First Nations Foundation (FNF) has urged non-Indigenous financial institutions to help address systemic barriers that prevent Aboriginal and Torres Strait Islander people from achieving economic equality.
Amid Reconciliation Week, FNF chief executive Phil Usher said the 2024 theme, ‘Now More Than Ever,’ is powerful and serves as a reminder for both non-Indigenous-led and Indigenous-led firms that coming together makes the path toward economic reconciliation more achievable.
“The main part of reconciliation is talking about how we work with non-Indigenous people. Rather than us just pushing an Indigenous perspective, I think including support from non-Indigenous organisations in the financial sector is required,” he said.
“Indigenous people need non-Indigenous people in the sector to overcome systemic issues.”
Following the 2024 First Nations Super Summit led by FNF in February, Usher recognised the influence of financial institutions working with community members to address issues preventing Aboriginal and Torres Strait Islander people from achieving financial equality.
“While addressing the six priorities identified at the summit that aim to elevate super standards for First Nations people within our Indigenous Superannuation Working Groups, we have uncovered longstanding legislation intertwined with these objectives that significantly impact Aboriginal and Torres Strait Islander people,” Usher said.
One longstanding issue highlighted at the summit by Financial Counselling Australia coordinator of financial capability, Lynda Edwards, is the Law Reform Submission titled ‘Deceased Estates: Access to ATO-Held Information about the Existence of a Superannuation Account.
The submission, currently under review by assistant treasurer and minister for financial services Stephen Jones, underscores the challenges kin face in locating a deceased family member’s superannuation.
Currently, the Australian Taxation Office (ATO) holds information about all Australians’ superannuation accounts but will only share this information with a deceased person’s legal personal representative.
This creates a severe problem when the deceased person lacks a legal personal representative, a situation that frequently occurs when a First Nations person passes away.
The submission states that this issue has a significant and adverse effect on many First Nations people, who are likely missing out on superannuation funds and the associated insurance to which they are entitled.
“The ask is for the law to be changed to allow the ATO to disclose the name of any superannuation fund to a deceased person’s relative, rather than the specifics of the amount or the account number,” Usher explained.
“Often, when First Nations people die, they do not leave a will, leaving no executor to manage the estate. This not only complicates matters but also imposes significant financial burdens that disproportionately affect Aboriginal and Torres Strait Islanders.”
Financial counsellors work hard to help First Nations clients who are the next of kin of someone who passed away without a will. However, without an executor or administrator for the estate, these clients can’t get information from the ATO about any superannuation accounts the deceased had.
Lacking this crucial information, they miss the opportunity to apply for the superannuation account balance or claim any associated death insurance policies that might exist.
“This particular issue is just the tip of the iceberg, yet it significantly affects many Aboriginal and Torres Strait Islander people by disconnecting them from the superannuation to which they are entitled, due to legal frameworks that fail to be inclusive,” said Usher.
Usher emphasised that this is why FNF is urging more non-Indigenous organisations to get involved.
“Reflecting on this year’s Reconciliation Week theme, I encourage non-Indigenous organisations to engage with these challenges and help us identify practical solutions that will level the economic playing field for First Nations People. Your support is needed, Now More Than Ever,” he concluded.
