First Nations advocates call for super funds to end the harm and commit to mandatory customer service standards

Published on March 31, 2025

Advocates say the only thing super funds do well is take our money.

The Australian Securities and Investments Commission (ASIC) report into superannuation claims handling released this week revealed widespread delays and distress, particularly for First Nations families. Leading First Nations advocates are calling on parliamentarians to commit to legislated mandatory customer service standards in superannuation.

Despite handling billions in retirement savings, most super funds still don’t know which of their members are First Nations, making it impossible to provide fair, culturally appropriate services. ASIC’s report revealed First Nations claimants faced longer wait times, were difficult to access for people in remote communities, and poor communications including ineffective websites and missing paperwork.

Poor oversight of claims handling processes by trustees has led to claims handling delays and failures. “Trust is key to super trustees. We give them our money in good faith - but they fail us,” said Mark Holden, Mob Strong Debt Help Senior Solicitor and Policy Advocate. “Super funds do a great job collecting our money, but let us down when it matters most - when we’ve lost someone, when we’re grieving, and when we need access.”

Major failures identified include:

Death benefit claims in remote communities are processed disproportionally slower
Super funds simply don’t know if they have First Nations or vulnerable members who may require additional assistance to make a claim
Super funds unnecessarily delayed Sorry Businesses by engaging in risk averse activities, causing harm to First Nations peoples families awaiting payments for loved ones, including where a binding nomination was in place
Super funds unnecessarily delayed Sorry Business by engaging in unnecessarily risk averse activities, causing harm to First Nations peoples families awaiting payments for loved ones, including where a binding nomination was in place
Culturally unsafe practices by super funds create a barrier to First Nations people accessing and making claims to their fund.

This inequity is unacceptable. Advocates question how can we talk about Closing the Gap when families can’t even fairly access what is already theirs?

We are calling for mandatory, legislated customer service standards which should include: clear processing timeframes, a requirement for culturally appropriate, plain language communication, and cultural competency training for staff.

Regardless of who forms government after the election, the next Assistant Treasurer must ensure the superannuation system delivers on its core promise—especially for those who have been failed the most.

Quotes:

Mark Holden – Mob Strong Debt Help Senior Solicitor and Policy Advocate

“This report suggests that Trustees are not meeting their obligations to make reasonable efforts to find beneficiaries and make payments”.

“The ASIC report shows that funds across the board are effective at taking our money, but are not consistent or fair in giving it back when sorry business happens”.

“This is a critical moment for the superannuation industry. The treatment of First Nations fund members shows the urgent need to legislate guaranteed member standards. We applaud ASIC for shining a light on these practices”.

Bettina Cooper – Mob Strong Debt Help Senior Financial Counsellor and Strategy Lead

“’Closing the gap’ on intergenerational wealth is being prevented because of the unreasonable barriers on First Nations people accessing our superannuation and death benefits”.

“Funds need to wake up and identify and help vulnerable consumers”.

Unaisi Buli – Indigenous Consumer Assistance Network (ICAN) Senior Financial Counsellor

“A set of standards across the superannuation sector that recognise and address cultural barriers, would facilitate easier access for First Nations peoples.”

“When our clients need to access their super early, which is their own hard-earned money, superannuation companies put up a multitude of barriers that make accessing this super extremely difficult and a demoralising experience. These experiences actually turn our clients away. In the case of one Cape York client who was denied access to his super under financial hardship, the only thing that he could do to access his super was to move it to another company that had a different set of rules.”

Aaron Davis - CEO Indigenous Consumer Assistance Network (ICAN)

“For many of our clients, superannuation is seen as a modern form of stolen wages, as it’s basically money saved that can’t be accessed when it is needed most. The very fact that superannuation rules don’t take into account the gap in life expectancy for First Nations people shows a lack of consideration in design.”

Lynda Edwards, Director of First Nations Policy at Financial Counselling Australia:

"Financial counsellors are forced to jump through endless hoops to help First Nations clients access superannuation that’s rightfully theirs.”

“The system isn’t just slow - it’s failing people when they need it most. Super funds need to ensure the super of deceased loved ones is accessible to their next of kin without delay."

Contact

For further information contact media@financialrights.org.au or 0457 024 683.

About Us

Mob Strong Debt Help is part of the Financial Rights Legal Centre - a community legal centre that specialises in helping consumers understand and enforce their financial rights with consumer financial products and services, especially low income and otherwise marginalised or vulnerable consumers. We provide free and independent financial counselling, legal advice and representation to individuals through our following channels:

Credit and Debt Legal Advice Line 1800 844 949 for those needing legal advice in NSW;
National Debt Helpline 1800 007 007 – for people needing to talk to a financial counsellor (please note this line is answered by a number of different services around Australia, Financial Rights is one of those services);
Financial Rights Legal Centre - https://financialrights.org.au/;
Mob Strong Debt Help 1800 808 488 – our national service for Aboriginal and Torres Strait Islander callers https://financialrights.org.au/mob-strong-debt-help/;
Insurance Law Service 1300 663 464 – our national service focusing on problems with insurance or debts to insurers.