{"id":"F2024L00028","name":"​​Financial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Estimate of Unpaid Claims and Fees) Determination 2024​","slug":"financial-services-compensation-scheme-of-last-resort-levy-collection-initial-estimate-of-unpaid-cla","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442237,"registerId":"F2024L00028-fast-fetch-1775957288745","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 Estimate of Unpaid Claims and Fees) Determination 2024​","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nFinancial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Estimate of Unpaid Claims and Fees) Determination 2024\n\nThe Compensation Scheme of Last Resort Limited, operator of the financial services compensation scheme of last resort, makes the following determination.\n\nDated  3 January 2024\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—Initial estimate of unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n5  Initial estimate of unpaid claims and unpaid fees\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 Estimate of Unpaid Claims and Fees) Determination 2024.\n\n2  Commencement\n\n (1) Each provision of 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\n  In this instrument:\n\nthe Act means the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\nPart 2—Initial estimate of unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n5  Initial estimate of unpaid claims and unpaid fees\n\n  Under section 11 of the Act, for the first levy period, $240,857,800.07 has been determined as the estimated sum of:\n\n (a) the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the total amount of compensation that:\n\n (i) will be payable under section 1063 of the Corporations Act 2001; and\n\n (ii) relates to pre‑CSLR complaints; and\n\n (b) the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the portion of the total amount of AFCA’s unpaid fees for all months that relates to pre‑CSLR complaints; and\n\n (c) the specified amount equal to AFCA’s accumulated unpaid fees.\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This determination does not change the statutory scope of the Levy Act. It implements section 11 of the Act by declaring the initial estimated sum ($240,857,800.07) and its components — estimated compensation payable under Corporations Act s.1063 for pre‑CSLR complaints, the portion of AFCA’s unpaid fees relating to those complaints, and AFCA’s accumulated unpaid fees — as set out in clause 5. It does not alter definitions, coverage, or collection powers provided by the Act."},"complexity_factors":["Statutory trigger and basis: made under the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023 and implemented by clause 5 (references s.11 of the Act).","Actuarial judgement: the operator determines amounts the operator 'reasonably believes (having regard to actuarial principles)' — introduces subjectivity and professional estimation (cl.5).","Dependence on external definitions and events: refers to 'pre‑CSLR complaints' and 'accumulation recovery day' whose legal meanings sit in the Act or related instruments (cl.5; cl.4 note).","Single precise monetary figure: a large, exact amount ($240,857,800.07) fixes immediate financial exposure for levy payers and affects cashflow and budgeting.","Limited procedural detail: the instrument specifies an amount and its three component categories but leaves collection mechanics, allocation among payers, and future adjustments to the Act and operator processes (cl.5)."],"plain_english_summary":"This determination sets the initial levy estimate for the first levy period at $240,857,800.07 to cover unpaid compensation for pre‑CSLR complaints and AFCA’s unpaid fees. Made by the CSLR operator under the Levy (Collection) Act, it uses actuarial judgement to allocate amounts. It affects firms required to pay the CSLR levy because it fixes the opening amount used to calculate their initial levy liability and therefore influences immediate compliance costs and cashflow."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument performs exactly the narrow, technical function it was designed for: making a single monetary determination under section 11 of the Collection Act. It does not expand beyond the original legislative intent of establishing the initial levy base for the CSLR's first funding period."},"complexity_factors":["Very short instrument (only 5 sections, approximately 1 page of substantive content)","Minimal defined terms (only 1 explicit definition: 'the Act')","Single operative provision (section 5) containing a straightforward monetary determination","Heavy reliance on external statutory context — requires understanding of the Corporations Act 2001, the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023, and AFCA's role","Nested subparagraphs (a)(i) and (a)(ii) creating a three-part formula for the $240.8 million figure","Technical terminology requiring domain knowledge: 'actuarial principles', 'pre-CSLR complaints', 'accumulation recovery day', 'AFCA's unpaid fees'"],"plain_english_summary":"This instrument sets the CSLR’s initial estimated funding requirement at $240,857,800.07 to cover unpaid AFCA compensation claims and accrued AFCA fees that existed before the Compensation Scheme of Last Resort began. It matters because that dollar figure determines the first levy to be raised from financial services firms (banks, insurers, super funds, advisers) so affected complainants can still be paid if a firm fails."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-collection-initial-estimate-of-unpaid-cla","history":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-collection-initial-estimate-of-unpaid-cla/history","analysis":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-collection-initial-estimate-of-unpaid-cla/analysis","conflicts":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-collection-initial-estimate-of-unpaid-cla/conflicts","importantCases":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-collection-initial-estimate-of-unpaid-cla/important-cases","documents":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-collection-initial-estimate-of-unpaid-cla/documents"}}