Super Alert – 12 June 2026: handling of death benefit claims, Paid Parental leave data-matching program, classification of downsizer contributions, ban on adverse genetic testing

Welcome to the weekly KHQ Super Alert. This week, ASIC released a progress report on the handling of death benefit claims by trustees. The ATO published guidance in relation to its Paid Parental Leave data-matching program for superannuation contributions and the classification of downsizer contributions. Treasury released draft regulations to support the impending ban on adverse genetic testing for life insurers. Meanwhile, APRA published a speech delivered to the Senate Economics Legislation Committee.

ASIC – Report on progress by superannuation trustees in their handling of death benefit claims released

On 10 June 2026, ASIC released Report 831 Delivering on death benefits: Have super trustees stepped up? The report follows ASIC’s previous Report 806 Taking ownership of death benefits: How trustees can deliver outcomes Australians deserve and ‘provides an update on the reported progress by superannuation trustees in improving their handling of death benefit claims’.

The report highlighted that, of the 45 trustees subject to the review, many have made positive improvements in their processes, while others have lagged, failing to implement basic process improvements in response to ASIC’s previous recommendations.

ASIC’s key findings in the report included:

• ‘evidence of modest progress in timeframes for processing claims, but more work is needed’;
• ‘attention should be given to more effectively [measuring] claim handling performance’;
• ‘trustees should continue to consider how they can streamline the processing of low-value and low-risk claims’;
• ‘trustees should do more to encourage members to make valid binding nominations’;
• ‘support for First Nations members and claimants should be further enhanced’; and
• although claims volumes are rising, there was a 53% fall in internal dispute resolution complaints about death benefit claim delays from early 2024 to late 2025.

In its report, ASIC signalled that it will continue to monitor trustees’ progress in improving death benefit claims handling practices.

Click here and here  for details.

ATO – Guidance on Paid Parental Leave superannuation contribution data-matching program protocol released

On 9 June 2026, the ATO updated its website information to provide guidance on how it intends to use a data-matching program to support the Paid Parental Leave Superannuation Contribution Scheme, a government funded superannuation payment made on parental leave pay by Services Australia to eligible individuals from 1 July 2025.

Under its program, the ATO will acquire personal identifying data from Services Australia for individuals from the 2025-26 period through to 2027-28.

The ATO’s website now includes the following guidance:

• paid parental leave contribution program: how the data-matching program supports the Paid Parental Leave Superannuation Contribution Scheme;
• parental leave pay data: how the ATO collects data under the program;
• notifying the public of data-matching program: how the ATO notifies the public about the program;
• our lawful role: setting out the ATO’s legislative functions and policies and procedures for the program;
• why we undertake data-matching: setting out why the ATO conducts the program and the costs and benefits of data-matching;
• how we undertake data-matching: setting out the systems and processes used by the ATO in data-matching activities; and
• data quality: setting out how the ATO assures data is fit for use.

The data items being acquired will include:

• ‘identification details (Tax File Number (TFN), Centrelink Reference Number (CRN), given name/s and surname, maiden surname, other names, date of birth, residential address)’; and
• ‘transaction details (Parental Leave Pay gross amount, first payment date, financial year)’.

Click here and here for details.

Treasury – Draft regulations supporting ban on adverse genetic testing results in life insurance opened for consultation

On 5 June 2026, Treasury released draft regulations ahead of the impending ban on the use of adverse genetic testing results in life insurance. The draft regulations are intended to provide greater clarity on how the ban will operate by:

• ‘providing certainty to consumers, health practitioners, and insurers on how the ban applies, including in relation to specified genetic predispositions’; and
• ‘strengthening compliance and enforcement by confirming that strict liability offences and civil penalty provisions will be captured under the infringement notice scheme in the Insurance Contracts Act 1984’.
• If passed, the regulations will commence on the same day as the ban under the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026, being 8 October 2026.

The consultation period closes on 26 June 2026.

Click here or here for details.

ATO – Reminder on reporting of downsizer superannuation contributions released

On 5 June 2026, the ATO published a brief reminder that funds must have processes in place to correctly classify downsizer superannuation contributions in the Member Account Transaction Service (MATS). The reminder highlighted that eligible downsizer contributions must be reported as proceeds from primary residence disposal, not as personal contributions.

The ATO noted that incorrect reporting may result in negative impacts to members’ contribution caps.

Click here for details.

APRA – Opening statement to the Senate Economics Legislation Committee published

On 5 June 2026, APRA published Chair John Lonsdale’s Opening Statement to the Senate Economics Legislation Committee. The Opening Statement covered a range of general topics and outlooks that will impact APRA-regulated entities.

Key points for superannuation trustees include:

• APRA is sharpening its supervisory intensity by setting ‘clearer expectations on risk management, targeted supervisory reviews, and, where necessary, [taking] enforcement action to hold entities to account for failing to meet prudential standards’;
• ‘APRA has increased capital overlays and imposed licence conditions on several entities since it last appeared before [the] committee‘; and
• APRA ‘will continue to pursue remediation and take further action where trustees fail to meet prudential requirements and improve member outcomes as directed. [APRA is] also considering whether further enhancements to the prudential framework are needed’.

Click here for details.

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