws on dying without a Will apply.
Types of beneficiary nominations
There are a few ways to let us know who you’d like to receive your super when you pass away.
The table below compares the options so you can understand the differences.
| Option | Best for | What it means |
| Non-lapsing binding nomination | Members who want the most certainty | We must follow your valid nomination, and it does not expire unless you cancel or update it. |
| Lapsing binding nomination | Members who want certainty for a set period | We must follow your valid nomination, but it expires after three years. |
| Non-binding nomination | Members who want to tell us their wishes, but leaves the final decision to us | We consider your nomination but decide who receives your benefit in line with super laws and the Trust deed. |
| Reversionary beneficiary | Members with a retirement income account who want their spouse to continue to receive regular income payments |
If your nomination is valid when you pass away, your account will transfer to your spouse. Your spouse will be able to make changes to the account once it transfers to them, such as change how the account is invested or alter income payments. They will also be eligible to make lump sum withdrawals as required. See the important information about reversionary nominations in the FAQs. |
Check your beneficiaries
Life changes, and your beneficiary nominations might need to as well.
It’s important to regularly review your nomination and whenever your circumstances change. For example, if you get married or divorced, have a child, or lose a nominated beneficiary.
Regularly checking your nominations ensures your super remains aligned with your wishes and current situation.
You can easily check who you’ve nominated in Member Online or through our app to make sure they’re up to date.
How to make a nomination
Non-lapsing binding nomination
You can make a non-lapsing binding nomination by completing the Make a binding death benefit nomination form.
Make sure you sign it in front of two witnesses (they must be over 18 and not beneficiaries) who sign the form on the same day as you.
Download the binding nomination form
Lapsing binding nomination
You can make a lapsing binding nomination by completing the Make a binding death benefit nomination form. Make sure you sign it in front of two witnesses (they must be over 18 and not beneficiaries) who sign the form on the same day as you.
If your binding nomination is expiring and your beneficiaries haven’t changed, you can renew your binding nomination before it expires in Member Online or by completing the Renew your binding death benefit nomination form. We’ll contact you to let you know when your nomination is about to expire.
Non-binding nomination
You can make a non-binding nomination at any time:
- through Member Online - see our step-by-step guide
- by calling us on 1800 005 166
- by completing the Choose your non-binding beneficiaries form.
Reversionary beneficiary nomination
If you have a retirement income account, you can make a reversionary beneficiary nomination for your spouse at any time by completing the Reversionary beneficiary nomination form.
Keep in mind that adding, changing or removing a reversionary nomination can affect your Services Australia (Centrelink) benefits as it can change the amount that’s assessable for the income test. You’ll need to let Centrelink or the Department of Veterans’ Affairs know if you make any changes. We recommend you seek advice before making any changes.
You can’t make a reversionary nomination if you have a super account.
See the important information about reversionary beneficiary nominations in the FAQs.
Make sure your nomination is valid
See the FAQs below for information on what can make your nomination invalid.
If you don’t make a nomination
If you pass away without making a nomination, or your nomination isn’t valid or effective when you pass away, we’ll decide who receives your death benefit based on your circumstances, superannuation law and the Trust deed.
Read the following case studies to find out what could happen if you don’t make a nomination.
George thought his super would be included in his Will
George included instructions in his Will to leave his super to his two adult sons, with the rest of his estate to go to his de facto partner of fifteen years, Stewart.
He didn’t nominate any beneficiaries on his super account, as he thought that by including his super in his Will that his instructions would be carried out.
Instructions about super in a Will are not binding. The Trustee may use George’s Will as a guide, but it is ultimately the Trustee’s decision where George’s super goes, based on applicable laws.
As George was in a de facto relationship with Stewart at the time of his passing, Stewart qualifies as a dependant of George. His two adult sons on the other hand are not financial dependants as they did not rely on George for financial support at the time of his passing.
As the sole financial dependant, the full death benefit is paid to Stewart.
What could George have done differently?
George could have made a binding nomination to his legal personal representative.
As George had a valid Will, the benefit would have been paid to his estate and distributed according to his Will.
Tony passed away unexpectedly, leaving behind his children and partner
Tony has been in a de facto relationship with Katrina for five years. They have a 4-year-old daughter, Kate. Tony also has two children, Matthew (11) and Jack (9), with his ex-wife. They have been divorced for nearly seven years.
