Little CSLR levy relief foreshadowed in Budget | Australian Markets

The funding preparations for the Compensation Scheme of Last Resort (CSLR) stay subject to a Treasury post-implementation review, however the Budget papers clarify that financial advisers ought to anticipate little respite.

The Portfolio Budget Statements for 2025-26 reveal budgeted income from the CSLR levy leaping from $24.277 million in 2024-25 to $27.860 million after which remaining at that degree throughout to the ahead estimates out to 2028-29.

ASIC’s conventional “supervisory cost levies” are additionally forecast to rise from $319,255 million in the present financial 12 months to $334.166 million in 2025-26 rising to $337.496 million in 2026-27 earlier than lowering over the next out years.

The Government introduced a post-implementation review of the CSLR in January with stakeholder submissions closing on 28 February.

The phrases of reference for the review stated it could take into account:

How the CSLR is delivering on its meant aims;

• How the CSLR funding model is formulated, together with its potential impacts on companies who fund the industry levy;
• How the powers of the CSLR Operator work together with supply of the scheme; and
• The present scope of the CSLR and any associated issues. The review ought to have regard of different present and up to date critiques and inquiries as related.

The Government introduced the review amid industry uproar over the way in which the associated fee of the CSLR levy was impacting advisers, rising dramatically from $1,186 per 12 months to $4,516 – an increase of 250%.

Stakeholder submissions to the Treasury review have nearly with out exception known as for modifications to the levy regime, arguing that the present methodology makes it unsustainable.