AustraliaI made a binding death benefit nomination on my super fund. Can it be challenged?
Yes, a binding death benefit nomination (BDBN) can be challenged in Australia if it is invalid — for example, if it wasn’t properly signed, witnessed, or made when the member had legal capacity.
What the Law Says
Binding death benefit nominations are governed by the trust deed of the super fund and the Superannuation Industry (Supervision) Act 1993 (Cth). A valid BDBN must comply strictly with both the SIS Act and the fund’s own rules.
A binding death benefit nomination is not automatically enforceable just because it’s signed. It must meet statutory and trust deed requirements to be valid. Under the SIS Act, trustees must pay benefits in accordance with a valid BDBN — but only if it complies with the law and the fund’s trust deed.
The SIS Regulations require that a BDBN be in writing, signed by the member in the presence of two adult witnesses who are not potential beneficiaries. The member must also have legal capacity at the time of signing.
Most BDBNs are 'lapsing' — meaning they expire three years after signing unless renewed. Non-lapsing (or 'non-expiring') BDBNs are only permitted if the fund’s trust deed explicitly allows them and the fund is a self-managed super fund (SMSF) or meets other strict conditions.
Statutory TextA trustee of a superannuation fund must pay a death benefit to the person or persons nominated in a binding death benefit nomination that complies with the requirements of the trust deed and the regulations.
— Superannuation Industry (Supervision) Regulations 1994, reg 6.17(1) — Payment of death benefits
Statutory TextA binding death benefit nomination must be in writing and signed by the member in the presence of two witnesses, each of whom is at least 18 years of age and who is not a beneficiary under the nomination.
— Superannuation Industry (Supervision) Regulations 1994, reg 6.17(3) — Form of binding death benefit nomination
What to Do
Check your fund’s trust deed to confirm whether it permits binding nominations and whether it allows non-lapsing BDBNs.
Ensure your BDBN is signed in front of two eligible witnesses (both aged 18+ and not beneficiaries).
Renew your BDBN every 3 years if it’s a lapsing nomination — or confirm it remains valid under your fund’s rules.
Seek legal advice before making or challenging a BDBN, especially if there are concerns about capacity, undue influence, or competing claims.
If you believe a BDBN is invalid, contact the fund trustee in writing and request reasons for their decision to follow or disregard it.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.