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Nominate who will receive your super

It’s important to consider who you want your retirement savings to go to if you pass away.

Super is not automatically covered in your will

If you want your super and insurance benefits to be distributed the way you want, you need to let your super fund know. This process is called nominating a beneficiary.

This video explains how it works.

Types of nominations

There are four options of nominating your beneficiaries.

  • Non-binding
  • Lapsing binding
  • Non-lapsing binding
  • Reversionary (TTR and Retirement Income accounts only)

Your options for beneficiary nominations

Non-Binding Lapsing Binding

A preferred recipient for your super or retirement income account, and any life insurance payable, when you pass away.

This is a legally binding request your super fund must follow, provided it is valid.

The nominated person/s receive any remaining super or retirement income, and any life insurance payable, when you die. Find out more in this video.
Non-Lapsing Binding Reversionary

This has one important difference to a Lapsing Binding nomination.

A valid Non-Lapsing Binding request won’t expire unless you amend or cancel it.

The nominated person will receive your ongoing retirement income payments when you die.

Pros and cons

Non-Binding Lapsing Binding
  • easy to change
  • doesn’t expire
  • may forget to update if you change your mind about your beneficiary
  • acts as a guide for your super fund, but it can be broken if it doesn’t meet super/tax laws or is contested by family
  • provides certainty so you know who will get your super
  • easy to set up – just fill out our form and have it signed by two witnesses
  • expires every three years
  • we’ll remind you to update it
Non-Lapsing Binding Reversionary
  • permanent (unless you change it), so you only have to set it up once
  • it doesn’t expire, so if your circumstances change and you don’t update us, your super may not go to your preferred beneficiary
  • it’s convenient and easy to make your nomination online
  • regular payments after you die, reducing admin for your beneficiary during a stressful time
  • flexibility to change the way your beneficiary receives payments
  • you can only nominate one person
  • it doesn’t expire, so if your circumstances change and you don’t update us, your super may not go to your preferred beneficiary
  • it could impact your beneficiary’s Centrelink entitlements
  • tax benefits, depending on the age and financial position of your beneficiary

Who can you nominate?

Non-Binding Lapsing Binding
  • spouse/partner
  • dependants (see definitions below)
  • your Legal Personal Representative (more details below)
  • spouse/partner
  • dependants (see definitions below)
  • your Legal Personal Representative (more details below)
Type of payment
Lump sum Lump sum
How do I make a nomination?
Update nominations in firstonline
OR
Nomination of beneficiary form		 Nomination of beneficiary form
+ two witnesses must sign the form
Non-Lapsing Binding Reversionary
  • spouse/partner
  • dependants (see definitions below)
  • your Legal Personal Representative (more details below)
  • a spouse or partner
  • a child who is:
    – under 18, or
    – an ‘adult child’ who is disabled or financially dependent under the age of 25.
Type of payment
Lump sum Regular income payments or lump sum
How do I make a nomination?
Update nominations in firstonline
OR
Nomination of beneficiary form + two witnesses must sign the form		 TTR and Retirement Income account Nomination of Beneficiary form

Who can be nominated as a beneficiary for super?

You can nominate dependants to receive your super and insurance payments if you die. The four types of eligible dependants are explained below.

You can select one person, or several people who meet these definitions, and assign a percentage of the payment you want them to receive.

  • Spouse / Partner
    • includes married and de facto (same or different sex) relationships
  • Children
    • your Children of any age (including step, adopted, ex-nuptial or children of your spouse)
  • Interdependent
    • someone who lives with you on a long-term or permanent basis, where one or both of you provide financial and domestic support, and personal care of the other
  • Financial Dependant
    • someone who relies on you (totally or partially) for financial assistance or support. For example, you pay the bills, rent, etc.

What if I want my super to go to someone else?

If the person you want to receive your super can’t be nominated as a beneficiary, don’t worry.

