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About ASIC

Compensation Scheme of Last Resort

The Compensation Scheme of Last Resort (CSLR) is an independent, not-for-profit company which commenced operations on 2 April 2024. Visit the CSLR website for more information about the scheme.

The CSLR will provide 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 or credit provision, and meet other eligibility criteria. A determination may be unpaid because the financial institution subject to the determination has become insolvent.

From 1 July 2024, the CSLR will be funded by levies imposed on parts of the financial services industry. Under the CSLR legislative framework:

  • The CSLR operator is responsible for determining the total costs for the leviable period; and
  • ASIC is responsible for issuing levy notices and collecting levy payments.

The information below is for industry participants required to pay the annual levy.

About the annual levy

Summary of annual levies

The summary of levies for the 2025-26 levy period is to assist entities in understanding how the annual levy amounts have been calculated.

Subsector Period Estimates 1 Number of entities Levy metric and description Actual levy amounts 2
Credit providers $2.799 million 1,013 Credit provided in the financial year (contracts other than small and medium amount credit contracts) Minimum levy of $100 plus $3.62 per $1 million of credit provided above $100 million (for other than small and medium amount credit contracts)
Credit intermediaries $2.723 million 4,137 Credit representatives and number of days authorised Minimum levy of $100 plus $52.04 per credit representative
Securities dealers $2.343 million 1,133 Annual transaction turnover value Minimum levy of $100 plus $16.12 per $1 million of annual transaction turnover
Licensees that provide personal advice to retail clients on relevant financial products $203 million 2,680 Adjusted number of advisers on the financial advisers register and number of days authorised Minimum levy of $100 plus $1,295 per adviser

1 Amounts are rounded to the nearest $1000.

2 Levy amounts have been rounded.

3 The total estimate for the sub-sector is $70.110 million, however ASIC is required to cap the annual levy at $20 million. Whether the remaining amount (e.g. $50.110 million) is imposed as a special levy is subject to the Minister’s discretion. For more information refer to the special levy FAQ.

Notices for the annual levy

Before ASIC can issue the annual levy notices, the following steps must take place:

  • The CSLR operator registers the levy instrument and explanatory memorandum on the Federal Register of Legislation
  • The instrument is tabled in each House of Parliament within 6 sittings days of being registered
  • A ‘Disallowance period’ of 15 sitting days for each House of Parliament needs to be satisfied.

ASIC aims to issue notices for the 2025-26 annual levy within 30 days of the disallowance period ending.

The levy notices will be available for account holders via the ASIC regulatory portal. For those not yet registered on the portal, the notice will be sent via mail to the address registered with ASIC. Levies will be due for payment 30 business days after issue.

Relevant legislation