A super system overhaul is needed to close the gap for First Nations Australians
A groundbreaking new report by Super Consumers Australia and Mob Strong Debt Help has found that Australia’s superannuation system is failing too many First Nations Australians — locking them out of funds they have rightfully earned and deepening existing social and economic inequalities.
The report, Building Futures, Not Barriers: Superannuation That Works, draws on the experiences of 99 First Nations consumers and 19 financial counsellors and case workers. It reveals systemic problems in identity verification processes, inadequate customer service, and complex death benefit claims that create unnecessary hardship and distress for First Nations peoples.
Rigid ID requirements are blocking access
One of the most significant issues identified was overly rigid identity verification rules. Many First Nations people lack standard identification documents or have mismatched personal details due to historic government practices, administrative errors, or cultural name changes.
ICAN Financial Counsellor Alex Price-Busch says these rules leave too many clients stranded.
“We see people with multiple forms of ID, each with small differences in their details, being told over and over to produce documents they simply don’t have. These are not cases of fraud risk — they’re the result of structural disadvantages and cultural practices. The system should be flexible enough to work with people, not shut them out.”
Customer service gaps are driving people to give up
The report highlights inadequate and culturally insensitive customer service, including long phone wait times, a lack of interpreter access, confusing communication, and excessive paperwork demands. These barriers often lead First Nations members to abandon their claims.
“Some of our clients face months or even years of back-and-forth with super funds, only to be asked for the same documents again,” Alex Price-Busch explains. “For people in remote areas with limited internet or phone access, these delays are more than an inconvenience — they can mean missing out on vital funds in times of hardship.”
Delays in death benefits compounding grief
The report also found that First Nations families often face long and costly processes to access a deceased loved one’s superannuation, sometimes being pushed into costly court processes for small amounts of money.
“Funerals hold deep cultural significance in our communities,” says Price-Busch. “To make grieving families wait months, sometimes years, for funds to cover those costs is not only bureaucratically unjust — it’s culturally harmful.”
Call for urgent reform
The report outlines a roadmap for reform by the end of 2026, including:
- Legislating flexible ID verification processes in line with AUSTRAC guidance
- Introducing mandatory, enforceable customer service standards for super funds and the ATO
- Reviewing the death benefit system to recognise First Nations kinship structures
- Increasing funding for financial counselling and piloting a community legal service for superannuation
Alex Price-Busch says the recommendations are not just about fixing a financial system, but about closing the gap.
“Super is meant to give everyone a dignified retirement and provide support in tough times. For that to happen, the system needs to work for First Nations peoples — and that means removing the barriers we know exist and acting on these solutions now.”
ICAN stands alongside Super Consumers Australia and Mob Strong Debt Help in calling for the Government, regulators, and the superannuation industry to prioritise these reforms as part of their Closing the Gap commitments.