While super doesn’t automatically become part of your estate, you can nominate your Legal Personal Representative to receive your death benefit and distribute it.

This is the executor of your Will, or the person responsible for administering your estate if you do not have a Will. This gives you more options for who gets your super.

How to include super in your will

If you want your super to be distributed as part of your will, then it’s important to make a Binding Nomination to your Legal Personal Representative.

On the form, you would put Legal Personal Representative as the beneficiary.

Make sure you review your Binding Nomination regularly

If you have made a binding beneficiary nomination, it’s important to review this when your circumstances change.

Some common scenarios where your beneficiary nomination may need to be reviewed and changed include:

  • if you separate from your partner
  • if you remarry
  • the birth or death of a child
  • if there are changes to those who are financially dependent on you
  • if there are changes to people with whom you have an interdependent relationship, for example you start caring for someone with a physical or intellectual disability
Special rules for making a Lapsing Binding Nomination
  • a Nomination of Beneficiary form must be signed by two witnesses who are at least 18 years old and are not named as beneficiaries
  • the form is invalid if not received by First Super before your death
  • your Binding Nomination will cease to have effect if you subsequently marry, remarry or divorce. You can amend or revoke a Lapsing Binding Nomination at any time by sending us a new Beneficiary Nomination form
  • if a person you have nominated dies before you or is not eligible to receive a share of your Death benefit, that person’s part will be distributed equally among the surviving nominated dependants and/or Legal Personal Representative
  • if you do not provide all details requested in this form or if it is not properly witnessed, then First Super considers it a Non-Binding Nomination. We will contact you to advise you of this
  • if you fail to properly and clearly specify the percentage (%) of your benefit payable to each person, we will send the form back to you to complete correctly so that the percentages add up to 100%
Special rules for making a Non-Lapsing Binding Nomination
  • the easiest way to make your Non-Lapsing Binding Nomination is through firstonline. If you have not registered for firstonline, you must do this first.
  • you can also make your Non-Lapsing Binding Nomination by filling out the Nomination of Beneficiary form.
  • your Non-Lapsing Binding Nomination will cease to have effect if you subsequently divorce or your spouse dies. You can amend or cancel a Non-Lapsing Binding Nomination at any time by updating this in firstonline or sending us a new Nomination of Beneficiary form.
  • if a person you have nominated dies before you or is not eligible to receive a share of your Death benefit, that person’s part will be distributed equally among the surviving nominated dependants and/or Legal Personal Representative.
  • if you do not provide all details requested in this form or if it is not properly witnessed, then First Super considers it a Non-Binding Nomination. We will contact you to advise you of this.
  • if you fail to properly and clearly specify the percentage (%) of your benefit payable to each person, we will send the form back to you to complete correctly so that the percentages add up to 100%.
Tax on payments to beneficiaries (Binding and Non-Binding)

If the person receiving your death benefit is a spouse, financial dependant or children under 18, a lump sum death benefit will be tax free.

If the person receiving your death benefit is an adult child who is not financially dependent on you, they will be taxed:

  • 15% plus Medicare levy on taxed elements
  • 30% tax plus Medicare levy on untaxed elements

Payments to an estate or Legal Personal Representative will be paid as a pre-tax lump sum and the estate will be responsible for tax treatment of the death benefit.

Tax on payments to reversionary beneficiaries

An income stream to your reversionary beneficiary will not be taxed if either:

  • you are aged 60 or older when you pass away or
  • your reversionary beneficiary is aged 60 or older

In all other cases the reversionary beneficiary will be taxed the same way as any other member of the Fund.

If your spouse receiving your Retirement Income payments has tax-free retirement accounts exceeding $1.9 million, they may have to pay extra tax. 

For more information, contact the Australian Taxation Office (ATO).

Seek financial advice

As part of your membership, if you’d like to speak with someone nominating beneficiaries, our financial advise team can step you through your options at no additional cost. Request an appointment online or call 1300 360 988 to arrange a consultation today.