Tony passes away from a heart attack. He never got around to nominating beneficiaries to receive his super death benefits.
As Tony did not nominate any beneficiaries, it’s up to the Trustee to determine who should get his super benefit.
Because Katrina is in a de facto relationship with Tony, she is identified as a dependant and potential beneficiary. All of Tony’s children are also identified as dependants, including his two children from his previous relationship. This is because there is an expectation that Tony, as their father, would provide ongoing financial support.
It is determined that the death benefit should be distributed to Katrina and the three children, Kate, Matthew, and Jack. The exact percentages of how the benefit will be split could vary.
What could Tony have done differently?
By making a binding nomination for his super death benefits, Tony could have provided greater certainty for his partner and children, and potentially simplified the process of accessing the benefit.
How to change or cancel your nomination
If you’d like to update or cancel your nomination, it’s easy, just follow the steps below:
Non-lapsing binding nomination
You can update your nomination at any time by completing a new Make a binding death benefit nomination form. This includes changing an expiring lapsing binding nomination to a non-lapsing one.
If you’d like to cancel your nomination, simply complete the Cancel a binding death benefit nomination form.
Lapsing binding nomination
You can update your nomination at any time by completing a new Make a binding death benefit nomination form. This includes changing an expiring lapsing binding nomination to a non-lapsing one.
If you’d like to cancel your nomination, simply complete the Cancel a binding death benefit nomination form.
Non-binding nomination
Non-binding nominations can be made, updated or cancelled at any time:
- through Member Online
- by calling us on 1800 005 166
- by completing the Choose your non-binding beneficiaries form
Reversionary nomination
Things to consider
- if you cancel your nomination and don’t make a new one, we’ll decide who your super goes to
- lapsing binding nominations only last for three years
- non-lapsing binding nominations don’t expire, unless you cancel or update it
- non-binding nominations are not legally binding
- if you’re nominating your legal personal representative, make sure your Will is up-to-date
- tax may apply if your beneficiaries are not considered to be dependants for tax purposes. See the FAQs for more information.
If you’re a beneficiary
If you’re named as a beneficiary for a CareSuper member, you could be eligible to receive their super benefit.
To understand how it works and what to do next, see our Making a death benefit claim page.
FAQs
Understanding beneficiaries
What is a beneficiary?
Who is a financial dependant?
A financial dependant is someone who relies on you for ongoing financial support, such as help with rent, mortgage repayments or living expenses.
Some examples include:
- adult children who rely on a parent for essential financial support
- elderly parents who are supported by their adult child
- a person who can’t meet necessary living expenses without the deceased’s help
We may ask for evidence to support a dependency claim, such as bank statements or shared financial records.
What is an interdependency relationship?
You may be in an interdependency relationship if all of these apply:
- you live together
- you have a close personal relationship
- one or each of you provides the other with financial, domestic or personal support
You may also be in an interdependency relationship if you have a close personal relationship but don’t live together because either or both of you suffer from a physical, intellectual, or psychiatric disability.
Can I nominate more than one beneficiary?
Yes – you can add as many beneficiaries as you like, as long as the nomination adds up to 100%.
If you’re using a form to nominate a binding beneficiary and you need more space, use the Additional binding death benefit nomination form.
Can I nominate my siblings, parents, grandchildren or friends as super beneficiaries?
You generally can’t nominate your parents, siblings, other relatives or friends as dependants unless they are either financially dependent on you or an interdependency relationship exists. See the FAQs for more on what these terms mean.
We’ve provided more information on your options if you don’t have any dependants in the following FAQs.
What happens if I nominate my legal personal representative?
If you nominate your legal personal representative to receive your death benefit, the benefit is paid to your estate and will be distributed according to your Will. If you don’t have a Will, the laws on dying without a Will apply.
What happens if I don’t have any dependants?
We can generally only pay your death benefit to people who are alive and are your dependant(s) or legal personal representative when you pass away.
If you don’t have any dependants, or if you want your super to be paid to someone else, you may wish to nominate your legal personal representative. Your death benefit will be paid to your estate and be distributed in accordance with your Will.
If you don’t have any dependants or a legal personal representative, we may pay your benefit to a non-dependant, such as a parent, sibling, other relative or friend.
