The Albanese Government is releasing three consultation papers on broad cross‑sector reforms to give consumers greater protection and trust in the superannuation and financial services sectors.
The collapses of the Shield and First Guardian Master Funds, which impacted over 11,000 consumers and more than $1 billion of superannuation funds, have highlighted the need for a comprehensive reform package which responds to the ecosystem of alleged misconduct surrounding these failures.
This includes protecting consumers as they are navigating the superannuation system, tackling high‑pressure sales tactics like lead generation and ensuring the sustainability of the Compensation Scheme of Last Resort.
Options for protecting superannuation members include strengthening superannuation trustee governance standards, creating a safer framework for superannuation switching, restricting or placing greater protections on advice‑fee deductions from superannuation, and requiring Platform trustees to compensate members for certain investment failures on their platforms using trustee capital.
The consultation on lead generation looks at ways to make lead generators more accountable, strengthening the rules around unsolicited selling including an option to ban unlicensed communication to consumers about superannuation, addressing conflicted payment structures that may incentivise misconduct, and disrupting harmful advertising through earlier regulatory intervention.
The paper on the CSLR focuses on options to improve the predictability and structure of funding arrangements, better align the scheme as a mechanism of last resort, and enhance recoveries.
These consultation papers will be released for a 6‑week consultation period concluding by 22 May 2026 and I encourage consumers and industry to provide their feedback. They are available on the Treasury website.
We have already consulted on enhancing oversight and governance of Managed Investment Schemes earlier this year, and on enhancing professional indemnity insurance in responding to compensation claims.
I will convene a second CSLR and consumer protection roundtable in the coming weeks, to hear directly from stakeholders on the reform options.
The Albanese Government will consider the outcomes of these consultations and progress a series of targeted, proportionate reforms which appropriately balance consumer protection, the risk of future collapses and the right of individuals to exercise choice in the superannuation system.