If you’re one of the thousands of Australians who lost their superannuation savings in the $1.1 billion collapse of two major investment funds, the clock is ticking. The deadline to file a formal complaint is fast approaching, and if you don’t act soon, you could miss out on compensation altogether. Here’s what you need to know before it’s too late.
The Collapse of Shield Master Fund and First Guardian Master Fund
In 2024 and 2025, two Australian investment funds, Shield Master Fund and First Guardian Master Fund, collapsed, wiping out millions of dollars in superannuation savings for workers. Around 11,000 Australians were affected, but fewer than 2,000 people have formally registered complaints with the Australian Financial Complaints Authority (AFCA).
The funds’ collapse was shocking, and many workers didn’t even realize their savings were at risk, let alone lost. A combination of bad advice, poor management, and high-risk investments led to the massive collapse, leaving hardworking Aussies struggling to make sense of what went wrong.
The Clock is Ticking
Unfortunately, time is running out. Victims have until mid-February 2026 to lodge their complaints and seek compensation. ASIC, the corporate watchdog, will begin contacting affected workers today to ensure they’re aware of their rights. However, many people might assume that someone else has already filed a complaint for them, or they simply might not know they’re eligible for compensation. That’s why it’s critical to take action now.
The government and regulatory bodies like ASIC are working hard to get the word out, but it’s ultimately up to those impacted to register their complaints. Missing the deadline could mean no chance at all to recover any of those lost super savings, explains Yahoo Finance.
The Unfair Burden on Ordinary Super Fund Members
While the government scrambles to handle the fallout, the superannuation industry is also speaking out. Mary Delahunty, the CEO of the Association of Superannuation Funds of Australia (ASFA), has called the government’s approach “fundamentally unfair.” Why? Because regular super fund members—the very people who didn’t lose money in the collapse—are being asked to help compensate those who did.
Delahunty argues that it’s not right for ordinary Australians to fund a compensation scheme that many will never use. This has sparked a broader conversation about fairness and accountability in the superannuation sector, and whether the Compensation Scheme of Last Resort (CSLR) is sustainable in the long run. Some workers might have to rely on this scheme to recover their lost savings, but it’s clear that the system needs a major overhaul. R
ight now, only insolvent entities qualify for compensation, making it even harder for victims of fund collapses to see any money returned.
What’s Next for Superannuation Reform?
The government is already working on regulatory reforms to prevent a repeat of this situation. Assistant Treasurer Daniel Mulino is set to release a series of discussion papers later this month. These papers will outline potential reforms to the CSLR, as well as changes to how high-risk investments are managed within superannuation funds. The hope is to protect workers from future disasters and ensure that superannuation savings remain secure.
While the road to reform may be slow, it’s clear that changes are necessary. Whether these reforms will go far enough to prevent future collapses remains to be seen. For now, the priority is making sure that the victims of the Shield Master Fund and First Guardian Master Fund collapse have a fair chance at compensation.
What You Need to Do
If you were one of the 11,000 Australians affected by the collapse, make sure you lodge a formal complaint before the deadline. Don’t assume someone else has done it for you—check the status of your claim and make sure it’s in. Time is running out, and you don’t want to miss out on getting back what’s rightfully yours.
