CPA Australia has expressed concerns over the government’s announcement of a review into the Compensation Scheme of Last Resort (CSLR) following reports of a levy increase for financial advisers.  

The CSLR levy is expected to surge by more than 250% in 2025-26, from A$1,186 ($726.54) to A$4,516, which could make financial advice less accessible to ordinary Australians. 

This hike is seen as disproportionate and unfair, potentially deterring new entrants into the profession and increasing the financial burden on consumers seeking advice.  

The CSLR was established in 2024 after the Ramsay Review and the Royal Commission’s findings. 

It had additional backing from the final report of the Royal Commission into misconduct in the banking, superannuation, and financial services sector. 

CPA Australia financial advice spokesperson Richard Webb said: “Financial advisers are paying the price for failed products and individuals who have left the industry, leaving the rest to pick up the tab. Not only are professionals in the sector being let down, but consumers are being punished too as the increase in the levy inevitably increases costs for individuals seeks affordable financial advice. 

“At a time of increasing costs and regulatory burden, the rise in the CSLR levy of more than 250% is disproportionate and wholly unfair, driven by the unjust premise that individual professionals in an industry must pay for the costs of failed operators. This is like saying that doctors must pay for the malpractice of their colleagues. The government’s decision to review the Compensation Scheme of Last Resort is welcome because it is urgently needed.” 

CPA Australia has also recently addressed the Senate Economics Legislation Committee, urging a reconsideration of proposed legislation that could affect small businesses.  

The bill in question would remove deductions for the general interest charge and shortfall interest charge.