Slower claim volumes will result in underspend of FY25 levy funds 

As we approach the end of the financial year and gain greater clarity on the volume and status of lodged claims likely to be paid in FY25, the full $24.1 million levied for the FY25 period will not be fully utilised.  

The claim volume originally estimated in December 2023 is expected to eventuate, however, claims have taken longer than anticipated to reach the CSLR, and will be received in FY26. 

More precise details can be expected after the conclusion of the financial year.  

CSLR CEO, David Berry, explains that beyond DASS, the CSLR has seen multiple large-scale firm failures within the personal financial advice sector, with at least two of these failures potentially leading to more than 800 claims.  

“These failures continue to significantly impact the amount of compensation likely to be paid in the coming financial years. The key driver to the timing of payments remains the speed at which the CSLR receives claims.” 

“The projected underspend will be utilised to pay compensation in subsequent financial years and be offset against the FY27 levy estimate,” Mr Berry said. 

In line with a lower number of claims paid, the CSLR operating costs are tracking below the levy estimate.  

The CSLR continues to focus on ensuring eligible victims of financial misconduct are supported in line with its legislative mandate.