Protect your loved ones with a binding beneficiary nomination

12 March 2025

You are growing your superannuation throughout your working life to achieve a comfortable retirement. But what happens to your super in the event of your death?

Your super does not automatically form part of your estate, even if your wishes are included in your Will. However, you can arrange for your family and loved ones to receive your super after you have gone by making a binding beneficiary nomination.

A binding beneficiary nomination gives you peace of mind, knowing that your super can help your family in the future.

Arranging who receives your super

In the event of your death, your beneficiaries will receive the amount of money in your super account plus any insurance benefit that is payable. This is called a superannuation death benefit.

You can arrange who will receive your superannuation death benefit by making a Binding Death Benefit Nomination – this is a legal document that binds Brighter Super to pay your death benefit to whoever you have nominated – if they are eligible to receive your benefit at the time of your death (see further below).

Making a valid binding nomination puts you in control, making it quicker and easier for your loved ones to receive their money after you’ve gone.

A binding beneficiary nomination can be particularly useful if you have a complex family situation, such as an ex-partner or children of a current and former relationship.

How to make a Binding Beneficiary Nomination

The quickest and easiest way to make a binding beneficiary nomination is online.

• Log into your account in Member Online. If you haven’t used Member Online, you can register for access in a few minutes.
• On the left-hand navigation, click on ‘Beneficiaries’ and you’ll be taken to a page explaining your next steps.

Binding beneficiary nominations that are made online are non-lapsing, which means they don’t expire until you make a change. Online nominations do not require witnesses.   However, changes in your circumstances may affect the validity of your nomination, such as a new de-facto relationship or marriage breakdown. We recommend that you regularly review your death benefit nominations.

An alternative way to make a binding beneficiary nomination is to download and submit our printed PDF form. The Binding Death Benefit Nomination Form M10 is available at brightersuper.com.au/forms under ‘superannuation’ and ‘retirement’.

Unlike an online nomination, completing the printed form requires two witness to sign and date.

Another benefit of submitting your nomination online is that it is processed immediately, whereas a printed PDF form generally takes an average of three business days.

Valid beneficiaries

Brighter Super can only pay a death benefit to a valid beneficiary (as required by law), which can be one or more of the following:

1. Your dependants, which are defined as:
• a spouse – married or de facto.
• any child – including stepchildren, adopted children, ex-nuptial children, or anyone who fits the definition of a child under the Family Law Act 1975.
• any person in an interdependent relationship with you – defined as someone you have a close personal relationship with, you live together, and one or each of you provides the other with financial and domestic support and personal care.
• any person who was wholly or partially financially dependent on you at the time of your death.
2. Your legal personal representative, which for example, is an executor of your Will or administrator of your estate. This can help if you want to leave your super to someone who is not a dependant. You can then outline who you would like it distributed to in your Will.

Full details about the eligibility of dependants and interdependent relationships are available in our death benefit info sheet.

View your current beneficiaries

After you have nominated your beneficiaries, you can view these details at any time by logging into your account in Member Online.

Your beneficiaries are also listed in your Annual Statement.

What happens if you don’t have any beneficiaries?

If you die without making a binding beneficiary nomination, or your beneficiary nomination is invalid, Brighter Super will pay your death benefit in line with the rules set out in our Trust Deed and superannuation legislation.

This means we are required by law to determine how to distribute your money. Where there is no valid nomination, the benefit will be paid as follows:

• To a qualifying spouse or one or more qualifying spouses, where more than one person meets the relevant definition of qualifying spouse).
• If there is no qualifying spouse, then one or more qualifying children – this includes children under 18, as well as children over 18 with a financial dependency on the member, or in an interdependency relationship with the member, or with a prescribed disability.
• If there are no qualifying children, to the legal personal representative – this could be an executor of the member’s Will or a person who has letters of administration of the member’s estate.
• If no legal personal representative is identified, or the estate is insolvent, then to other dependants.

If you have a complex family situation, the outcome could be different to what you had in mind.

Changing or cancelling your nomination

Your circumstances may change, and you may need to update your beneficiaries. For example, you may have a new son or daughter, or one of your beneficiaries is no longer a dependant.

You can change or cancel your nomination at any time. As with nominations, the quickest and easiest way to make a change us to log into your account in Member Online.

Alternatively, you can download and complete the printed PDF form, although this will require witnesses to sign and date. The Binding Death Benefit Nomination Form M10 is available at brightersuper.com.au/forms.

We do not charge a fee when you make or change a Death Benefit Nomination.

Tax implications

Death benefits paid as a lump sum are tax-free if paid to an eligible dependant as defined by the Australian Taxation Office.

If a death benefit is paid to someone not considered a tax dependant, including an adult child who is not financially dependent on you, the benefit’s taxable portion is taxed at 17% (including Medicare levy). The untaxed component is taxed at 32% (including Medicare levy). The taxed and untaxed components are calculated at the time of payment.

Further information on taxation is on our death benefit info sheet.

Further information

Further information is available in these documents:

• Guide to Claiming a Death Benefit – available at brightersuper.com/forms
• Member Guide – available at brightersuper.com/pds (listed under Brighter Super Accumulation)

We recommend you seek professional advice before making any arrangements regarding the treatment of your estate. There may also be social security or tax implications for your potential beneficiaries.

Brighter Super’s team of superannuation specialists are here to help you. If you have any questions about beneficiary nominations, please contact us on 1800 444 396.