Choosing a nomination
What type of nomination should you make?
You can choose which type of nomination to make depending on your personal circumstances.
Binding and reversionary beneficiary nominations are legally binding if they’re valid when you pass away. They may result in your beneficiaries receiving your super quicker, as there are less time-consuming steps to work out who your super should go to.
Non-binding and binding nominations can be made for all CareSuper accounts you hold, including both accumulation and retirement accounts. You can choose for a nomination to only apply to one account or all accounts you hold.
If you want different nominations to apply to each account you hold, you’ll need to complete a separate nomination for each account.
Please note that if you’re under 18 years of age you can only make non-binding nominations.
Reversionary beneficiary nominations can be made on CareSuper Transition to Retirement, Retirement Income or Term Allocated Pension accounts. A separate nomination form must be completed for each account.
If a member has appointed you as their Power of attorney, or you are a member’s legally appointed administrator or guardian, there may be limitations on what you can do. Please see our Third party authorisation form or contact us for more information.
What’s the difference between a binding and a non-binding nomination?
A binding nomination provides more certainty. If it’s valid when you pass away, we must pay your death benefit to the people you’ve chosen, in the proportions you’ve set. A binding nomination may result in your beneficiaries receiving your super quicker, as there are less time-consuming steps to work out who your super should go to.
- A non-lapsing binding nomination does not expire unless you cancel or update it.
- A lapsing binding nomination expires after three years.
Alternatively, a non-binding nomination guides our decision but does not guarantee your wishes will be followed. We’ll consider your nomination, however we’ll decide who receives your benefit in line with super laws and the Trust deed.
Important information about reversionary nominations
If your reversionary nomination is valid and effective when you pass away, it will result in your account balance transferring to your spouse. This can impact your spouse’s transfer balance cap. For more information about the transfer balance cap, refer to the relevant PDS. Your spouse may wish to seek professional advice about their individual circumstances.
It’s important to note that in some circumstances, making, changing or removing a reversionary nomination may impact any Services Australia (Centrelink) benefits you may receive as it can change the amount that’s assessable for the income test. You must inform Centrelink or the Department of Veteran’s Affairs if you add, change or remove a reversionary beneficiary. We recommend you seek advice before making any changes.
Managing your nomination
What can make your nomination invalid
A binding nomination may be invalid at the time we receive it for a number of reasons, including:
- the form requirements were not satisfied (e.g. it wasn’t witnessed by two people who are over 18 years old who were not nominated as beneficiaries, or they didn’t sign and date the form on the same day that you signed it)
- the form contained amendments or corrections
A binding nomination may also become invalid if, at the time you pass away, any of your nominated beneficiaries are no longer your dependants or your legal personal representative. Some examples include:
- one or more of your beneficiaries have passed away
- your nominated spouse is no longer your spouse (including a de facto partner)
- a stepchild is no longer considered a stepchild
- a nominated beneficiary was not financially dependent on you or in an interdependency relationship with you when you passed away
- your legal personal representative has either passed away or ceased to be your legal personal representative
Non-lapsing binding nominations can also become invalid if you nominated one or more children and you have another child after making the nomination.
If your nominated reversionary beneficiary is no longer your spouse at the time of your passing, the benefit will be paid at the discretion of the trustee.
In some circumstances, for example a court order, we may not be able to pay a benefit in accordance with an otherwise valid and effective nomination.
Does my super form part of my Will?
Your super doesn’t automatically form part of your Will or estate when you pass away.
Nominating a super beneficiary lets you have your say about who receives your death benefit once you’re gone. You can only nominate your dependants and/or your legal personal representative.
If you want your super to be paid out in accordance with the instructions in your Will, you can make a binding nomination to your legal personal representative so they can distribute your super as instructed in your Will.
Tax and death benefits
Do beneficiaries pay tax on super inheritance?
The tax applied to your death benefit depends on who receives your benefit, and whether it’s paid as a lump sum or as an income stream.
No tax is payable on lump-sum death benefits paid to a person classed as a dependant for tax purposes, such as:
- your current or former spouse (including a de facto partner)
- your child under age 18
- any person who was financially dependent upon you at the time of your death or
- any person in an interdependency relationship with you.
