How to nominate a beneficiary for your super or pension

If you don’t make a benefit nomination, or your nomination is invalid, your fund’s governing rules will determine who receives your super. This may include:

• Paying it to your legal personal representative (estate), or
• Paying it to the eligible beneficiaries as your fund considers appropriate.

Depending on who your super is paid to – and how they receive the money – there may be taxes involved. 

For lump sums, tax will depend on whether it is received by a tax-dependant. This is different to a super dependant and includes:

• your spouse (including a de facto spouse) or former spouse
• your children aged under 18
• someone fully financially dependent on you
• someone you had an interdependent relationship with. 

If a tax-dependant receives your super as a lump sum, it’s tax free. In this case, your beneficiary doesn’t need to include it in their income tax return. However, a non-tax dependant may be required to pay tax on part or all of the lump sum they receive.

If a lump sum is paid to your estate, the tax will depend on whether it will be directed to tax dependants or non-tax dependants via your estate.3

For super paid to your beneficiary as an income stream, tax will depend on a range of factors, including the age of both you and the recipient and the taxable and tax-free components of your super account. In most cases, if either you or your beneficiary are aged 60 or over, the income stream payments will be tax free.

That doesn’t mean paying a lump sum to your dependants is always the smartest option. You should consider speaking with a financial adviser if you’re unsure on the most tax-effective way to pass on your super or just want to know more about how these taxes work.

A binding or non-lapsing death benefit nomination can provide more certainty than other nomination options. In most cases, where a binding or non-lapsing nomination remains valid at the time of death, it cannot be challenged via the super fund, the Australian Financial Complaints Authority (AFCA), or the Courts.

However, your nomination could be challenged on the grounds it is invalid at the time of death. For example, if there is insufficient evidence to prove the nominated beneficiary is a super dependant or the trustee cannot identify there is an estate.

It is also important to note that notional estate laws (currently only applicable in NSW) may in some cases allow a Court to make family provision orders out of assets that do not form part of a person’s estate – this can include super paid to an individual via a binding or non-lapsing death nomination.  

If you prefer, you can also nominate a beneficiary with a Non-lapsing Death Benefit Nomination Paper Form.

You'll have to print the form and have it signed and dated in front of two eligible witnesses.

Once completed, you can:

Return Documents Online.

By using our secure online system FirstNet, click here to log in. Once logged in, select e‑Post or My Account, and select e-post a request or upload scanned form.

Or

Post

Colonial First State

GPO Box 3956

Sydney NSW 2001

We’ll usually process your form within five working days of receiving it. 

To nominate a beneficiary to receive your pension payments if you pass away, complete a Reversionary beneficiary form. You can:

Return the Documents Online by using our secure online system FirstNet. Once logged in, select e‑Post or My Account, and select e-post a request or upload scanned form.

Or

Post

Colonial First State

GPO Box 3956

Sydney NSW 2001

We’ll process your completed form within five working days of receiving it.