Superannuation After Death in Australia: What Happens and What an Executor Must Do

Have a question about this? Ask the Guide → the chat widget at the bottom-right of this page can answer it. Reading time: 7 minutes | The Executor’s Guide — Plain English. Step by step. Written for the person who just found out.

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Superannuation is one of the most misunderstood parts of estate administration. It does not automatically form part of the estate — it is governed by its own rules, and the will has no authority over it. Here is what actually happens and what you need to do.

Super Does Not Pass Through the Will

This surprises most people. A person’s superannuation balance at date of death is not automatically part of their estate. The superannuation fund trustee has authority to decide who receives the death benefit, subject to the rules of the fund and superannuation law.

The will can only direct assets that form part of the estate. Super only enters the estate if the fund trustee decides to pay it to the estate — or if that is what a binding nomination directs.

The Three Scenarios

1. Valid Binding Death Benefit Nomination (BDBN)

If the deceased made a valid, current BDBN, the trustee must pay the super to the nominated beneficiaries. No discretion. The beneficiaries must be dependants under superannuation law (spouse, de facto partner, children, financial dependants, or the legal personal representative).

Most BDBNs expire after three years unless the fund offers a non-lapsing nomination. Check when it was last updated.

2. Non-Binding Nomination or No Nomination

The trustee uses its discretion to decide who among the eligible dependants receives the benefit. They will consider the deceased’s circumstances, relationship history, and any expression of wishes. This process takes time — often months.

3. No Eligible Dependants

If there are no eligible dependants, the trustee will pay the death benefit to the estate. It then passes under the will and forms part of the assets you administer.

Who Counts as a Dependant for Super Purposes

• Spouse or de facto partner (same or different sex)
• Children of any age (including adult children, stepchildren, adopted children)
• Any person in an interdependency relationship with the deceased (lived together, one provided financial support to the other)
• Any person financially dependent on the deceased at the time of death
• The legal personal representative (executor) — meaning the fund can pay it to the estate

What an Executor Needs to Do

Step 1 — Identify all super funds. Search the deceased’s tax returns, payslips, and emails for super fund names. Use the ATO’s SuperSeeker tool via myGov to search for super accounts linked to their TFN. Contact all employers from the last 20 years if needed.

Step 2 — Notify each fund. Contact the fund’s Deceased Member team with a certified death certificate. They will freeze the account and begin their internal process.

Step 3 — Provide documentation. Each fund will require a certified death certificate, your identification, evidence of your authority as executor (probate), and a completed claim form. Each fund has its own forms.

Step 4 — Wait. The fund’s discretionary process typically takes 3–6 months from notification to payment. For binding nominations, the process is faster — usually 4–8 weeks.

Tax on Super Death Benefits

Whether a super death benefit is taxable depends on who receives it and the composition of the super balance (tax-free vs taxable component).

Paid to a tax dependant (spouse, minor child, financial dependant): generally tax-free.

Paid to an adult child or the estate: the taxable component of the super balance may be subject to tax at 15% (plus Medicare levy), or 17% if the deceased’s TFN was not provided to the fund. The fund will withhold the tax before paying.

This is one area where the structure of super at date of death significantly affects what beneficiaries receive. For large super balances, seek specific tax advice.

The Common Mistake

Assuming super is covered by the will. It isn’t. Executors regularly overlook super funds entirely, or assume the fund will contact them. The fund will not automatically reach out — you must initiate contact with every fund you can identify.

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The Executor’s Guide provides general information about estate administration in Australia. It is not financial or tax advice. Super death benefit taxation is complex — seek advice from a financial adviser or tax accountant for significant balances.

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Related guides

• What to Do When Someone Dies in Australia
• What Is an Executor?
• Executor Duties in Australia: The Complete Legal Guide
• Do I Need Probate? A Plain-English Guide