The Compensation Scheme of Last Resort (CSLR) pays compensation to claimants where an eligible determination issued by the Australian Financial Complaints Authority (AFCA) remains unpaid.
On 4 July 2025, the CSLR operator notified me that the estimated claims costs relating to personal advice in 2025-26 were $67.3 million.
This exceeds the $20 million limit on levies that can be applied to the advice sub-sector to fund the claims.
This has triggered the option available to me as the responsible Minister under the CSLR legislation to raise a special levy to pay for the excess costs.
I have asked Treasury to consult on all statutory options available to deal with this matter. The paper seeks feedback on a broad range of options to inform my decision.
Stakeholder feedback on this matter will also inform ongoing consideration into the CSLR as part of the CSLR Post-implementation Review.
I look forward to engaging constructively with stakeholders to address the excess and consider opportunities to support the ongoing sustainability of the CSLR.
The consultation paper is available on the Treasury website and stakeholders may provide submissions up until 29 August 2025.
