Superannuation · Estate planning •
Binding vs non-binding death benefit nominations: who gets your super when you die?
Your will doesn’t automatically decide who gets your super. Your fund’s rules and your nomination play a big part. Here’s how binding and non-binding nominations work, and how to check yours still does what you want.
A binding death benefit nomination is a written instruction that tells your super fund who must receive your super when you die. If it’s valid, the fund has to follow it. A non-binding nomination is only a guide, and the fund makes the final call.
That difference matters. Your will doesn’t automatically control your super. And a binding nomination can stop working if it expires or wasn’t completed correctly.
If you read nothing else, read this
- Your super doesn’t automatically form part of your estate, so your will doesn’t automatically control it.
- A valid binding nomination tells the fund who to pay. A non-binding one leaves the decision with the fund.
- Lapsing binding nominations expire, usually after three years. Non-lapsing ones don’t.
- You can only nominate eligible people, such as dependants, or your estate.
- The death benefit can include insurance held inside your super.
Each point is explained, with its source, in the sections below.
What is a binding death benefit nomination?
A binding death benefit nomination (BDBN) is a written direction to your super fund. It names who should receive your super when you die. If it’s valid, the fund must pay your super to the people you named, unless doing so would be unlawful.
Not every fund offers every type of nomination, so the first step is to ask yours what it offers.
Source: Moneysmart (ASIC), binding death benefit nomination
Why doesn’t your will decide who gets your super?
Your will deals with assets in your estate. Super usually isn’t one of them. It’s held by your fund, and it usually passes by a beneficiary nomination rather than under your will.
So when you die, who receives your super depends on your nomination, your fund’s rules and super law.
Source: Victoria Legal Aid, wills and estates
As at September 2026: Super Consumers research, reported by the ABC in August 2026, estimates about 15.7 million people don’t have a binding nomination. The federal government has been consulting on set time frames for funds to handle death benefit claims. The Super Members Council says the law currently requires a paper form with wet-ink signatures, and that funds are exploring digital signing. Check for changes before you act.
Source: ABC News, 10 August 2026
Binding vs non-binding: what’s the difference?
There are several positions you could be in. Not all funds offer all of them.
| Your position | Who decides | Does it expire? | Worth knowing |
|---|---|---|---|
| Binding (lapsing) | The fund must pay your nominated eligible beneficiary | Yes, unless renewed or changed every three years | Set a reminder before it expires |
| Binding (non-lapsing) | The fund must pay your nominated eligible beneficiary | No | Not every fund offers it |
| Non-binding | The fund. Your nomination is a guide | Check with your fund | The fund isn’t bound to follow your wishes |
| Binding reversionary (pension accounts) | Your pension can continue to your beneficiary | No | In some cases it can’t be changed once made |
| Invalid binding nomination | The fund | Not applicable | Normally treated the same as a non-binding one |
A non-binding death benefit nomination gives you less control, but more flexibility for the fund. A binding one takes more effort to make, but gives you more certainty about who receives your super.
Source: Moneysmart (ASIC), who gets your super if you die
Lapsing or non-lapsing: which do you have?
A lapsing nomination expires unless you renew it, usually every three years. A non-lapsing nomination has no expiry date.
How to check yours: look at your annual statement or your online account, or call your fund. It should tell you which type you have and, if it lapses, when it expires.
Whichever type you have, review it when your circumstances change.
The nomination types are set out in the comparison above.
Who can you nominate?
You can’t nominate just anyone. Under super law, your dependants include:
- your spouse or de facto partner (of any sex)
- your children, of any age
- a person in an interdependency relationship with you.
You can also nominate your legal personal representative, which is the executor of your estate. If you want to leave super to someone who isn’t a dependant, the ATO suggests nominating your estate so your will can direct it.
A neighbour, grandchild or sibling generally can’t be nominated unless they meet the definition of a dependant for super purposes.
Who can receive your super is a separate question from who pays tax on it. Tax law uses a different test for who counts as a dependant. We cover the tax side in super or savings: which to spend first in retirement.
Sources: ATO, superannuation death benefits; ABC News, 11 August 2026
Does it cover the insurance inside your super?
A super death benefit can include your account balance, any insurance held inside super (such as life cover), and any other amount the fund needs to pay. So if you have life cover through super, the payout forms part of what your nomination directs.
If you’re reviewing your life insurance, check your nomination at the same time.
Source: Moneysmart (ASIC), claiming a super death benefit
How do you fill in a binding death benefit nomination form?
Get the form from your fund. Each fund has its own. Using AustralianSuper’s form as an example, a valid nomination must:
- be made in writing on the fund’s form
- state each beneficiary’s share, with the total adding up to exactly 100%
- say whether it’s lapsing or non-lapsing (the form is invalid if you leave this out)
- be signed and dated in front of two eligible witnesses (see the next section)
- have any corrections initialled and dated by you and both witnesses on the same day.
Other funds may have different steps. Once you’ve sent the form, keep a copy and confirm your fund has received and accepted it.
Source: AustralianSuper, binding death nomination form (super members)
Who can witness the form?
At AustralianSuper, your form is only valid if you physically sign it in front of two witnesses. Both witnesses must be 18 or older and can’t be one of the beneficiaries you’re nominating. They must sign and date the form on the same day as you.
Other funds set their own rules, so read your form’s instructions closely.
Source: AustralianSuper, nominate a super beneficiary
Does a binding nomination override your will?
A valid binding nomination legally binds your fund to pay your super the way you chose. You can direct it to specific people, or to your legal personal representative so it’s dealt with under your will.
