This push for reform arises as the Australian Securities and Investments Commission (ASIC) has voiced significant concerns and initiated legal proceedings against high-profile funds like AustralianSuper for their handling of death benefits. The SMC’s submission to the Treasury highlights the urgency of legislative changes, particularly emphasizing the importance of binding death nominations in expediting fund payments.
Currently, legal frameworks necessitate physical forms with wet ink signatures for these nominations, contributing to delays. The SMC proposes an update to the SIS Act to allow for digital processing, which they argue would significantly reduce payment times and simplify the claims process.
Beyond digitisation, the SMC’s submission also advocates for the acknowledgment of First Nations kinship relationships in superannuation law and the adoption of a national digital verification system. Additionally, they call for the harmonisation of cause of death information across different jurisdictions to enhance efficiency and transparency.
The SMC has praised recent efforts by the Treasury to develop mandatory service standards within superannuation and urges these advancements to be prioritised. These efforts align with broader initiatives by profit-to-member super funds that have invested extensively in service improvements, resulting in a notable reduction in complaints as per preliminary data from the Australian Financial Complaints Authority (AFCA) for 2024/25.
The SMC envisions that mandatory service standards will further enhance member service quality, streamline processes, and bolster public trust in the superannuation system by establishing a unified framework adaptable to various fund memberships and operations. They express readiness to assist the Treasury in implementing these measures promptly to build on recent progress in member services.
