Superannuation Law FAQ

The Superannuation Industry (Supervision) Act 1993 (Cth) is the primary federal superannuation statute. It regulates trustees, investments, member accounts, benefit payments, and prudential standards. Breach attracts civil and criminal sanctions and loss of complying fund status.

APRA regulates APRA-regulated funds (most public offer, industry, retail, corporate funds); the ATO regulates SMSFs; ASIC regulates conduct, disclosure, and licensing; AFCA handles member complaints. The SIS Act is the common underlying statute.

A complying fund must be maintained solely for one or more of the prescribed retirement, termination of employment, death, or related purposes. Breach invalidates concessional tax treatment and attracts trustee sanctions. It is the cornerstone of super trust law.

Concessional contributions are pre-tax (employer SG, salary sacrifice, personal deductible). Non-concessional contributions are after-tax. Each has annual caps (indexed), with a 3-year bring-forward rule for non-concessional. Excess contributions trigger tax on the excess.

The SG rate is legislated to rise to 12% from 1 July 2025 (having been 11.5% for 2024–25). Employers must pay SG on ordinary time earnings for eligible employees. Failure to pay triggers the SG charge.

Payday Super is the government reform requiring SG to be paid at the same time as salary/wages, commencing 1 July 2026. It replaces the quarterly SG payment timetable with a pay-cycle alignment. Implementation details continue to be finalised as at 2025.

Super is not a deceased estate asset unless paid to the LPR. The trustee pays to dependants (spouse, children, interdependant, financial dependant) or the LPR. A binding death benefit nomination directs the trustee; a non-binding nomination is considered.

A BDBN is a trustee-binding direction (subject to statutory formalities and the fund deed) specifying to whom a member's death benefit must be paid. Most BDBNs require renewal every 3 years unless the fund provides for non-lapsing nominations.

Under SIS s 10: spouse (including de facto and same-sex), child (of any age), a person in an interdependency relationship, or a person financially dependent on the member. Tax dependant (ITAA 1997 s 302-195) has a narrower definition for tax-free payment.

Total and Permanent Disablement insurance pays a lump sum where the member meets the fund's TPD definition. The insurer assesses; the trustee is the first-instance decision-maker; AFCA is the external review. Common definitions: "any occupation" and "ADL".

Generally 2 years from the date the complainant knew or should reasonably have known they suffered the loss. For super death benefit complaints, 28 days from notice of the trustee's proposed distribution. Rules vary by complaint type.

A self-managed super fund is a super fund with 1–6 members where each member (or their LPR) is a trustee. SMSFs are regulated by the ATO, must comply with SIS, and are subject to specific investment and related-party rules.

Generally prohibited unless the asset is a "business real property" or the acquisition falls within the in-house asset 5% limit. Related-party loans and leases are also restricted. Breach triggers trustee penalties and potential compliance sanctions.

The SIS Act imposes statutory covenants on trustees (including acting honestly, exercising the degree of care a prudent person would exercise, and acting in the best financial interests of members). The "best financial interests" duty was strengthened in 2021.

Fund deed, member's BDBN or non-binding nomination, death certificate, will and LPR grant, claim forms, evidence of financial dependency / interdependency, minutes of trustee deliberations, and any AFCA correspondence. Quillio can map BDBN validity against SIS r 6.17A formalities.

Straightforward dependant payments: 1–3 months. Contested claims with multiple potential beneficiaries: 6–18 months through trustee determination plus AFCA review. Court proceedings on top add another 6–18 months.

Yes. Superannuation is treated as property under the Family Law Act and can be split pursuant to consent orders, court orders, or a binding financial agreement. Splits must comply with SIS Part VIIIB and the fund's procedural requirements.

AFCA is free to members. Legal costs to prepare a member complaint: $5,000–$30,000. Contested death benefit litigation: $50,000–$300,000+ where multiple parties are involved. Contingency fee arrangements are common in TPD work.

On a complex BDBN, before an SMSF acquires a related-party asset, on receipt of an APRA or ATO notice, before responding to an AFCA complaint, and on the interface between super, tax, and estate planning. Binding advice decisions frequently turn on formalities.

The TBC is the lifetime cap on the amount that can be transferred into retirement phase pensions with tax-free investment earnings. It is indexed — the general cap rose to $1.9m from 1 July 2023 and is expected to index further. Personal caps apply.