CPA Australia flags risks amid escalating CSLR levy

The fiscal proposal assemblage faces increasing uncertainty arsenic the Compensation Scheme of Last Resort (CSLR) levy is projected to surge to A$127m ($82.7m) by 2027, according to statements from CPA Australia.

This updated estimation acold exceeds the A$75.7m levy scheduled for the 2026 fiscal twelvemonth and eclipses the A$20m headdress antecedently acceptable by the Australian Securities and Investments Commission (ASIC).

For comparison, the levy applied to advisers successful 2024 stood astatine conscionable A$4.8m.

CPA Australia fiscal proposal spokesperson Richard Webb said: “This is yet different disproportionate and punishing result for advisers who person acted responsibly.

“Legal and regulatory reforms successful 2024-25 squeezed the assemblage already. Now these levy hikes could thrust galore much advisers out, conscionable arsenic Australians request them most.”

The sector’s advisor colonisation has seen a crisp decline, with numbers connected the Financial Adviser Register dropping from 26,500 successful 2019 to astir 15,300 arsenic of July 2025.

If existent projections hold, each advisor could look an mean yearly levy of A$8,300.

Webb described the backing model for the strategy arsenic “broken” and called connected authorities to expedite its reappraisal process relating to the levy structure.

Webb further added: “Not lone are professionals being fto down, but consumers are besides being punished due to the fact that the summation successful the levy volition inevitably summation costs for Aussies seeking affordable advice.

“An effectual CSLR indispensable support genuine victims without collapsing the full proposal system. We urgently request a levy exemplary that is actuarially sound, legally capped and just to today’s professionals and their clients.”

CPA Australia is simply a subordinate of the Joint Associations Working Group, a conjugation of 10 manufacture bodies focused connected improving entree to fiscal advice.

In caller statements, CPA Australia urged policymakers to instrumentality steps to further make Australia’s economical connections with Asia, indicating that insufficient engagement could bounds concern opportunities for Australian companies successful cardinal markets.

"CPA Australia flags risks amid escalating CSLR levy " was primitively created and published by The Accountant, a GlobalData owned brand.

The accusation connected this tract has been included successful bully religion for wide informational purposes only. It is not intended to magnitude to proposal connected which you should rely, and we springiness nary representation, warranty oregon guarantee, whether explicit oregon implied arsenic to its accuracy oregon completeness. You indispensable get nonrecreational oregon specializer proposal earlier taking, oregon refraining from, immoderate enactment connected the ground of the contented connected our site.