Minister for Finance and Women Katy Gallagher said the Labor government would look at making perpetrators liable for social security debts that were run up through coercion or financial abuse, and at ways to stop perpetrators from getting access to their victim’s superannuation after death.

Under existing laws, an abuser can receive a victim’s superannuation death benefit unless they are the direct cause of that person’s death. This currently applies even if the perpetrator has been convicted of family violence offences, or in cases when there was systemic abuse which indirectly contributed to the cause of the victim’s death.

The changes the coalition of super sector organisations called for include expanding the Forfeiture Rule to prevent perpetrators from inheriting money from their victims, which would require legislative amendment to the Superannuation Industry (Supervision) Act 1993 and increasing investigative powers and evidence standards of superannuation funds, so they are able to withhold death benefit payments in substantiated cases of family violence until the legal matter has been resolved.

Mary Delahunty, ASFA CEO said for too long, perpetrators of family violence have been able to profit from their victims’ death, accessing their super after they died.

“This insidious legal loophole is wrong, and we welcome the government’s announcement they will start working to close it.”

Georgia Brumby, SMC deputy CEO, said closing the legal loophole that permits abusers to access a victim’s superannuation was among SMC’s 12 policy priorities that it asked all parties and independents to support at this election.

“These reforms are about standing up for victims of family violence,” Brumby said.

“A perpetrator getting their victim’s super death benefit is an extension of the abuse. The intention to introduce these reforms is a critical step towards ensuring that people’s superannuation is protected and not used as a financial reward for perpetrators.”

Brumby continued the SMC is urging all political parties and independent candidates to pledge their support for these reforms.

“The superannuation sector stands united and will work with government to bring about the reforms needed to keep members’ money out of the hands of abusers,” Delahunty concluded.

CPA Australia’s Regulations and Standards lead, Belinda Zohrab-McConnell, said that financial abuse involves complex issues – especially in domestic relationships.

“Financial abuse can impose devastating financial and emotional burdens on victim-survivors,” Zohrab-McConnell said.

“CPA Australia supports the proposal to prevent perpetrators of domestic and family violence from receiving their victim's superannuation after death. By blocking access to victims' superannuation, we can avoid enriching perpetrators at the expense of innocent beneficiaries."