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Super scams First Guardian, Shield cause compensation cost blowout

ABC Australia · Jul 2, 2026, 2:00 AM

Key takeaways

  • The nest eggs of workers are diminishing because of unpaid super.
  • New CSLR figures reveal that the government needs to raise $190.3 million to fund all financial advice claims.
  • PromotionTop StoriesAustralians caught between homelessness and the lawTopic:Homelessness

Why this matters: an international story with cross-border implications worth tracking.

The nest eggs of workers are diminishing because of unpaid super. (Unsplash: Annie Spratt)

Link copied Share Share article. A government scheme that provides compensation for victims of financial misconduct, including to Australians who lost their retirement savings in the First Guardian and Shield super disasters, faces a funding shortfall of $170 million.

The Compensation Scheme of Last Resort (CSLR) was introduced after the banking royal commission and is supposed to help consumers recover money when a financial firm has become insolvent or refuses to pay determinations made by the Australian Financial Complaints Authority (AFCA).

Article preview — originally published by ABC Australia. Full story at the source.
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