The pre-CSLR complaints estimate was the first estimate provided under the legislative framework passed by the Australian Government in June 2023.

Further estimates and annual levies will be calculated for the following periods:

• Year 1 (April–June 2024): funded by the Australian Government.

• Year 2 and ongoing (July 2024–June 2025): funded by relevant sectors of the financial services industry.

The legislation determines the levy as an estimate that is the sum of

The total value of this one-off levy cannot exceed the scheme levy cap of $250 million.

The pre-CSLR estimate, following legislative processes, will form a one-off levy that is expected to pay eligible compensation claims from the pre-CSLR complaint backlog from 1 November 2018 to 7 September 2022.

Any complaints lodged from 8 September 2022 onward will be funded by annual levies.

The legislation required payment of this pre-CSLR complaints levy by the ten-largest banking and general/life insurance groups by income from financial year 2021-2022, as reported by the Australian Taxation Office (ATO).

The CSLR board determined a pre-CSLR complaints estimate of $241 million, which falls within the $250 million cap set in the legislation.

In accordance with the Act and its statutory obligations, the CSLR Board determined the estimate having due regard to actuarial principles and in cooperation with qualified and recognised experts.

The Board did not deviate from the estimate determined in the report from independent actuarial consultant, Finity Consulting.

The Board reasonably believed, noting the prudent and realistic assumptions made by Finity Consulting, that the estimate accurately reflected the expected cost of meeting the pre-CSLR complaints.

It is further noted that a second independent actuarial consultant, Taylor Fry, endorsed the methodology, analysis and determination of Finity Consulting.

FY2024 levy period estimate of $4.8m

• Funded by the Australian Government.
• This estimate covers eligible compensation claims, AFCA fees, the CSLR operating costs and capital reserve contributions between 2 April 2024 to 30 June 2024.

The Principal Actuary’s initial levy estimate recommendation was $4.8m. A full copy of the report is available to provide transparency of the estimates modelling and assumptions.

Sub-sector breakdown

FY2025 levy period estimate of $24.1 million

• Funded by the 4 financial subsectors covered by the CSLR.
• This estimate, following legislative processes, covers eligible compensation claims, AFCA fees, the CSLR operating costs, ASIC administration costs and capital reserve contributions between 1 July 2024 to 30 June 2025.

The Principal Actuary’s initial levy estimate recommendation was $4.8m. A full copy of the report is available to provide transparency of the estimates modelling and assumptions.

Sub-sector breakdown

FY2026 levy period estimate of $77.97 million

The CSLR engaged the services of the Principal Actuary to undertake the detailed modelling and analysis, ensuring compliance with legislative requirements and confidence in the estimates.

The Principal Actuary’s initial levy estimate recommendation was $77,975,000.

A full copy of the report is available to provide transparency of the estimates modelling and assumptions.

A summary of the actuaries estimates is outlined below:

• As the initial levy estimate for the financial advice sub-sector exceeds the $20 million cap, ASIC can only issue the annual levy up to $20 million at the sub-sector level.
• The amount above $20 million for the financial advice sub-sector will require funding via a special levy with formal notification of this requirement to be made to the Minister for Financial Services early in FY26. Consistent with the legislation, the CSLR will complete a revised levy estimate for FY26.
• The consideration of any special levy will be determined by the Minister and subject to separate parliamentary approval.

Sub-sector breakdown

FY2026 levy period revised estimate of $75.698 million

With the assistance of CSLR’s principal actuary, the CSLR has revised the initial FY2026 estimate of $77.975m down to $75.698m. Read the full report here. 

As the revised estimate for the personal financial advice sub-sector is above the $20m sub-sector cap, ASIC can only issue the annual levy up to $20m as per the legislation.

Any funding beyond the $20m sub-sector cap must be sought through a special levy. To initiate this process, the CSLR will notify the Minister for Financial Services of the need for a special levy. The implementation of any special levy will be subject to the Minister’s consideration and will require a separate parliamentary process and approval. 

Summary of the revised estimate:

• A special levy for the amount of $47.3m in relation to the personal financial advice sub-sector will be requested by the CSLR.
• The estimate for the securities dealing sub-sector has increased from $2.3m to $4.7m. The increase will be funded by the CSLR’s cash reserves and recovered in the FY27 annual levy for securities dealing. 

Sub-sector breakdown

Frequently asked questions

How are the entity amounts calculated for a special levy?

The method for calculating an individual entity’s levy is set out in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023.

The calculation of the leviable amounts under a special levy will also be subject to the decision of the Minister, including whether a levy should be imposed at all, and if so, on which entities it will apply. 

How has the revised estimate been calculated?

CSLR Actuarial Policy:

The CSLR has adopted and implemented a Policy for Determination of Estimates for the FY2026 levy period. 

This policy ensures that the appropriate framework and governance structure have been incorporated into the determination process, which reflects its obligations under the legislation. 

Independent estimate modelling and report:

The CSLR engaged the services of its principal actuary Finity Consulting to undertake the detailed modelling and analysis, ensuring compliance with legislative requirements and confidence in the estimates. 

The principal actuary’s revised estimate for FY2026 is $75,698,000. 

A full copy of the report is available to provide transparency of the estimates modelling and assumptions. 

What are the next steps?

• CSLR completes a revised levy estimate of claims, fees and costs. The revised estimate can only be registered and tabled after 1 July 2025.
• CSLR notifies the Minister that the revised levy estimate exceeds the $20 million sub-sector cap;
• The Minister has discretion to apply the special levy, including who the levy applies to, the amount of the levy, and the timing of the levy. If the Minister determines a special levy needs to be imposed, a Ministerial instrument will be registered and is subject to a ‘Disallowance period’ of 15 days for each House of Parliament.
• ASIC calculates levy share for each entity based on the legislative requirements and Ministerial determination.
• ASIC issues individual levy notices to each entity.
• ASIC collects the payment on behalf of the Australian Government.
• The Government then provides the funds to the CSLR.

What does this mean for the securities dealing sub-sector?

The estimate for Securities dealing has increased from $2.3m to $4.7m. The increase will be funded by CSLR’s cash reserves, and recovered in the FY2027 annual levy for securities dealing.