What is a binding death benefit nomination (BDBN)?

A binding death benefit nomination (BDBN) is a legal document that directs your super fund to pay your death benefits to specific people or entities. Unlike non-binding nominations (which trustees can override), a BDBN must be followed exactly as written—no guesswork, no discretion, no surprises.

Why it matters

Without a BDBN, your super fund trustee decides who gets the money based on their interpretation of your relationships and financial dependencies.

This can lead to:

• Delays in distributing funds.
• Family disputes and legal costs.
• Unequal or unintended outcomes Unnecessary tax for your beneficiaries.
• With a BDBN in place, your wishes are clear, enforceable, and protected.

How to put a BDBN in place

1. Check your super fund’s rules – Not all funds allow BDBNs, or they may have specific requirements.
2. Get the right form – This is usually available from your super fund’s website.
3. Nominate your beneficiaries – Family members, dependents, your estate, or even a trust.
4. Specify the allocation – Exact percentages or amounts per beneficiary.
5. Meet legal requirements – Usually two adult witnesses who aren’t beneficiaries.
6. Submit it – Send the completed form to your fund and keep a copy.
7. Get confirmation – Your fund should formally confirm the nomination is binding.
8. Review it regularly – Life changes (marriage, divorce, children) mean your BDBN should change too.

The benefits of a BDBN

• Certainty: You control who receives your super—no surprises.
• Speed: Your beneficiaries receive funds quickly, without unnecessary red tape.
• Tax efficiency: Directing benefits to tax-dependent beneficiaries may reduce tax.
• Avoid disputes: Minimise conflict and protect family harmony.

Pro tip from Success Tax Professionals

Not all BDBNs last forever. Many expire after 3 years unless renewed. Others are non-lapsing, depending on the fund. We recommend reviewing your BDBN every 12–24 months or whenever a major life event occurs.