CSLR Special Levy Confirmed: Brokers to Contribute $1.44 Million for 2026–27

The Government has confirmed the 2026–27 special levy for the Compensation Scheme of Last Resort (CSLR). The determination, made by the Assistant Treasurer and Minister for Financial Services, Dr Daniel Mulino, and registered on 12 October 2026, raises $170.3 million to compensate clients of failed financial advice firms. That is how much this year's financial advice claims, fees and costs exceed the $20 million the sub-sector pays each year.

What it means for brokers

Insurance brokers are levied through ASIC's "insurance product distributors" sub-sector. That sub-sector will pay $1,443,978.25 in total, about $100 for each of the more than 14,000 brokers NIBA represents. That is more than seven times last year's special levy on the sub-sector, which was $194,462.

ASIC will work out each licensee's share and issue invoices through the ASIC regulatory portal. Last year ASIC charged the sub-sector a flat $65 per licensee. If the same approach applies and licensee numbers are similar, this year's invoice would be roughly $480 per licensee. ASIC's notice will set the actual amount. Last year, payment was due 30 business days after ASIC issued the notice.

Either one of the Houses of Parliament can disallow the determination within five sitting days. If neither does, it takes effect, and ASIC can begin invoicing.

How the levy is spread

The levy is spread in three tiers. Financial advice licensees pay $10 million and responsible entities of managed investment schemes pay $40 million. Treasury's own assessment found responsible entities to be the only sub-sector beyond financial advice connected to the losses. The remaining $120.3 million is spread across 21 other sub-sectors, including insurance brokers.

What NIBA argued

In its 2 October submission, NIBA asked Treasury to remove insurance brokers from the levy. The CSLR covers personal financial advice, credit and securities dealing, so a broker's client with an unpaid determination has no claim on it. The Government adopted the allocations it consulted on, so that request was not taken up.

NIBA also called for:

• a minimum threshold, so that a sub-sector with no connection to the losses is not levied where its share costs more to collect than it is worth
• an independent review of the scheme's administration costs, which at $31.1 million this year exceed the combined annual levies on the four CSLR sub-sectors
• recovery from failed firms' professional indemnity insurers, and those of gatekeepers such as auditors, before compliant businesses are levied
• published forward estimates of each sub-sector's exposure, since a Tier 3 sub-sector can be asked for up to $30 million a year

NIBA will continue to press these points with Treasury and the Minister ahead of the 2027–28 levy period. Members with questions can contact Ben Marshan, Policy and Advocacy, at policy@niba.com.au.