iscover 
The Compensation Scheme of Last Resort (CSLR) has today (17 November) released its Initial Levy Estimate for FY27, revealing that the credit intermediation sub-sector (mortgage and finance brokers) has an initial levy estimate of $2.2 million for the upcoming financial year.
This represents a modest increase from the revised estimate of $1.8 million for the 2025–26 period. The low claims figure means the sub-sector's contribution remains small relative to the total required levy - which has soared given ongoing issues in personal advice.
Indeed, the overall levy needed for FY27 has seen a massive jump, set to be the largest to date at a total of $137.5 million to cover an expected 912 claims. This marks a substantial increase from the revised $75.7 million figure for the prior financial year.
The estimate is overwhelmingly dominated by the personal financial advice sub-sector, which will need to pay $126.9 million, vastly exceeding the legislative $20 million sub-sector cap.
This breach of the cap immediately triggers a legislative process that will require the CSLR to complete a revised estimate in June 2026.
Concerningly, the current $137.5 million estimate does not include the potential impact of high-profile collapses such as Shield and First Guardian.
CSLR CEO David Berry said that, due to "too many uncertainties," the impact of these collapses could not be reliably estimated at this stage. However, based on limited information, the CSLR anticipates the revised levy estimate in June 2026 may be even higher than the $137.5 million estimate published today.
“The rate and scale of firm failures aren’t slowing. The number of impacted consumers continues to rise, and the proportionate negative impact caused by a relative few remains significant,” Berry said.
Full Breakdown of the FY27 Initial Levy Estimate:
|
Sub-sector |
FY27 Initial Levy Estimate |
|
==
==
Personal financial advice |
$126.9m |
|
Securities dealing |
$6.5m |
|
Credit intermediation (Brokers) |
$2.2m |
|
Credit provision |
$2.0m |
More to come.