{"id":"F2025L01421","name":"Financial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Cost Estimates for 2026-27 Levy Period) Determination 2025","slug":"f2025l01421","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":443049,"registerId":"F2025L01421-fast-fetch-1775957954583","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Financial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Cost Estimates for 2026-27 Levy Period) Determination 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth coat of arms of Australia](image.001.jpeg)\n\n \n\nFinancial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Cost Estimates for 2026-27 Levy Period) Determination 2025\n\nThe Compensation Scheme of Last Resort Limited, operator of the financial services compensation scheme of last resort, makes the following determination.\n\nDated   21 November 2025\n\n \n\nCompensation Scheme of Last Resort Limited\n\nOperator of the Financial Services Compensation Scheme of Last Resort\n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1  Name \n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\nPart 2—Estimates of claims, fees and costs for 2026-27 levy period\n\n5  Credit intermediaries sub-sector\n\n6  Excess amount—credit intermediaries sub-sector\n\n7  Credit providers sub-sector\n\n8  Excess amount—credit providers sub-sector\n\n9  Licensed personal advice sub-sector\n\n10  Excess amount—licensed personal advice sub-sector\n\n11  Securities dealers sub-sector\n\n12  Excess amount—securities dealers sub-sector\n\n \n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the Financial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Cost Estimates for 2026-27 Levy Period) Determination 2025.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\n4  Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n2026-27 levy period means the 12-month period starting from 1 July 2026.\n\ncredit intermediaries sub-sector has the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023.\n\ncredit providers sub-sector has the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023.\n\nfinancial services compensation scheme of last resort has the same meaning as in the Corporations Act 2001.\n\nlicensed personal advice sub-sector has the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023.\n\nsecurities dealers sub-sector has the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023.\n\nthe Act means the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\nPart 2—Estimates of claims, fees and costs for 2026-27 levy period\n\n \n\nNote 1: The 2026-27 levy period is the fourth levy period.\n\nNote 2: No amounts have been included in relation to subparagraph 9(1)(b)(iv) of the Act as that subparagraph does not apply in relation to the fourth levy period.\n\n5  Credit intermediaries sub-sector\n\n  Under subsection 9(1) of the Act, for the 2026-27 levy period and the credit intermediaries sub-sector, the determined estimate is $2,155,918.33, being the sum of the following specified amounts:\n\n (a) for the purposes of paragraph 9(1)(a) of the Act, the amount of $1,001,028.25;\n\n (b) for the purposes of paragraph 9(1)(b) of the Act, the amount of $1,728,134.45, comprising the following:\n\n (i) $260,640.61 (see subparagraph 9(1)(b)(i) of the Act);\n\n (ii) $1,242,493.84 (see subparagraph 9(1)(b)(ii) of the Act);\n\n (iii) $225,000.00 (see subparagraph 9(1)(b)(iii) of the Act);\n\n (iv) $0.00 (see subparagraph 9(1)(b)(v) of the Act).\n\nless the excess amounts referred to in subsections 6(1) and (2) of this instrument.\n\n6  Excess amount—credit intermediaries sub-sector\n\n (1) For the purposes of subsection 9(1) and paragraph 9(2)(a) of the Act, the excess amount for an earlier levy period and the credit intermediaries sub-sector is $573,244.37.\n\n (2) For the purposes of subsection 9(1) and paragraph 9(2)(c) of the Act, the excess amount attributable to the credit intermediaries sub-sector is $0.00.\n\n7  Credit providers sub-sector\n\n  Under subsection 9(1) of the Act, for the 2026-27 levy period and the credit providers sub-sector, the determined estimate is $2,003,430.97, being the sum of the following specified amounts:\n\n (a) for the purposes of paragraph 9(1)(a) of the Act, the amount of $401,341.45;\n\n (b) for the purposes of paragraph 9(1)(b) of the Act, the amount of $1,739,116.27, comprising the following:\n\n (i) $270,802.55 (see subparagraph 9(1)(b)(i) of the Act);\n\n (ii) $1,243,313.72 (see subparagraph 9(1)(b)(ii) of the Act);\n\n (iii) $225,000.00 (see subparagraph 9(1)(b)(iii) of the Act);\n\n (iv) $0.00 (see subparagraph 9(1)(b)(v) of the Act).\n\nless the excess amounts referred to in subsections 8(1) and (2) of this instrument.\n\n8  Excess amount—credit providers sub-sector\n\n (1) For the purposes of subsection 9(1) and paragraph 9(2)(a) of the Act, the excess amount for an earlier levy period and credit providers sub-sector is $137,026.75.\n\n (2) For the purposes of subsection 9(1) and paragraph 9(2)(c) of the Act, the excess amount attributable to the credit providers sub-sector is $0.00.\n\n9  Licensed personal advice sub-sector\n\n  Under subsection 9(1) of the Act, for the 2026-27 levy period and the licensed personal advice sub-sector, the determined estimate is $126,851,045.47, being the sum of the following specified amounts:\n\n (a) for the purposes of paragraph 9(1)(a) of the Act, the amount of $108,715,443.07;\n\n (b) for the purposes of paragraph 9(1)(b) of the Act, the amount of $21,741,838.07, comprising the following:\n\n (i) $18,670,629.74 (see subparagraph 9(1)(b)(i) of the Act);\n\n (ii) $2,546,208.33 (see subparagraph 9(1)(b)(ii) of the Act);\n\n (iii) $525,000.00 (see subparagraph 9(1)(b)(iii) of the Act);\n\n (iv) $0.00 (see subparagraph 9(1)(b)(v) of the Act);\n\nless the excess amounts referred to in subsections 10(1) and (2) of this instrument.