The Compensation Scheme of Last Resort publishes FY27 revised levy estimate

The Compensation Scheme of Last Resort (CSLR, the Scheme) has today published its revised levy estimate for FY27. 

With assistance from independent actuaries and in alignment with the relevant legislation, the revised estimate has been calculated to be $198.1m, an additional $60.7m more than the initial levy estimate of $137.5m.

These funds will facilitate the CSLR processing of 1,567 claims, up from 912 in the initial levy estimate.

Source: Table 1.1 of the Actuarial Report: Initial Estimate for FY27 (4^th levy period).

The CSLR acknowledges that the increase in the estimate is significant and attributes the lift to the expected 71% increase in compensation claim payments in FY27.

The additional claims are largely attributable to:

• The final cohort of claims related to Dixon Advisory & Superannuation Services (DASS), following faster-than-anticipated complaint processing by AFCA.
• The first tranche of claims associated with the Shield and First Guardian Master Fund product failures.

As the expected amount for the personal financial advice sub-sector exceeds the sub-sector cap of $20m, the CSLR is seeking a special levy for the FY27 period.

The initial FY27 levy estimate published in November 2025 excluded any impacts of Shield and First Guardian Master Funds due to limited available information.

Since November 2025, details have emerged relating to the potential size and scale of compensation required from the CSLR in relation to Shield and First Guardian Master Fund failures; consequently, the revised estimate now incorporates an allowance for claims relating to these products.

“The CSLR has now been in operation for two years. Our experience indicates the overwhelming majority of claimants believed they were taking a prudent and positive step by placing trust in a professional to provide expert advice in a complex financial system. Many are now left feeling as though that this trust was misplaced,” explains CSLR CEO David Berry.

“The CSLR has now paid over $200m in compensation to more than 1,600 victims of financial misconduct”

“The majority of compensation paid represents money lost from defective personal financial advice and, in many cases, the compensation paid provides for only a partial recovery of hard-earned savings.”

“Unfortunately, we see the disproportionately negative impact of individuals within the financial services sector who have done the wrong thing. That impact weighs on the whole sector and comes at the expense of the lasting emotional, physical and financial wellbeing of individuals working hard to save for retirement,” says Berry.

The CSLR remains committed to ensuring eligible consumers have access to compensation where financial firms have failed, and to maintaining transparency around the operation and funding of the Scheme.

Full details of the revised FY27 levy estimate are available in the accompanying Actuarial Report.