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Australians are experiencing the greatest intergenerational wealth transfer in history. Our compulsory superannuation contribution system is a driving force behind this growth in inheritance. Although superannuation was designed to provide income during retirement, many Australians now die with the majority of their superannuation balances intact. The excess superannuation is inherited by others as death benefits. With tax concessions, the total amount of our superannuation inheritances is projected to grow from $17 billion in 2019 to $130 billion in 2059.

The Australian Government has identified the need for imminent reform to our superannuation system. This is particularly evident for superannuation inheritance law, which despite its growing significance is rudimentary and underexamined. The law governing the inheritance of superannuation generally gives superfunds broad discretion to distribute the staggering amount of superannuation inheritances, yet little is known about how superfunds actually exercise such discretion in reality.

Using a novel empirical-legal methodology, this project seeks to gain new knowledge about how superfunds distribute superannuation inheritances in practice and how complaints against superfund decisions are resolved. These new empirical findings will guide the formulation of law and industry-practice reforms with a view to effectuating testamentary choices, safeguarding against financial abuse, and advancing societal interests in intergenerational equity, philanthropy and fiscal responsibility.

The project’s findings and recommendations can be adopted by superannuation funds themselves, delivering immediate benefits to Australian families and society. The law reform and policy recommendations can be adopted by Parliament and oversight bodies. 

This project is funded by an Australia Research Council (ARC) Discovery Project (DP), Grant ID .