The Compensation Scheme of Last Resort (CSLR) has today released the FY26 revised levy estimate.

The need for a revised estimate was triggered due to the initial levy estimate, issued in January 2025, exceeding the $20m sub-sector cap for the personal financial advice sub-sector.

With the assistance of CSLR’s principal actuary, the revised estimate for the 2026 financial year has been calculated at $75.698m, down from the initial estimate published in January of $77.975m.

The key movements in comparison to the initial FY26 estimate are in the personal financial advice sub-sector, seeing a decrease of $2.821m and the securities dealing sector, with an increase of $2.380m.

Personal financial advice

As the personal financial advice subsector estimate exceeds the sub-sector cap of $20m, the Scheme has notified the Minister for financial services of the need for a special levy of $47.289m.

Securities dealing

The revised estimate for the securities dealing sub-sector is $4.7m. The $2.4m increase will be funded by CSLR’s cash reserves and recovered in the FY27 annual levy for securities dealing.

David Berry, CEO of the CSLR, says the harm caused by those in the finance sector doing the wrong thing disproportionately impacts and detracts from those acting correctly, noting that the rate and number of firm failures show little sign of abating.

“Whilst we are disappointed at the need for a special levy, we recognise these funds provide a measure of compensation for those who have experienced lengthy and stressful financial loss, Mr Berry said.

The CSLR continues to operate in alignment with the legislative framework in a manner that is effective, efficient and economical as we strive to increase consumer trust across the financial services sector.”