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Nominating a beneficiary

Leave your money in the right hands.

Deciding who your money goes to if you die, is an important decision.

A super death benefit includes the money in your super account and any insurance payments you're owed,
 minus any applicable fees and taxes. 

Who can you nominate?

This will depend on the type of beneficiary nomination you have, but generally* eligible beneficiaries can include:

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Your dependant/s

  • Your spouse (including a de facto spouse) of the same or a different sex
  • Your children of any age (including your natural, step or adopted children of any age)
  • A person financially dependent on you at the date of death
  • An interdependent

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Your legal personal representative

Someone legally recognised by you to manage your affairs, usually the legal executor or administrator of your estate.

If Rest pays your money to your legal personal representative, it will be paid as a lump sum and will form part of your estate.  

*For reversionary beneficiary nominations, you cannot nominate your legal personal representative, and special conditions apply to nominating children.

Types of beneficiary nominations

Binding beneficiary nomination (Rest Super and Rest Corporate) 

As its name implies, a valid ‘binding’ beneficiary nomination is legally binding, so it means you have the final say on who receives your super. You can nominate a binding beneficiary by completing the Super – binding nomination form and returning it to us.

Binding nominations for Rest Super & Rest Corporate expire after three years. A valid binding nomination must be updated within the three years to remain binding, otherwise it will be treated as a non-binding nomination.  

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Binding beneficiary nomination (Rest Pension)

These are nominations that Rest, subject to accepting the nomination, must follow, and that do not expire after any period of time. If you make this type of nomination, it is important to update it if your circumstances change.

Rest will still have discretion over your death payment if your binding nomination is invalid or if the beneficiary you’ve nominated was not a dependant at the time of your death.

You can make, change, or remove your binding beneficiary nomination by completing a nomination form and sending it to us.  

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Non-binding beneficiary nomination

A non-binding beneficiary nomination acts as a guide for us in deciding who should receive your super. Rest will consider your nomination but ultimately we will use our discretion in deciding who should receive your super, considering your relationships at the time of your death.

You can make, change, or remove your non-binding beneficiary nomination at any time in the Rest App, or online in MemberAccess.

If you already have a binding nomination in place and would like to change it to a non-binding nomination, you won’t be able to do this in MemberAccess - you’ll need to complete a nomination form and send it to us. 

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MemberAccess

Reversionary beneficiary nomination (Rest Pension)

If you nominate a reversionary beneficiary, your dependant at the time of your death will receive ongoing pension payments after you die. You can nominate one reversionary beneficiary when starting your Rest Pension and you can’t change or delete your nomination. You can’t nominate your legal personal representative and there are special conditions regarding nominating a child, which you can learn more about here.

You will need to commence a new pension if you want to change your reversionary beneficiary but depending on when your pension commenced, this may affect how your pension is treated under the deeming rules. 

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Understanding tax implications

There are two different definitions of a dependant that are important for understanding super death benefits:

  • dependant under superannuation law – defines who is eligible to receive a death benefit and if it can be paid as an income stream.
  • dependant under tax law – determines how death benefits (including income streams) may be taxed.

For more information about the different definitions of dependants, visit the ATO website.

While dependants under superannuation law may receive a death benefit, it doesn’t necessarily mean they receive the benefit tax-free.

Dependants for tax purposes will generally receive your superannuation tax-free if it’s paid as a lump sum. 

How to nominate and review your beneficiaries

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Make a binding nomination

You can nominate a binding beneficiary by completing the Rest – nomination of beneficiary form and returning it to us.

Rest super nomination form Rest pension nomination form
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Make a non-binding nomination

Log in to your Rest App → Click ‘More’ → Click ‘Beneficiaries’ → Select ‘Non-binding beneficiaries’.

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Review your beneficiary anytime

You can review your current super beneficiaries by logging in to the Rest App or via MemberAccess.

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Things you should know

What happens if my nomination is invalid, or I don’t make a nomination?

If your nomination is invalid or you don’t have a nomination, Rest will follow relevant laws to decide who receives your balance. This could be either one or more of your dependants, or your legal personal representative (your estate). The decision will take into account your circumstances at the time of your death.

How will my beneficiaries be paid?

For binding and non-binding nominations your nominated beneficiaries will receive their benefit as a lump sum unless they are eligible for a pension.  Rest will advise them of their options at the time of payment.

For a reversionary nomination your beneficiary will continue to receive the pension payments from the account.

How will my beneficiaries be taxed? 

A Death benefit will be taxed differently depending on whether it’s paid to a dependant, non-dependant or to a legal personal representative.  For tax purposes, the definition of dependant is generally the same as the definition used for people you can nominate as a beneficiary under super rules.  It’s also important to know that a child aged 18 or over is only considered dependent if they are financially dependent on you or there is an interdependency relationship.

Taxation issues are complex. You may want to seek professional advice or discuss this matter with your financial adviser, who can guide you based on your circumstances.

What happens if I nominate my legal personal representative?

If Rest decides to pay your money to your legal personal representative, it will be paid as a lump sum to your estate. It will then be distributed according to the terms of your Will or the relevant intestacy legislation that applies to where you lived. 

What happens to my nomination if I close my account?

If you close your account, the nomination on your account will be cancelled unless we advise you otherwise. This includes if you move your full balance from one Rest account to another. 

What does ‘financially dependent’ mean?

This means that the person was wholly or partially dependent on you for necessary financial support such as through regular continuous financial contributions from you.  That is, you provided ongoing support as money, or other support such as food, clothing, transport, education, or accommodation costs.   It doesn’t include loans or one-off gifts from you.

What are the special conditions for nominating a child as a reversionary beneficiary?

  • If you choose to nominate your child as a reversionary beneficiary, there are restrictions on when and how they receive payments. To be eligible to receive your pension, your child must be under age 18 at the date of your death, or between 18 and 25 and financially dependent on you.

  • Pension payments will be paid up to age 25. After this, the balance will be paid as a lump sum. If the child is disabled however, (as described in the Disability Services Act 1986) they can continue to receive pension payments regardless of age.

  • It’s important to be aware that there may be social security implications if you nominate your child. You should always obtain independent professional advice before making decisions.

How can deeming rules affect my nomination?

Deeming rules may or may not apply to your pension, depending on when you first started it. If your pension began before 1 January 2015, you may have been exempt from these rules. However, if you open a new pension on or after 1 January 2015, that new pension won’t be exempt from deeming rules.

If you’re thinking about opening a new Rest Pension to change your reversionary beneficiary, you might want to talk to a financial adviser first. They can help you understand how the deeming rules might affect your situation.