Your super beneficiary nomination tells your fund who should receive your super when you die. Without one, the fund's trustee decides — and their decision might not match your wishes, especially in complex family situations. Yet many Australians either have no nomination, have one that's expired, or don't understand the different types.
Types of nominations
Non-binding (preferred) nomination
You tell the fund who you'd prefer to receive your super. The trustee considers your wishes but has the final discretion. This is the default in most funds.
- Pros: Flexible; the trustee can adapt to circumstances (e.g. if your nominated person predeceases you)
- Cons: No guarantee your wishes will be followed; the trustee may consider competing claims from other dependants
Binding nomination
The trustee must pay your super to the people you nominate, provided the nomination is valid. You can only nominate dependants (spouse, children, financial dependants, interdependency) or your estate (legal personal representative).
- Pros: Certainty — your super goes exactly where you want
- Cons: Usually expires after 3 years and must be renewed. If it lapses, the trustee reverts to discretion.
Non-lapsing binding nomination
Same as binding but doesn't expire. Not all funds offer this — check with your fund. If yours does, this is generally the best option for certainty without the administrative burden of remembering to renew every 3 years.
Who can you nominate?
Under super law, you can nominate:
- Your spouse (including de facto and same-sex partners)
- Your children (of any age, including step-children and adopted children)
- Anyone financially dependent on you at the time of death
- Anyone in an interdependency relationship with you
- Your legal personal representative (your estate — the super is then distributed according to your will)
Nominating your estate vs nominating individuals
| Nominate individuals | Nominate estate (LPR) | |
|---|---|---|
| Speed | Faster — paid directly to beneficiary | Slower — must go through probate/estate administration |
| Flexibility | Limited to super-law dependants | Can distribute to anyone via your will |
| Creditor protection | Super paid directly is generally protected from the deceased's creditors | Once in the estate, it may be accessible to creditors |
| Tax | Tax depends on whether recipient is a tax dependant | Tax depends on ultimate beneficiary under the will |
| Contestability | Harder to contest (binding nomination) | Will can be contested (family provision claims) |
When to review your nomination
Review and update your nomination whenever:
- You get married or enter a de facto relationship
- You separate or divorce
- You have children
- A nominated beneficiary dies
- Your financial dependants change
- Your binding nomination is approaching its 3-year expiry
How to update your nomination
- Log into your super fund's member portal
- Navigate to the beneficiary nomination section
- Select the type of nomination (non-binding, binding, or non-lapsing binding)
- Enter your beneficiary details and allocation percentages
- For binding nominations, you'll typically need two witnesses to sign the form
- Submit and confirm the nomination has been processed