Children 18 years and over must be financially dependent on you when you pass away to be considered a dependant for tax purposes. Adult children who aren’t financially dependent on you can still receive your super death benefits. However, they’ll be assessed as non-dependants for tax purposes. The amount of tax paid by non-dependants will depend on the tax components of the account.
It’s important to get tax advice from a professional. Find out more in the relevant PDS or visit the ATO website for more information.
Case studies
It’s important to have valid nominations in place so we know who should get your super. Here are some examples showing potential outcomes based on the way people nominate their beneficiaries.
Non-binding nomination to husband
Sarah, 56 years old
Sarah wants her husband to use her super to pay off their mortgage if she passes away unexpectedly.
Sarah has been married to 60-year-old Tom for 35 years. Sarah and Tom have three adult children who no longer live at home. They also have three grandchildren aged between five and ten. All three of Sarah’s children are low-income earners, so Sarah helps out by paying for all three of her grandkids’ school fees.
Sarah and Tom have a mortgage of around $200,000. Sarah believes that leaving her super to Tom when she dies would allow him to pay off the mortgage and retire from full-time work. So, Sarah makes a non-binding nomination to Tom.
Sarah passes away suddenly with a super balance of $225,000.
Sarah made a non-binding nomination to Tom. While her wishes will be considered, it is ultimately up to the Trustee (the legal entity responsible for managing the CareSuper fund) to consider all dependants when deciding who gets her death benefit.
By law, spouses are considered financial dependants. During the Trustee’s assessment of the beneficiary claim, Tom is identified as a potential beneficiary.
However, because Sarah provided ongoing financial support to her three adult children, they could also be considered financial dependants. This means they are potential beneficiaries to her death benefit as well.
The Trustee determines that Sarah’s three adult children will receive part of Sarah’s death benefit, with the balance going to Tom.
If Sarah had made a valid binding nomination to Tom, then the Trustee could have paid the entire death benefit to Tom, allowing him to pay off the mortgage and retire.
Binding nomination to daughter
Charlotte, 75 years old
Charlotte, a mother to two adult children, passes away after making a binding nomination to one of her children.
After losing her husband five years ago, Charlotte made a binding nomination to her daughter, Amy (50). Charlotte also has a son, Jeremy (48), but she doesn’t see a lot of him.
After suffering a stroke, Charlotte moves into a nursing home. She passes away ten months later.
Jeremy learns that Charlotte had left her super to Amy, but he believes he has a claim. However, because there was a valid binding nomination to Amy in place, it is determined that the full death benefit should be paid to Amy.
Binding nomination to two daughters
Jacquie, 53 years old
Jacquie, a recently widowed mother, wants to leave her super to her two adult daughters.
To make sure her daughters get her death benefit when she dies, Jacquie makes a binding nomination and names both Danielle and Trina as beneficiaries. One year later, Danielle tragically passes away in a car accident. A few months after that, Jacquie suffers a stroke and also passes away. Trina expects that she will automatically receive her mother’s super benefit as she is the only daughter still alive.
Although Trina was listed as a beneficiary on Jacquie’s binding nomination, this nomination became invalid when Danielle passed away.
The Trustee will now assess the claim as if no nomination existed and will determine potential beneficiaries in line with applicable laws.
Non-binding nomination to sons
Jenny, 63 years old
Jenny wants her two sons to inherit her super if she passes away unexpectedly.
Jenny, a mother to two adult sons, had recently separated from her husband when she passed away unexpectedly at age 63. She had a significant amount of super and had made a non-binding nomination to leave her super to her sons. After Jenny’s death, her estranged husband claimed he was still financially dependent on her and entitled to Jenny’s super.
Jenny had made a non-binding nomination to her sons. While her wishes will be considered, it is ultimately up to the Trustee (the legal entity responsible for managing the CareSuper fund) to consider all dependants when deciding who gets her death benefit.
By law, spouses are considered financial dependants. During the Trustee’s assessment of the beneficiary claim, they identified her husband as a potential beneficiary. The Trustee was unsure of her current relationship status and decided to allocate her super to her husband rather than her children, which led to a long, costly legal battle for Jenny’s sons.
If Jenny had made a valid binding nomination to her sons, this outcome could have been avoided and the Trustee could have paid her super to her sons, as per her wishes.
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