Binding Death Benefit Nomination Template
A binding death benefit nomination (BDBN) directs the trustee of your Australian superannuation fund to pay your death benefits to specified dependants or your legal personal representative. Our free template complies with section 59 of the Superannuation Industry (Supervision) Act 1993 (Cth) and covers both lapsing and non-lapsing BDBN options.
| SMSF FUND NAME | Parker Family Superannuation Fund |
| TRUSTEE | Parker Super Pty Ltd |
| MEMBER NAME | Thomas J. Parker |
| MEMBER ADDRESS | 42 Harbour View Drive, Mosman NSW 2088 |
| NOMINATION DATE | 28 June 2026 |
| NOMINATION TYPE | Non-lapsing (does not expire) |
I, Thomas J. Parker, being a member of Parker Family Superannuation Fund, hereby nominate the following person(s) as my beneficiaries to receive my death benefit from the Fund upon my death:
| Full Name | Relationship to Member | Allocation (%) |
|---|---|---|
| Catherine A. Parker | Spouse | 60% |
| Liam T. Parker | Child (natural, adopted or step) | 40% |
I confirm that each nominated beneficiary is my dependant within the meaning of the Superannuation Industry (Supervision) Act 1993 (Cth) ("SISA") — being my spouse, child, financial dependant, or a person in an interdependency relationship with me — or my legal personal representative. The total of all allocations equals 100%.
I, Thomas J. Parker, declare that:
- I am a member of Parker Family Superannuation Fund and I am entitled to make a binding death benefit nomination under the Fund's trust deed and the SISA.
- Each nominated beneficiary is my dependant or legal personal representative as defined under the SISA.
- I understand the trustee is bound to pay my death benefit in accordance with this Nomination, to the extent permitted by the SISA and the Fund's trust deed.
- I have signed this Nomination in the presence of two independent witnesses, each of whom is not a nominated beneficiary and who has attained 18 years of age.
- Revocation: This Nomination hereby revokes all prior binding death benefit nominations I have made in respect of the Fund.
- Non-lapsing: I request this Nomination be treated as non-lapsing under section 59(1A) of the SISA. I understand it will remain effective until I revoke or replace it in writing, subject to the Fund trust deed expressly permitting non-lapsing nominations.
Signed this 28 June 2026.
Each witness confirms that:
- They witnessed the member's signature on this Nomination on the date shown above;
- They are not a nominated beneficiary under this Nomination;
- They have attained 18 years of age; and
- They signed this form in the presence of the member.
Witness 1: James R. Brown, 15 Pacific Highway, Gordon NSW 2072
Witness 2: Sarah M. Wilson, 8 Cremorne Road, Cremorne NSW 2090
This Nomination is made as a non-lapsing binding death benefit nomination pursuant to section 59(1A) of the SISA (trust deed Clause 12.4).
- This Nomination does not lapse under the SIS Regulations and remains in full force until revoked or replaced in writing by the member.
- The Fund trustee, Parker Super Pty Ltd, confirms that the Fund trust deed expressly authorises non-lapsing binding death benefit nominations.
- Non-lapsing effective date: 28 June 2026.
I, Margaret T. Chen, on behalf of Parker Super Pty Ltd as trustee of Parker Family Superannuation Fund, hereby acknowledge receipt of this Binding Death Benefit Nomination from Thomas J. Parker, delivered in person on 28 June 2026.
The trustee will retain this Nomination on the Fund's records and will act in accordance with its terms upon the death of the member, subject to the requirements of the SISA and the Fund's trust deed.
What Is a Binding Death Benefit Nomination?
Your Australian superannuation benefit does not automatically form part of your estate. When you die, the trustee of your superannuation fund has discretion to pay the death benefit to any dependant (or your legal personal representative) unless you have made a binding death benefit nomination. Under section 59 of the Superannuation Industry (Supervision) Act 1993 (Cth), a member can make a nomination that binds the trustee to pay benefits to the specified recipients in the specified proportions.
A standard binding death benefit nomination under regulation 6.17A of the Superannuation Industry (Supervision) Regulations 1994 (Cth) lapses after three years unless renewed. The recipients must be "dependants" under the SIS Act — meaning a spouse, a child of any age, a person in an interdependency relationship, or a person financially dependent on the member. Alternatively, the entire benefit can be directed to the member's legal personal representative (LPR) for distribution through the estate.
SMSFs have greater flexibility than retail and industry funds. An SMSF trust deed may permit a "non-lapsing" BDBN under section 59(1A) of the SISA — one that does not expire after three years. This is one of the key advantages of an SMSF for Australian estate planning. However, the non-lapsing BDBN must be expressly authorised by the SMSF deed, and its validity depends on the deed clause in force at the time of the member's death.
