Here’s what’s happening with redundancy funds - and why Protect supports the change

In June 2025, the Australian Securities and Investments Commission (ASIC) put forward a proposal to consider formally regulating redundancy funds like ours. It’s all outlined in Consultation Paper 384 - Employee Redundancy Funds, which looks at how these funds could be managed under the Corporations Act from 1 April 2026.

The short version? Redundancy funds have been operated with an exemption from a part of the Corporations Act . ASIC is now consulting with industry to determine the way forward.

We’re putting in a submission

The deadline for public submissions is 22 July however Protect has been granted an extension. We’ll be lodging our formal response by 5 August 2025. We’re well underway and fully committed to putting our voice forward.

Regulation makes sense, we’ve said so for years

Protect has backed proper oversight and good governance since 2017, when we took part in a Senate Committee inquiry on worker entitlement funds. We said it again in 2019. Our view hasn’t changed.

Redundancy funds were originally set up to look after workers when employers went bust. Now, funds like ours manage hundreds of millions of dollars for workers across Australia. That’s a big responsibility and it deserves a solid framework to keep things safe, fair and well run.

We’re in a good place already

Changes are not expected to impact how you access your entitlements. We're already operating with a high level of care and accountability:

• Adhere to many of the expected regulatory obligations
• Are financially strong, regularly audited and have robust systems in place
• Publish clear financial overviews to keep members informed

Why this matters

Stronger regulation helps to keep redundancy funds safe and trustworthy, ensures all funds play by the same rules, and protects the entitlements of the working people these funds are built for.

It’s another way we protect what matters - your entitlements, your money and your peace of mind.