QUESTIONS WITHOUT NOTICE
Dr MULINO (Fraser—Assistant Treasurer and Minister for Financial Services) (14:48): I thank the member for Werriwa for her question, and I acknowledge that she has been a champion of the super system throughout her time in this place. She's advocated for lifting the SG rate for payday super and for closing the gender gap. The collapse of Shield and First Guardian was devastating for thousands of Australians who lost retirement savings that they had spent decades building.
These were not reckless investors taking speculative bets. In many cases they were ordinary Australians who believed they were making sensible decisions about their retirement but instead found themselves exposed to serious misconduct, poor governance and harmful sales practices. Earlier today, this government announced a comprehensive package of reforms to strengthen the security, stability and integrity of our superannuation system and to better protect the promise of a dignified retirement for future generations.
We announced a major crackdown on harmful lead-generation practices, Shield and First Guardian exposed an ecosystem where consumers could click on an online advertisement, have their data harvested and sold, receive a call from an unlicensed lead generator and then be funnelled towards risky investment products. We are banning unlicensed real-time communications about superannuation.
We are tightening anti-hawking laws. We are strengthening penalties and we are targeting the data harvesting and broking practices that sit at the front end of these harmful business models. The objective is simple: stop consumer harm before it occurs and shut down the pathways that bad actors use to gain access to Australians' retirement savings.
The second pillar that I announced today is stronger accountability and compensation arrangements across superannuation platforms. Australians should be able to trust that, if a trustee places a product in front of members, that trustee stands behind it. That's why we're creating a new framework that enables ASIC to direct trustees to commence remediation processes where there are credible concerns that they have failed in their obligations.
Where trustee failures have contributed to losses, members should have access to clear and practical pathways to compensation. We are also giving APRA powers to ensure trustees offering higher risk products have the financial capability to meet those responsibilities and that they have the backing to stand behind their obligations. These reforms will provide compensation closer to the source of failure.
The third pillar is improving access to safe, affordable and reliable financial advice. As our superannuation system matures, Australians increasingly need help navigating complex retirement decisions. We're progressing long-awaited financial advice reforms.
Taken together, these reforms address the lessons of Shield and First Guardian, strengthen consumer protections right across the system, improve accountability and expand access to advice. They put superannuation members first and help ensure Australians can have confidence in their retirement systems. (Time expired)