The Albanese Government is today announcing a package of reforms to strengthen consumer protections and build the resilience of the Australian superannuation and financial system.
We are focused on ensuring that Australians are protected from conduct that can slash savings and reduce financial security in retirement.
The collapses of the Shield and First Guardian Master Funds exposed profound risks and vulnerabilities in parts of the financial system, impacting almost 12,000 people and around $1 billion in retirement savings.
Broader losses within the Self‑Managed Superannuation System, which have placed significant strain on the Compensation Scheme of Last Resort, have also highlighted the poor member outcomes which arise from insufficient consumer protection.
These losses reveal how consumer harm can emerge across the system, where poor conduct at one point in the chain can be amplified as consumers move between lead generators, advisers, trustees, investment products and compensation arrangements.
The package of reforms we are announcing today will improve consumer protections and ensure that the superannuation system continues to deliver on its purpose.
The reforms in this package will:
- Make the financial system safer by strengthening protections across the superannuation, advice and investment ecosystem.
- Improve access to safe, secure financial advice and guidance so Australians can navigate an increasingly complex retirement system with greater confidence.
- Place the CSLR on a firmer and fairer footing so it can continue to provide meaningful protection when all other safeguards have failed.
The Government will continue consulting with industry, consumer groups, regulators and other stakeholders to progress legislation implementing this package.
Together, these reforms will help build a financial system that is safer, more resilient and more worthy of the trust Australians place in it.
They deliver on the promise of Labor Governments to strengthen the superannuation system and safeguard it for future generations of Australians.
