Pat Conaghan MP

Senator for New South Wales

Shadow Minister for Financial Services

Shadow Assistant Treasurer

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Senator Dave Sharma

Senator for New South Wales

Shadow Assistant Minister for Competition, Charities, and Treasury

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JOINT MEDIA RELEASE

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LABOR SAT ON WARNINGS AS $1.2 BILLION SUPER SCANDAL EXPLODED

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The Government has been caught flat-footed in the wake of the First Guardian and Shield collapse, with Senate estimates today revealing the Treasurer ignored repeated warnings while 12,000 Australians’ retirement savings were put at risk.

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Treasury officials admitted they had provided the Government at least seven separate pieces of formal written advice on gaps in the regulation of managed investment schemes — the same structures used by First Guardian and Shield — as well as long-standing warnings about weaknesses in the anti-hawking framework.

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“Despite all these warnings, Treasury couldn’t name a single regulatory or legislative change the Government has made in response,” Mr Conaghan said.

“The Government was warned. They failed to act. And now Australians are staring down up to $1.2 billion in lost super.”

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The Assistant Treasurer, Daniel Mulino, had previous said on 30 October 2025 that he hasn’t ignored any warnings. Whether he or other Ministers in his Government ignored them is irrelevant – the reality is they were told about this issue many times but failed to act.

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Estimates also confirmed Treasury has now provided its advice on the potential Part 23 support mechanism for victims. This is a mechanism that could provide relief for thousands of victims — and advice is sitting squarely with the Assistant Treasurer – who must request further advice from APRA.

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“This advice is on the Minister’s desk. Victims have waited long enough. The Government can’t keep hiding,” Shadow Assistant Treasurer Pat Conaghan said.

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Senator Dave Sharma said the revelations pointed to a systemic failure of ministerial oversight.

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“These are everyday Australians who saved for retirement and trusted the system,” Senator Sharma said.

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“Labor ignored clear warnings, dragged its feet, and left Australians exposed to the biggest super failure in our history.”

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Estimates also revealed that Treasurer Jim Chalmers is still operating ASIC under the Statement of Expectations set out by the Hon Josh Frydenberg, the former Treasurer and Deputy Leader of the Liberal Party – who led the Coalition Government’s historic and comprehensive response to the Financial Services Royal Commission.

After hearing the Opposition’s questions about the lack of expectations for ASIC, the Government advised their new plan would be to release an updated statement once the replacement chair for ASIC is in place.

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“After three years in office and the largest super fraud failure on his watch, the Treasurer still hasn’t bothered to update ASIC’s mandate,” Mr Conaghan said.

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“It is extraordinary negligence — and a damning indictment of the Government’s priorities.”

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The Coalition will continue pressing the Government for transparency, accountability, and the timely support Australians deserve.

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ENDS