Superannuation peak bodies have called for law changes to stop domestic abusers claiming their victims’ funds.

The Super Members Council, Association of Superannuation Funds and Women in Super proposed reforms in a joint letter to Financial Services Minster Stephen Jones and other key ministers.

They urge the federal government to consider expanding the forfeiture rule to cover family violence-related crimes and investigate reforms that would allow super funds to withhold death benefits in substantiated cases of family violence.

Under current laws, an abuser can receive a victim’s superannuation death benefit unless they are the direct cause of that person’s death. This applies even if the perpetrator has been convicted of family violence offences, or in cases when there was systemic abuse that indirectly contributed to the death.

“Perpetrators should not profit from their crimes,” Super Members Council CEO Misha Schubert said. “It’s time to close this legal loophole to protect victims of family violence and financial abuse.

“A perpetrator getting their victim’s super death benefit is an extension of the abuse, and the super sector has come together to call for urgent reform.”

Association of Superannuation Funds CEO Mary Delahunty says the sector is unified in the belief that victims of family violence should not be further victimised through misuse of the super system.

“The reforms we are calling for will be a critical step towards ensuring people’s superannuation is protected and not used as a financial reward for perpetrators,” she said.

“These reforms are about standing up for victims of family violence. We are committed to working with the government to make these necessary changes to protect those who have been wronged, not those that have caused harm.”

Women in Super CEO Jo Kowalczyk says the proposed reforms “are not just about preventing financial gain for perpetrators. They are about sending a clear message that Australia will not tolerate abuse in any form. This is an opportunity for us as advocates and policymakers to work together to ensure super is not being used as a mechanism for financial abuse.”