Super’s Next Frontier Is Inclusion
Australia’s superannuation system is designed to deliver dignity in retirement. For many First Nations Australians, it is not yet doing that. As a new report from the Super Members Council, developed with the First Nations Foundation, identifies structural barriers that continue to limit access, outcomes and trust in the system (Super Members Council, 2026).
The data is clear. Super coverage among First Nations workers reached 78% in 2022, compared to 92% across the broader workforce. Median balances sit around $28,000, less than half of the ~$70,000 held by non-Indigenous Australians (Super Members Council, 2026). Lower incomes and insecure work compound across decades into materially different retirement outcomes. This gap reflects a system-level design outcome.
The system is working as designed
Super reflects the structure of the labour market. When income is lower and employment is less stable, contributions are lower and compounding has less time and scale to work. Over time, that translates directly into smaller balances.
We have already seen how structural changes, like paying super more frequently, can improve long-term outcomes by giving contributions more time to compound . The same mechanism applies here. When barriers reduce contributions or delay access, the long-term impact is embedded early.
The report identifies where those barriers sit: identification requirements, service accessibility, and systems that do not recognise cultural realities such as kinship structures (Super Members Council, 2026). Super is a rules-based system. Rules determine outcomes.
Where policy meets lived experience
One of the most consequential issues raised is the lack of legal recognition for First Nations kinship structures in super law. Death benefit rules are built around narrow definitions of family. For many First Nations communities, caregiving and responsibility extend beyond those definitions. When the law does not recognise those relationships, it restricts who can receive benefits and how wealth transfers across generations.
The proposed reforms are specific. That is to recognise kinship structures in legislation, enable culturally aligned beneficiary nominations, and improve guidance on identification and service standards (Super Members Council, 2026).
Cultural capability becomes financial infrastructure
The report outlines six better practice principles for super funds that aligns with a broader pattern across financial services.
Leadership accountability sets the tone. When boards and executives embed cultural inclusion into strategy, resourcing and performance metrics, it becomes part of how decisions are made, not an optional overlay.
Frontline flexibility determines how members experience the system day to day. Allowing staff discretion to navigate non-standard identification, documentation or personal circumstances improves access in moments that matter.
Cultural competency at board and executive level ensures decisions reflect lived realities. Training and representation at this level influence product design, communication and risk management across the organisation.
Modern identification practices reduce friction at entry points. Rigid, one-size-fits-all processes can exclude members without conventional documentation. Flexible, culturally informed approaches improve access and continuity.
Deep engagement with First Nations communities and organisations strengthens trust and relevance. Co-designing services and communication ensures the system reflects community structures, priorities and expectations.
Coordinated data and information sharing across funds, regulators and policymakers supports consistency. It improves service delivery, reduces duplication and enables more informed system-wide decisions.
Why this matters for investors and the system
Super is one of Australia’s largest pools of capital, shaping economic participation, asset ownership, and long-term financial security.When parts of the population are underserved, the system delivers uneven outcomes at scale. So addressing these gaps strengthens system integrity, improves participation, increases balances, and supports broader economic inclusion.
This sits alongside other reforms underway, including payday super and super on paid parental leave, both designed to better align the system with real-world work patterns. That is how structural change compounds into long-term impact.
References
Leadership and Governance Collective (2025). Aligning Culture with Strategy: Insights from 1,188 Aotearoa NZ CEOs. https://leadandgovern.nz/research-outputs/
Super Members Council (2026). A fair retirement: Removing barriers in super for First Nations peoples. https://smcaustralia.com/reports/a-fair-retirement-removing-barriers-in-super-for-first-nations-peoples/