\n\n10  Excess amount—licensed personal advice sub-sector\n\n (1) For the purposes of subsection 9(1) and paragraph 9(2)(a) of the Act, the excess amount for an earlier levy period and the licensed personal advice sub-sector is $3,606,235.67.\n\n (2) For the purposes of subsection 9(1) and paragraph 9(2)(c) of the Act, the excess amount attributable to the licensed personal advice sub-sector is $0.00.\n\n11  Securities dealers sub-sector\n\n  Under subsection 9(1) of the Act, for the 2026-27 levy period and the securities dealers sub-sector, the determined estimate is $6,484,092.08, being the sum of the following specified amounts:\n\n (a) for the purposes of paragraph 9(1)(a) of the Act, the amount of $4,337,716.58;\n\n (b) for the purposes of paragraph 9(1)(b) of the Act, the amount of $2,228,745.21, comprising the following:\n\n (i) $801,781.88 (see subparagraph 9(1)(b)(i) of the Act);\n\n (ii) $1,201,963.33 (see subparagraph 9(1)(b)(ii) of the Act);\n\n (iii) $225,000.00 (see subparagraph 9(1)(b)(iii) of the Act);\n\n (iv) $0.00 (see subparagraph 9(1)(b)(v) of the Act);\n\nless the excess amounts referred to in subsections 12(1) and (2) of this instrument.\n\n12  Excess amount—securities dealers sub-sector\n\n (1) For the purposes of subsection 9(1) and paragraph 9(2)(a) of the Act, the excess amount for an earlier levy period and the securities dealers sub-sector is $82,369.71.\n\n (2) For the purposes of subsection 9(1) and paragraph 9(2)(c) of the Act, the excess amount attributable to the securities dealers sub-sector is $0.00.\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument performs exactly the function intended by its enabling legislation: making annual determinations of levy estimates for the Compensation Scheme of Last Resort. It has not expanded beyond this narrow, technical purpose."},"complexity_factors":["Short, focused instrument (12 sections) with single purpose: setting dollar amounts","Heavy reliance on external definitions—all sector definitions imported by reference to the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023","Mathematical structure requires cross-referencing to parent Act (Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023) to understand what subparagraphs 9(1)(b)(i)-(v) actually represent","Repetitive structure: four near-identical calculation templates for each sub-sector, creating verbosity without conceptual complexity","Only 7 defined terms in the instrument itself, but meaning depends on understanding of broader legislative scheme (Corporations Act 2001, Collection Act, and Regulations)","Note indicates subparagraph 9(1)(b)(iv) doesn't apply—suggesting conditional logic in parent Act that readers must navigate"],"plain_english_summary":"The instrument sets the levy amounts industry must pay into the Financial Services Compensation Scheme of Last Resort for 2026–27 — a government-backed fund that compensates consumers when firms (advisers, brokers, lenders or securities dealers) cause losses and become insolvent.  \n\nIt allocates the scheme’s estimated costs and applies credits from past surpluses, with licensed personal advisers bearing the largest share due to the sector’s disproportionate historical misconduct and resulting claims."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This determination does not change who is covered or the statutory levy mechanism; it sets monetary estimates under subsection 9(1) of the Act for the 2026–27 levy period (see Parts 2 and Note 2). It relies on definitions in the Act and Levy Regulations (s4) and applies carry‑over excesses for earlier periods (secs 6, 8, 10, 12). No new categories or regulatory powers are introduced."},"complexity_factors":["Multiple sub‑sector schedules with precise monetary amounts to the cent (secs 5–12) increases bookkeeping and audit detail.","Calculations depend on statutory formulae in subsection 9(1) of the Act (see authority in s3 and repeated references in Parts 2).","Carry‑over excess amounts from earlier levy periods must be applied per subsections 6(1), 8(1), 10(1), 12(1), adding retrospective reconciliation work.","Definitions are largely imported from the Act and Levy Regulations (s4), so users must consult multiple instruments to understand coverage.","Limited policy discretion in the instrument (it records amounts rather than setting new rules) reduces legal complexity but raises operational compliance tasks for affected firms.","Formal commencement and publication provisions (s2) and explicit exclusions (Note 2 regarding subparagraph 9(1)(b)(iv)) require attention to timing and scope when computing levies."],"plain_english_summary":"*Financial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Cost Estimates for 2026-27 Levy Period) Determination 2025* sets the initial dollar estimates used to calculate levies for the 2026–27 levy period. It lists specific amounts for claims, fees and operating costs for four industry sub‑sectors and deducts carry‑over excesses from earlier periods.\n\nThe instrument affects firms in those sub‑sectors (who pay the levy) and the Scheme operator (who applies subsection 9(1) of the Act). These estimates determine how much regulated entities will be charged."}},"importantCases":[],"_links":{"self":"/api/acts/f2025l01421","history":"/api/acts/f2025l01421/history","analysis":"/api/acts/f2025l01421/analysis","conflicts":"/api/acts/f2025l01421/conflicts","importantCases":"/api/acts/f2025l01421/important-cases","documents":"/api/acts/f2025l01421/documents"}}