ATO ID 2011/77 – Payment of Death Benefit to Former Stepchild

The classification of a step-child has been an area of misunderstanding for some time. Effectively, this ATO ID confirms that where the legal marriage of the natural parent and the step parent has ended due to divorce, the step-child relationship also ends.
This is relevant with respect to the classification of a dependent under the SISA and the ability to pay a benefit directly to the beneficiary. A step-child is considered to be a child of a member, and could therefore qualify to receive a payment directly out of the superannuation fund. However, where that relationship no longer exists as the marriage of the member and the step-child’s natural parent has ended, that definition is no longer relevant.