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CSLR flags levy exceeding $20m cap

Mike Taylor23 October 2024
Meter showing high dollar cost

The Compensation Scheme of Last Resort has flagged that the upcoming CSLR levy is likely to exceed the $20 million cap for personal financial advice.

The CSLR flagged the likelihood to an industry forum stating that the final levy estimate is expected to be lodged with Parliament when it resumes sitting early next year.

In an outline of its discussions at the forum, it said the CSLR anticipates the upcoming levy will exceed the $20M sub-sector cap for personal financial advice. The process of confirming the levy estimate is complex and heavily dependent on,

  • the estimates of how many complaints will be resolved by AFCA and proceed to the CSLR in FY26; and,
  • the inclusion of any other large scale firm failures.

It said that whilst the total amount in relation to Dixon post the Pre CSLR allocation is unlikely to change significantly this amount will likely be spread over multiple levy periods depending on the timing of complaints being resolved with AFCA and people subsequently lodging a claim with the CSLR.

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Peter The Phantom Puller
26 days ago

CSLR is the new NDIS!

Adviser Theft & Persecution MUST STOP
26 days ago

Enough is BEYOND ENOUGH. Stuff you CANBERRA !!!!!!!!!!
How much did Govt pay for the first 12 mths it promised to pay ? oh that’s right it only paid for 3 mths as Govt changed the rules and it only paid for 1 Dixons complaint.
ASIC did nothing for over 10 years of at least 60 Dodgy Dixon’s complaints and barely acted when it was far too late.
ASIC let dodgy Dixons float on the ASX with full knowledge of the MIS Fiasco.
ASIC let dodgy Dixons Illegally Phoenix 39 Advisers and 3000 client to E&M for $ NIL

Adviser must Refuse to pay this rubbish until Govt is held accountable for its MASSIVE FAILURES.

Another Mad Planner
26 days ago

When a cap is not a cap!

Frank
26 days ago

Yeah, so tell us about the figures that were presented to parliament to get the cslr into place to begin with.

Utterly appalling.

A joke.

Sue
26 days ago

CSLR money would be better spent on educating people about financial matters, so they won’t be taken to the cleaners and need a bail-out. Yr 10 of Secondary school would be a good place to start.

Chris
26 days ago

The government, both current and former, are intent on taxing small business out of business.