The Albanese Government is acting to strengthen consumer protections and improve stability and confidence in the superannuation and financial services sectors which are critical to investment and productivity.
We need to ensure consumers continue to have trust in the superannuation system to help them provide for their own retirement.
The alleged practices employed in the cases of the Shield and First Guardian Master Funds have highlighted the need for reform.
Those include high pressure lead generation pushing people to switch their retirement savings into higher risk environments and products such as low‑quality managed investment schemes.
We are considering targeted reforms to deal with the issues across the whole ecosystem and will consult on these early in 2026.
We want to ensure consumers can be properly informed before making the decision to switch what are now large sums of superannuation savings, and more protected when they switch.
Switching to a better performing superannuation fund can significantly improve the retirement outcomes for Australians, however, the decision to move requires careful consideration.
Financial collapses have an impact on the industry, with increased pressure on the Compensation Scheme of Last Resort (CSLR).
Supporting consumers includes ensuring the CSLR is there to support them when they need it.
A special levy of $47.3m will apply for the financial year 2025-26 to fund the increased call on the CSLR this year. This will be applied broadly to reduce the burden on any one subsector and to ensure of the sustainability of individual subsectors and the CSLR as whole.
We are acting in partnership with industry and consumer advocates. That is why today I am hosting a roundtable on the CSLR, where we will discuss the special levy and some of options on the table for post‑implementation reform.
We will also be looking at options for professional indemnity insurance, and I will work with Assistant Minister for Productivity, Competition, Charities and Treasury, Andrew Leigh, to consider how the misuse of insolvency processes can allow financial advice firms evade Australian Financial Complaints Authority (AFCA) determinations.
Early in 2026, we will also release an options paper on post‑implementation reform of the CSLR. This will address potential structural and technical changes to the scheme itself to ensure it remains sustainable.
Building trust in the financial system will support the Government's productivity agenda. Defective schemes attract funds that should otherwise support innovation and economic growth. And when financial schemes collapse, investor confidence diminishes alongside. Australians become more cautious about investing and this can tarnish even legitimate, well‑regulated products.
This work will maintain confidence in the Australian financial system, paying dividends for consumers and the economy as well as delivering a stronger superannuation system so Australians can have a dignified retirement.
