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

The CSLR operates under legislation created with bipartisan support to administer unpaid determinations made by the Australian Financial Complaints Authority (AFCA).

CSLR operates in a manner which is effective, efficient and economical with the goal of increasing consumer trust across the financial services sector.

With the assistance of independent external actuaries, the initial levy estimate for the upcoming financial year has been calculated at $77,975,000.

These funds will facilitate CSLR processing 1800 claims across the Pre CSLR levy and the FY26 levy estimate and the payment of compensation for 491 claims in relation to the FY26 levy estimate. This amounts to a three-fold increase in processing volume relative to FY25.

Of the $77.9m estimate, $70.11m is attributed to financial advice, $2.80m to credit provision services, $2.72m to credit intermediaries and $2.34m to the securities dealing sub-sector.*

The actuarial report - ‘FY26 initial levy estimate’ can be found on our website.

A more detailed license and authorised representative breakdown can be found on the ASIC website. 

David Berry, CEO of CSLR says “In line with our administrative function, we have, with the assistance of external actuaries, calculated the initial levy estimate for FY26.  As previously foreshadowed in October 2024, the estimate exceeds the $20m sub-sector cap for personal advice.

The key contributors driving the expected number of claims are attributed to Dixon Advisory & Superannuation Services and United Global Capital.” 

ASIC are only authorised to levy up to $20 million at a sub-sector level. 

The amount above $20m 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, 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.

* Excerpt taken from FY26 initial levy estimate – table 1.1 

Mr Berry expressed concern at the number of victims of financial misconduct, the harm suffered at the hands of a relative few and the impact this has on the reputation of an entire industry.  

“We will continue to work closely with industry, Treasury, ASIC and the Minister’s office as we fulfil our legislative responsibilities alongside building greater trust amongst consumers in the financial services sector.”