Under a Death Benefit Agreement, you can nominate the following Beneficiaries to receive your Super Benefit on death:
Spouse
You can nominate your Spouse (includes DeFacto and same sex couples) to receive your Super Benefit on death as either a Pension or Lump Sum payment.
Former Spouse
You can nominate your former Spouse (includes DeFacto and same sex couples) to receive your Super Benefit on death as a Lump Sum payment only.
Any Child Under 18
You can nominate any Child (including an adopted or step child) under the age of 18 to receive your Super Benefit on death as either a Pension or Lump Sum payment. It is noted that a Pension can only be paid to a Child up to the age of 25. After that time they must take the remaining Super Benefit as a Lump Sum.
Any Child aged between 18 and 25 that is Financially Dependent on you
You can nominate any Child (including an adopted or step child) aged between 18 and 25 that is Financially Dependent on you, to receive your Super Benefit on death as either a Pension or Lump Sum payment. It is noted that a Pension can only be paid to that Child up to the age of 25. After that time they must take the remaining Super Benefit as a Lump Sum.
Any Child aged between 18 and 25 that is NOT Financially Dependent on you
You can nominate any Child (including an adopted or step child) aged between 18 and 25 that is NOT Financially Dependent on you, to receive your Super Benefit on death as a Lump Sum payment only.
Any Child aged over 25
You can nominate any Child (including an adopted or step child) over the age of 25 to receive your Super Benefit on death as a Lump Sum payment only.
Any Child Permanently Disabled irrespective of age
You can nominate any Child who is Permanently Disabled (irrespective of age) to receive your Super Benefit on death as either a Pension or Lump Sum payment.
Any Person who was Financially Dependent on you
You can nominate any Person who was a Dependent just before death to receive your Super Benefit on death as either a Pension or Lump Sum payment.
Any Person with whom you had an 'Interdependency Relationship' just before death
You can nominate any Person with whom you had an 'Interdependency Relationship' just before death to receive your Super Benefit on death as either a Pension or Lump Sum payment.
An interdependency relationship between two people is where:
(a) they have a close personal relationship; and
(b) they live together; and
(c) one or each of them provides the other with financial support; and
(d) one or each of them provides the other with domestic support and personal care.
Note under the definition of 'Interdependency Relationship' if two persons satisfy the requirement of (a); but they do not satisfy the other requirements because either or both of them suffer from a physical, intellectual or psychiatric disability, then they are still classed as having an interdependency relationship. Further, two persons will not have an interdependency relationship if one of them provides domestic support and personal care to the other under an employment contract or a contract for services or on behalf of another organisation such as a government body.
Your Estate via your Legal Personal Representative
You can nominate your Estate via your Legal Personal Representative (this is usually the Executor of your "Will") to receive your Super Benefit on death as a Lump Sum payment only. Under this option your Super Benefit will be distributed in accordance with your "Will". Importantly, a Death Benefit Agreement cannot directly specify a person other than a Spouse, child or someone financially dependent on you or with whom you have "Interdependency Relationship" with. Accordingly if you want to leave your Super Benefit to another person (eg a friend) you must nominate your Estate via your Legal Personal Representative to receive your Super Benefit when executing a Death Benefit Agreement. Your "Will" in turn allows your Super Benefit to be paid to the specified person.
Financially Dependent Definition
Superannuation Law does not define what "Financially Dependent" means, but this term is very important as it dictates who you can distribute your Super Benefit to on death and the respective taxation payable on any benefit received by the beneficiary on a Member's death. Generally a practical approach should be applied and Financially Dependent will be taken to mean that a person relies on the Member for their financial maintenance. This may be because they are sick or unable to work in their own capacity to sustain themselves financially.