The fund is defending itself against a legal case brought by the Australian Securities and Investments Commission (ASIC) over delays in payments to families of deceased members. While ASIC asserts that AustralianSuper knew about significant delays for years and failed to act quickly, the fund contends that the claims are overstated and do not consider complications caused by the tax office, legal procedures and third-party processors.
The case focuses on more than 6,000 death benefit claims that took over four months to resolve. Under Australian law, such payments must be made as soon as reasonably practicable. In its 120-page defence, AustralianSuper argues that most of these claims were resolved within a year and involved unique and complex circumstances. Managing $365 billion for 3.5 million Australians, the fund cites factors like missing documents, incorrect bank details and delays from the Australian Taxation Office as outside its control.
ASIC’s core allegation is that AustralianSuper failed to meet its obligations by not addressing known delays in processing thousands of claims, thereby breaching member trust. The regulator referenced a similar case it pursued in 2024 against another major superannuation fund. In response, AustralianSuper stated that reviewing nearly 7,000 claims on an individual basis would be a misuse of court resources. It also noted that the delays had been subject to internal discussions and were handled with regular oversight.
This legal dispute highlights growing regulatory focus on the superannuation sector and how funds address sensitive and time-critical matters such as death benefits. AustralianSuper insists it has made efforts to improve its procedures. However, the broader discussion now revolves around how super funds manage the balance between legal compliance, operational complexity and the expectations of their members.
