Australian superannauation fund fined $15.34m for delays

The penalty exceeds United Super's reported revenue in the 2024 financial year.

Australia’s largest superannuation fund trustees have been ordered to pay $15.34m (A$23.5m) in penalties related to delays in processing insurance claims.

This follows admissions from Construction and Building Unions Superannuation Fund (Cbus) of delays in processing death benefits and total and permanent disability (TPD) insurance claims, which impacted over 7,000 Australians in distressing situations, the Australian Securities and Investment Commission (ASIC) said in a statement on 25 November 2025.

The penalty, imposed against United Super Pty Ltd— the trustee of the Cbus— exceeds the $12.08m (A$18.5m) revenue that United Super declared in the 2024 financial year.

The penalties are separate from Cbus’ own remediation program to pay approximately $20.89m (A$32m) in compensation to 7,402 affected claimants and members for lost earnings and wrongfully charged fees, ASIC said.

The Federal Court found that between 27 March 2023 and 1 May 2023, as a percentage of all open claims, between 48% and 56% of all death claims (numbering between 438 and 479 claims) had been open for more than 365 days.

Over the same period, between 38% and 43% of all TPD claims (numbering between 391 and 409 claims) had been open for more than 365 days, the court found.

(US$1 = A$1.53; as of 27 November 2025, Morningstar via Google)