Industry warns steep levy increase places unfair burden on financial advisers
Professional accounting body CPA Australia has welcomed the government’s decision to review the Compensation Scheme of Last Resort (CSLR), following concerns over a significant increase in the levy financial advisers must pay.
Reports indicate that in the 2025-26 financial year, the CSLR levy will rise from $1,186 to $4,516 — an increase of more than 250% within 12 months. The steep rise has sparked criticism from industry professionals, who argue it places an excessive burden on advisers already facing high costs and regulatory pressures.
The CSLR was implemented in 2024, following recommendations from the 2019 Ramsay Review and further supported by the Royal Commission into misconduct in the banking, superannuation and financial services sectors. The scheme aims to provide compensation to consumers who have suffered financial losses due to failed financial firms. However, critics argue the current funding model unfairly penalises advisers who have operated responsibly.
Richard Webb (pictured above), CPA Australia’s spokesperson on financial advice, expressed support for the government’s review but emphasised the need for swift action to prevent further strain on the industry.
“The issues of the past, perpetrated by the few, are being paid for by the financial advisers of today who have been doing their jobs properly and diligently the whole time,” Webb said. “The sector cannot go on like this.
“Financial advisers are paying the price for failed products and individuals who have left the industry, leaving the rest to pick up the tab.”
Webb warned that the increased levy could make financial advice less accessible for consumers.
“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,” he said.
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