What's Covered in This Template
Our Australian BDBN template covers every requirement for a valid binding death benefit nomination.
Fund and Trustee Details
SMSF name, trustee name, and member details.
Member Identification
Member's full name, address, and date of membership for identification.
Beneficiary Nominations
Names, relationships, and percentage allocations for each nominated dependant or the LPR.
Nomination Type
Lapsing (expires 3 years from date, complying with SIS Reg 6.17A) or non-lapsing (if trust deed authorises).
Revocation of Prior Nominations
Statement revoking any previous death benefit nominations made by the member.
Relationship Declarations
Member's declaration that each beneficiary qualifies as a dependant under the SIS Act.
Witness Requirements
Attestation by two adult witnesses who are not nominated beneficiaries — as required for a valid BDBN.
Non-Lapsing Deed Confirmation
For non-lapsing BDBNs: confirmation of the trust deed clause authorising the non-lapsing nomination.
Trustee Acknowledgement
Expert: trustee receipt and filing confirmation with the date of acknowledgement.
Expiry and Renewal Notice
Reminder of the three-year lapsing rule and the renewal procedure for lapsing nominations.
How to Create a Binding Death Benefit Nomination
Follow these steps to prepare a valid Australian BDBN for your SMSF.
- 1
Check Your SMSF Deed
Confirm that your SMSF trust deed permits binding nominations. Check whether it authorises non-lapsing BDBNs if that is your preference.
- 2
Identify Your Beneficiaries
List each nominee (spouse, child, or LPR) with their full name, relationship to you, and the percentage of the death benefit they are to receive (totalling 100%).
- 3
Choose Lapsing or Non-Lapsing
Select a standard 3-year lapsing BDBN (complies with SIS Reg 6.17A) or a non-lapsing BDBN (if your deed permits under section 59(1A) of the SISA).
- 4
Sign Before Two Witnesses
Sign the nomination in the presence of two adult witnesses who are not nominees. Witnesses must sign on the same day as you.
- 5
Deliver to the Trustee
Provide the signed BDBN to the SMSF trustee. The trustee should file it and acknowledge receipt. Retain a copy in your personal records.
Legal Considerations
A BDBN that fails to meet formal requirements may be invalid — leaving the trustee with full discretion to pay death benefits.
This template is for informational purposes only and does not constitute legal or financial advice. BDBNs involve complex Australian superannuation and estate planning law. Seek advice from a qualified Australian solicitor and licensed financial adviser.
Reviewed for Australian law
Formal Requirements for Validity
Under regulation 6.17A of the SIS Regulations, a valid lapsing BDBN must: (a) be in writing; (b) specify the percentage of the benefit to go to each nominee (total 100%); (c) be signed and dated by the member in the presence of two adult witnesses who are not nominees; and (d) each witness must also sign the nomination. A BDBN that does not meet these requirements is not binding — the trustee may treat it as a non-binding nomination and exercise discretion.
Who Can Be a Beneficiary
Under section 10 of the SISA, only SIS "dependants" can receive superannuation death benefits directly from a fund. Dependants include: a spouse or de facto partner; a child (of any age) of the member; a person with whom the member has an interdependency relationship; and a person financially dependent on the member at the time of death. If the nominated person does not qualify as a dependant at death, the nomination for that person lapses. The legal personal representative (LPR) can also be nominated, allowing the benefit to flow through the member's estate.
Tax on Superannuation Death Benefits
Australian superannuation death benefits are split into a "tax-free component" and a "taxable component" under the ITAA 1997. Benefits paid to a "tax dependant" (spouse, minor child, financially dependent person, or person in an interdependency relationship) are generally tax-free. Benefits paid to non-tax-dependants (such as adult independent children) through the LPR are subject to a tax of up to 17% (including Medicare levy) on the taxable component. The tax treatment is a significant factor in Australian estate planning for superannuation.
Non-Lapsing BDBNs and SMSF Deed Requirements
Section 59(1A) of the SISA permits non-lapsing BDBNs only if the SMSF trust deed expressly authorises them. Not all SMSF deeds contain this authorisation — older Australian SMSF deeds drafted before section 59(1A) was enacted may not permit non-lapsing nominations. The validity of a non-lapsing BDBN depends on the deed as it stands at the date of the member's death, not the date the nomination was made. If the deed has been amended since the nomination, legal advice is required to confirm the nomination is still operative.
Frequently Asked Questions
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