In March 2025, ASIC launched Federal Court action against AustralianSuper — the country's largest superannuation fund — alleging it failed to process death benefit claims efficiently, honestly and fairly between 1 July 2019 and 18 October 2024.
ASIC alleges at least 6,897 death benefit claims were delayed, and that in at least 752 cases the fund did not pay benefits as soon as practicable after a member had died. The allegations are yet to be tested in court.
The key numbers
Source: ASIC media release 25-034MR, 12 March 2025. Allegations are before the Federal Court and not yet proven.
What ASIC alleges
ASIC says that in affected cases, it took between four months and four years from when a member's claim form was returned to when AustralianSuper even began assessing the claim — including 1,140 days in one case. In 254 cases, it allegedly took between 15 and 213 days just to send the claim form out in the first place.
AustralianSuper manages more than $355 billion for over 3.49 million members. ASIC notes the fund was responsible for nearly a quarter of all death benefit complaints made to the Australian Financial Complaints Authority (AFCA) across 2022/23 and 2023/24.
What a death benefit is — and why timing matters
When a super member dies, their super balance and any attached life insurance is paid to their beneficiaries or dependants as a "death benefit". Trustees are legally required to pay it as soon as practicable.
ASIC Deputy Chair Sarah Court said: "Delays are likely to cause further pain and anxiety to people who are already suffering from grief, making what is already a difficult time even harder." She added that it is the trustee's responsibility to resource and oversee these services properly: "Accountability cannot be outsourced."
This follows a separate $27 million penalty
Just weeks earlier, in February 2025, the same fund was ordered to pay a $27 million penalty over a separate failure to identify and merge members' duplicate accounts. You can read about that case in our article on AustralianSuper's $27 million duplicate-accounts penalty.
What beneficiaries should do
These are allegations before the court, not findings. But the case is a clear reminder that death benefit claims can stall — even at very large funds. If you have lodged a claim, or expect to:
- keep records of when claim forms were requested and returned
- follow up the fund in writing and ask what stage your claim is at
- make sure the fund has everything it needs to start assessing
- escalate to the fund's complaints process, then AFCA, if it drags on
- seek help if you are facing financial hardship while you wait
Free Claim Check
At ClaimSure, we help people understand and follow up potential life insurance and death benefit claims through super — including where a claim has stalled.
We can help you:
- review your situation in plain English
- identify relevant super accounts, including lost or forgotten super
- understand whether there may be a death benefit, TPD, or income protection claim worth pursuing — and what to do if it is being delayed
Start with a Free Claim Check
Wondering if any of this applies to your situation? Reach out and we'll review your circumstances together — no obligation, plain English.
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