Don’t expect CSLR relief from Budget2026

Mike Taylor

Managing Editor and Publisher

4 May 2026

Barely a week out from the tabling of the Federal Budget, the Australian Financial Complaints Authority (AFCA) has released an update of its Data Cube and the news for financial advisers is not good with complaints related Shield and First Guardian continuing to grow.

But the Government’s scheduling means addressing the problem is more likely in the 2027 Budget documents.

Complaints resulting in determinations by AFCA then translate into activity for the Compensation Scheme of Last Resort (CSLR) if the determination is not paid, and the AFCA Data Cube points a mounting number of cases to be reviewed by the CSLR.

What the updated Data Cube reveals is degree to which complaints relating to the collapse of the Shield Master Fund and the First Guardian Master Fund are competing with Dixon Advisory in terms of matters being dealt with by AFCA.

The financial advice licensees against which the Australian Securities and Investments Commission (ASIC) has initiated investigations or actions have climbed up the AFCA rankings with InterPrac now topping the list with 866 complaints progressed, while Financial Services Group has 215, MWL Financial Services accounts for 168 and Falcon Capital accounts for 94.

What needs to be remembered is that number of complaints being lodged with AFCA appear certain to rise in circumstances where the Australian Securities and Investments Commission is actively urging affected investors to pursue their rights.

With the Federal Budget documents already mostly complete and with the Government having initiated multiple consultations around the CSLR which will remain open until 22 May, financial advisers should not expect any significant relief when the Budget it is handed down on 12 May.

Indeed, the Assistant Treasurer and Minister for Financial Services, Daniel Mulino, has made clear that the Government will deliver a “proportionate” response to the consultation later in the year.

In the meantime, advisers have now received their CSLR levy invoices, including the cost of the special levy imposed to cover the major sub-sector cap cost over-run relating to financial advice.

The Government opted to address that cost over-run by including all CSLR sub-sectors in the special levy, albeit that the financial advice sector carried the bulk of the burden.

With the number of complaints around Shield and First Guardian still mount, the CSLR is due to issue a revised cost estimate next month which is again expected to identify another over-run in the sub-sector cap.