Today, the Senate has passed legislation to establish the Compensation Scheme of Last Resort (CSLR), ensuring victims of financial misconduct will finally have access to redress and compensation. This implements one of the last outstanding recommendations from the Hayne Royal Commission.
This is a significant victory for over 2,000 people, who have been waiting for a resolution on their cases.
The CSLR will facilitate compensation of up to $150,000 to consumers who have an unpaid determination from the Australian Financial Complaints Authority relating to personal financial advice, credit intermediation, securities dealing and/or credit provision.
To ensure the CSLR can commence as soon as possible, the Government will fund the costs to establish the body that will operate the CSLR, including funding the costs of the first levy period through to the end of the 2023‑24 financial year. The scheme will then be funded by industry for future years.
Consumers will be able to lodge claims for compensation from April 2024, with the first compensation payments to follow shortly thereafter.
The Albanese Government is committed to strong consumer protections in the financial sector. The successful implementation of the CSLR will further strengthen consumer trust and confidence in Australia's financial system.
After nine years of Coalition neglect, Australians finally have a Government that puts them first, and the establishment of the CSLR is just one example. The Albanese Government is also standing shoulder to shoulder with consumers by:
- Establishing a world‑leading National Anti‑Scams Centre
- Reforming the regulation of payday loans and consumer leases
- Regulating Buy Now, Pay Later products
- Making financial advice more available and more affordable
