A scheduled Senate inquiry into the Compensation Scheme of Last Resort (CSLR), set down to start in March, has been postponed until well after the coming federal election (to be held on or before 17 May).
Posting on LinkedIn, Phil Anderson, the FAAA’s General Manager Policy, