Barnaby Joyce erupts as his ex-wife loses $400,000 from their divorce settlement to First Guardian superannuation scandal
Barnaby Joyce has accused the Australian government of failing to support people affected by the collapse of the First Guardian and Shield Master superannuation funds. He said his former wife, Natalie Abberfield, lost $400,000 from their divorce settlement, highlighting the personal impact of a failure that has left thousands facing uncertainty over their retirement savings.
More than 12,000 customers lost savings when the funds collapsed in May 2024, owing about $1.2 billion. Joyce criticised a compensation scheme that faces a $170 million funding shortfall, while the consumer group CHOICE says there has been little accountability despite 14 ongoing court actions involving 31 people. Government reforms to strengthen consumer protections were announced in August.
In short
- Joyce says his former wife lost $400,000 in the fund collapse.
- More than 12,000 people lost savings totalling about $1.2 billion.
- The compensation scheme has a $170 million funding gap.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The case for stronger government support is that people entrusted their retirement savings to regulated superannuation arrangements and may have little ability to recover losses caused by failures in oversight. A compensation shortfall and limited accountability can leave affected savers bearing the cost, so advocates may argue that public funding and tougher protections are needed to restore confidence and prevent similar harm.
The case against
The case for limiting taxpayer-funded compensation is that public money should not automatically cover losses from failed investment products, particularly when responsibility may lie with fund operators or other private actors. Advocates of restraint may argue that compensation should follow clear findings of liability, while reforms and legal action proceed, to protect taxpayers and avoid weakening incentives for careful investment and oversight.
Explained simply
Superannuation is Australia’s system of saving for retirement, with money held in investment funds. First Guardian and Shield Master were funds that collapsed in May 2024, leaving more than 12,000 customers with savings at risk and debts of about $1.2 billion.
The case involves former customers, fund operators and the Australian government, which oversees rules for retirement savings and compensation. Barnaby Joyce is an Australian politician; Natalie Abberfield is his former wife, whose reported loss illustrates how the collapse affected individual savers.
The issue matters because people may depend on superannuation for income in retirement, and losses can be difficult to recover. The compensation scheme’s funding gap and ongoing court cases have raised questions about how affected customers might be repaid and how consumer protections should work.