CSLR penalties

There are three types of penalties relating to Compensation Scheme of Last Resort (CSLR) levies.

Late payment of levies

There are penalties for late payment of CSLR levies, which are calculated and charged for each month after the payment deadline. The late payment penalty is calculated as 20% per annum of the overdue levy amount.

For example, if the overdue amount is $100, a late payment penalty of $1.67 will be added each month to the total amount payable ($100 x 20% / 12 months = $1.67 per month).

Penalties apply from the start of a levy month after the instalment became due for payment.

If your levy is not paid in full after 12 months, ASIC may cancel your licence and deregister your company.

A shortfall penalty

A shortfall applies if a person makes a false or misleading statement (including through omission) that results in a smaller levy being paid than should be the case. The penalty will be equal to twice the amount of the shortfall between the amount paid and the levy that should be payable.

Failure to submit business activity metrics

ASIC will use the industry funding business activity metrics to calculate the leviable amount for the relevant CSLR levy period.

It is a criminal offence to fail to comply with the obligation to submit your business activity metrics on ASIC’s Regulatory Portal by the due date.

The penalties in the legislation can apply if someone has not submitted metrics without a “reasonable excuse”. Those who believe they have a reasonable excuse need to provide evidence by contacting us online. Ensure you select either “Credit Licence” or “Financial Services Licence” and then “CSLR” so the enquiry is sent to the correct team quickly. Please attach any documentary evidence.

There are a range of steps that ASIC will take to calculate levy notices for entities that did not submit business activity metrics.

Further details regarding penalties can be found in the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.