ASIC, the government body that oversees financial services, has concluded its consultation process with Australian redundancy funds like Protect, and will apply new rules from 1 September 2026.

ASIC proposed a number of regulation models for consultation.  The option ASIC chose to adopt was also the option Protect was strongly supportive of.  We preferred this because it’s practical and it works for how our industry actually operates – without trying to impose conditions meant for other industries.

We’re all for proper rules

We support sensible, practical regulation. We already run the Fund with strong governance practices, based on our compliance with tax, trust and company law.  These new rules will mainly formalise what we’re already doing, while adding some new reporting obligations and introducing another layer of oversight with ASIC.

Under the new model, funds will need to hold an AFS licence and meet some extra financial and reporting requirements - things like keeping enough cash on hand, reporting on cash flow and having formal risk systems. These are already part of how we operate, so the transition should be smooth.

Redundancy funds will not become Managed Investment Schemes, which is a sensible outcome - MIS rules were designed for retail investment products, not for funds like ours that are based on EBAs.

What does this mean for Workers and Employers?

• Nothing changes for workers or employers
• Your redundancy and severance payments stay the same
• How you claim doesn’t change
• Employer contribution rules don’t change

The new framework mainly adds transparency and extra protection so members know the Fund is solid, well run and financially secure.

What’s next?

ASIC will release more details early next year. For now, the direction is clear and the 2026 timeline gives everyone certainty as we move into the new framework.