Super Consumers welcomes Minister’s strong steps to protect people and stabilise the compensation scheme

Super Consumers Australia has welcomed the announcement by Minister for Financial Services, Dr Daniel Mulino, of a suite of reforms to strengthen consumer protections and bolster the Compensation Scheme of Last Resort (CSLR) for victims of financial misconduct.

“We strongly support the Government’s commitment to protecting Australians from being misled or ripped off by financial operators,” said Xavier O’Halloran, CEO of Super Consumers Australia.

“The reforms outlined today are vital to restoring people’s trust in the financial services sector, particularly for those who left out of pocket through no fault of their own.”

Super Consumers also welcomed the Minister’s roundtable on the CSLR and the special $47.3 million levy for 2025–26 to address the scheme’s current shortfall.

“Protecting the CSLR isn’t just about who pays to compensate the people hurt by bad industry practices. It’s about ensuring the system holds bad actors to account,” Mr O’Halloran said.

“Today’s announcement signals that the Government is taking the long view, working with industry and advocates to make sure the CSLR is sustainable, fair, and fit for purpose.”

“We particularly welcome the principle to spread the cost of the CSLR across the broader retail-facing finance sector and we will engage with the detail as it emerges. It’s a sensible approach that protects Australians and avoids placing the full burden on any one group.”

Mr O’Halloran said the failures of cases like Shield and First Guardian show the urgent need to tighten protections across the super and investment landscape.

“Consumers should be able to trust that switching funds, especially when encouraged to do so, won’t land them in higher risk, low-value products. Today’s steps are a clear recognition of that risk, and a clear shift toward better protections,” he said.

Super Consumers will continue working with government and regulators in 2026 to ensure post-implementation CSLR reforms deliver long-term accountability and uphold consumer rights.