A major new report released today reveals that Australia’s $4 trillion superannuation system is failing First Nations peoples – denying many access to their own money in retirement, during financial hardship or after the death of a loved one. This means that First Nations Australians are more likely to miss out on the benefits of super and are twice as likely to have lost or unclaimed super compared to the national average.
The independent research commissioned by Super Consumers Australia with Mob Strong Debt Help and Impact Economics and Policy, highlights the systemic barriers First Nations peoples face including rigid policies, inaccessible customer service and a lack of accountability.
“Superannuation is meant to be a retirement safety net for all Australians. But too many First Nations peoples are shut out of a system that is meant to serve us”, says Mark Holden, Senior Solicitor from Mob Strong Debt Help.
“Rigid ID verification rules, culturally unsafe customer service and a reliance on digital-only processes means it can take our mob months or even years to access their own money, if they are still alive.”
The research found that:
- First Nations peoples are denied access to their own super even in retirement or financial hardship because of unreasonable barriers in proving who they are;
- customer service failures disengaged consumers, driving some to abandon their rights; and
- First Nations peoples face enormous barriers to accessing death benefits and they are taking significantly longer to pay out.
Financial counsellors like Alex Price-Busch from ICAN says he sees the harm first-hand. “We spend hours on the phone to super funds or the ATO trying to help clients who are struggling to access their super when they’re doing it tough. We see families fighting to claim death benefits while grieving. Many just give up because it’s too hard.”
Super Consumers Australia CEO Xavier O’Halloran says urgent reforms are needed to make super work for all Australians. “These aren’t isolated cases. It’s a system that disproportionately shuts out First Nations peoples and anyone else who might be an older Australian, living remotely, experiencing vulnerability or have language barriers. The government and super industry must act now to fix it.”
We are calling for:
- Mandatory customer service standards for super funds to drive better consumer outcomes.
- Adequately resourcing financial counselling and legal support on superannuation issues for First Nations peoples.
- Requirements for the ATO and super funds to provide culturally safe support, including helping First Nations peoples with identity checks.
“The system makes it easy for funds to take people’s money but makes it almost impossible to access it when people need it most. These issues have been known for decades. There’s been enough consultation and reviews. Now is the time for action,” says Bettina Cooper, Senior Financial Counselling and Strategy Lead from Mob Strong Debt Help.
To read the full report, visit: https://superconsumers.com.au/buildingfutures
