The Compensation Scheme of Last Resort (CSLR) has today released the FY2027 initial levy estimate.

The Compensation Scheme of Last Resort (CSLR, the Scheme) has today published its Initial Levy Estimate for FY2027.

With assistance from independent actuaries, and in alignment with the relevant legislation, the Initial Estimate for FY2027 has been calculated at $137.5m.

These funds will facilitate the CSLR processing of 912 claims as outlined in the FY2027 initial estimate.

Source: Initial estimate for the FY2027 levy

Complete details of the FY2027 Initial Levy Estimate are outlined in the Actuarial Report.

As the expected amount for the personal financial advice sub-sector will exceed the $20m sub-sector cap, a revised estimate will be completed in June 2026.

This revised estimate will allow for the CSLR to request a Special Levy for the FY2027 period after 1 July 2026.

“The rate and scale of firm failures aren’t slowing. The number of impacted consumers continues to rise, and the proportionate negative impact caused by a relative few remains significant,” says CSLR CEO, David Berry.

The estimate does not include the impact of Shield and First Guardian.

“Right now, there are too many uncertainties to reliably estimate the potential impact of Shield and First Guardian on the Scheme”, said Mr Berry.

Based on the limited information currently available, the CSLR, alongside its independent actuary, anticipate that the FY2027 revised levy estimate may be higher than the estimate published today.