Who counts as a SIS dependant?

Section 10 of the Superannuation Industry (Supervision) Act 1993 (Cth) defines a "dependant" of a member as:

• the member's spouse (including a de facto spouse, same-sex or opposite-sex);
• any child of the member (biological, adopted, step, or a child of the member's spouse);
• any person with whom the member has an interdependency relationship; and
• any other person who is financially dependent on the member at the time of death.

Section 10A adds the definition of an interdependency relationship. Two people have one if all of the following are true:

• they have a close personal relationship;
• they live together;
• one or each of them provides the other with financial support; and
• one or each of them provides the other with domestic support and personal care.

The classic example is an adult child who has moved home to care for an ageing parent. Two friends who share a house and split the bills usually do not qualify — the personal care limb is the one that fails.

A common mistake: assuming your adult, independent, working children can't be beneficiaries. They can — for the purposes of the SIS Act, any biological, adopted or step-child is a dependant regardless of age or financial situation. The tax treatment is different (see below) but the nomination is valid.

• Ex-spouses (once the relationship has ended)
• Parents, siblings, aunts, uncles, cousins — unless financially dependent or in an interdependency relationship
• Friends who don't meet all four interdependency limbs
• Charities
• Trusts and companies

To leave super to someone outside the SIS categories — a sibling, a charity, a lifelong friend — nominate your legal personal representative (your estate) on the BDBN, and use your will to direct the benefit onward. Tax may apply: benefits paid to a non-tax-dependant (very roughly, an adult child who isn't financially dependent) attract up to 17% tax on the taxable component.