Workers Can’t Afford Regulatory Failure

Submission by the Australian Council of Trade Unions to Treasury’s Consultation Paper, Enhancing oversight and governance of managed investment schemes, February 2026

The Australian trade union movement led the campaign to establish superannuation to provide workers with dignity in retirement. Through industrial action, bargaining and advocacy at both the Australian Conciliation and Arbitration Commission and the High Court, the union movement won the introduction of superannuation for many workers. The ACTU and affiliates were instrumental to the creation of the Accord which introduced universal superannuation through the legislation of the Superannuation Guarantee (SG) by the Keating Labor Government.

In the 30 years since the establishment of universal, employer-paid, vested and portable superannuation, the ACTU and affiliates remain dedicated to ensuring that all workers live and retire in dignity. To do so, unions remain active contributors to the superannuation system. Member-representative trustee directors, nominated by the ACTU and affiliates, ensure that members’ interests are the priority of superannuation funds and that these funds return all profits generated to members.

The collapse of Managed Investment Schemes (MIS) Shield Master Fund and First Guardian Master Fund destroyed $1 billion in Australians’ savings and demonstrated catastrophic failures in Australia’s regulatory architecture. These predatory products were able to be sold to workers through Australian Prudential Regulation Authority (APRA)-regulated Trustees despite APRA having extensive data showing significant historic, current and emerging risks.

Workers cannot afford a regulator which has detailed information yet fails to intervene to safeguard their retirement savings. Workers deserve a regulator which prioritises member outcomes through diligently overseeing the areas of greatest risk to members.

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