So if you nominate your estate, your will decides where your super goes. That makes it important for your will and your nomination to say the same thing. Speak to an estate planning lawyer about how the two should fit together.
Source: Colin Biggers & Paisley, superannuation, your will and death benefit nominations
Can a binding nomination be challenged?
A valid binding nomination must be followed. So if there’s a dispute, a key question is whether the nomination was valid when you died.
Where there are several possible beneficiaries, AustralianSuper, for example, may tell claimants its proposed decision. They then have 28 days to object. Anyone who disagrees with the final decision has 28 days to complain to the Australian Financial Complaints Authority (AFCA), and no payment is made until AFCA’s assessment is complete.
Source: AustralianSuper, super death benefit
What about a binding death benefit nomination in an SMSF?
The ATO’s view is that the nomination rules in the super regulations don’t apply to self-managed super funds. That means an SMSF’s own rules can allow binding nominations that don’t follow those rules. A nomination still isn’t binding to the extent it names someone who can’t receive a benefit under super law.
The ATO also says an SMSF’s trust deed must be followed, even if it differs from a member’s will. So your deed and nomination need to line up.
Sources: ATO, SMSF Determination SMSFD 2008/3; ATO, death of an SMSF member
When should you update your nomination?
Review it when your life changes. For example, when you:
- marry, separate, divorce or start a new relationship
- have a child, or a child becomes independent
- start a pension. Some funds, such as AustralianSuper, need a separate form for each account you hold
- move or combine your super. Check whether you need to make a new nomination with the fund you keep
- have a lapsing nomination close to its expiry date.
The ATO’s super health check includes checking your nominated beneficiary. If you’re starting an income stream, our guide to account-based pensions explains how they work.
Sources: AustralianSuper, binding death nomination form (pension members); ATO, super health check
Should you make a binding nomination?
That depends on your family, your fund and your will, so it’s a personal decision. This article can’t make it for you.
Without a valid binding nomination, the fund’s trustee decides who receives your super. A binding nomination can expire, and if it lapses, the trustee may choose instead. Keeping it current helps make sure your wishes are followed.
Source: Velos Lawyers, wills and estates in Victoria FAQs
Does living in Melbourne change anything?
Your super is dealt with under your fund’s trust deed, the national super laws and any valid nomination. Your will deals with your estate. If you live in Victoria, speak to a Victorian estate planning lawyer about how your will and nomination work together.
Source: Parke Lawyers, how to make a valid will in Victoria
Summary
Your will doesn’t automatically decide who gets your super. Your nomination and your fund’s rules do. A binding death benefit nomination gives you more certainty than a non-binding one, but only if it’s valid, current and names people who are eligible.
Check which type you have, when it expires, and whether it still matches your family. Then check your will says the same thing.
We’re based in Bundoora and work with clients across Melbourne, and Australia-wide by secure video.
Book a free consultationFrequently asked questions
These answers summarise the sections above. Sources are listed in each section.
Should I make a binding death benefit nomination?
Does a binding death nomination override a will?
Who can witness a binding death benefit nomination?
Can a binding death benefit nomination be challenged?
How long does a binding nomination last?
What happens if my binding nomination is invalid or has expired?
What happens if I don’t make a nomination?
Can I nominate my brother, sister or grandchild?
Can I nominate my estate?
Does my nomination carry over if I change funds?
Next steps
If you’d like to check your nomination, you can read how we approach super and retirement planning, or book a conversation.
With 17+ years’ experience and over 1,000 retirement plans built for Australian families, Manny works with clients aged 50 to 65 across Bundoora, metropolitan Melbourne, and nationally via video consultation. His focus is helping pre-retirees replace uncertainty with a clear, evidence-based plan.
The Watermans Bundoora, Level 2, 1/3 Janefield Drive, Bundoora VIC 3083
+61 433 564 003 · manny@planmywealth.com.au · Book a free consultation
Sources
Each source is listed once, in the order it appears. Information is current as at 17 September 2026. Fund rules vary, so check your own fund.
Sources & how we checked this
Each source is listed once, in the order it appears. Information is current as at 17 September 2026. Fund rules vary, so check your own fund.
- Moneysmart (ASIC) — Binding death benefit nomination (updated 4 June 2026)
- Victoria Legal Aid — Wills and estates
- ABC News — Millions of Australians could have no say in who inherits their super (10 August 2026)
- Moneysmart (ASIC) — Who gets your super if you die (updated 18 June 2026)
- ATO — Superannuation death benefits (updated 10 July 2026)
- ABC News — Where does your superannuation go when you die? (11 August 2026)
- Moneysmart (ASIC) — Claiming a super death benefit (updated 30 July 2026)
- AustralianSuper — Binding death nomination form (super members)
- AustralianSuper — Nominate a super beneficiary
- Colin Biggers & Paisley — Superannuation, your will and death benefit nominations
- AustralianSuper — Super death benefit
- ATO — SMSF Determination SMSFD 2008/3
- ATO — Death of an SMSF member (June 2026)
- AustralianSuper — Binding death nomination form (pension members)
- ATO — Super health check
- Velos Lawyers — Wills and estates in Victoria FAQs (February 2026)
- Parke Lawyers — How to make a valid will in Victoria (July 2026)
General advice warning. This is general information only and not personal financial advice. It doesn’t consider your objectives, situation or needs. It is also not legal advice; speak to a qualified estate planning lawyer about wills and estates. Superannuation and tax rules are complex and can change, and each super fund sets its own nomination rules. Fund examples are included for illustration only and are not recommendations. Information is current as at 17 September 2026. Consider whether this information is appropriate for your circumstances and speak to a licensed financial adviser before acting.
