The financial advice sector faces growing uncertainty as 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 estimate far exceeds the A$75.7m levy scheduled for the 2026 financial year and eclipses the A$20m cap previously set by the Australian Securities and Investments Commission (ASIC).
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For comparison, the levy applied to advisers in 2024 stood at just A$4.8m.
CPA Australia financial advice spokesperson Richard Webb said: “This is yet another disproportionate and punishing outcome for advisers who have acted responsibly.
“Legal and regulatory reforms in 2024-25 squeezed the sector already. Now these levy hikes could drive many more advisers out, just as Australians need them most.”
The sector’s adviser population has seen a sharp decline, with numbers on the Financial Adviser Register dropping from 26,500 in 2019 to about 15,300 as of July 2025.
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By GlobalDataIf current projections hold, each adviser could face an average annual levy of A$8,300.
Webb described the funding framework for the scheme as “broken” and called on government to expedite its review process relating to the levy structure.
Webb further added: “Not only are professionals being let down, but consumers are also being punished because the increase in the levy will inevitably increase costs for Aussies seeking affordable advice.
“An effective CSLR must protect genuine victims without collapsing the whole advice system. We urgently need a levy model that is actuarially sound, legally capped and fair to today’s professionals and their clients.”
CPA Australia is a member of the Joint Associations Working Group, a coalition of ten industry bodies focused on improving access to financial advice.
In recent statements, CPA Australia urged policymakers to take steps to further develop Australia’s economic connections with Asia, indicating that insufficient engagement could limit business opportunities for Australian companies in key markets.
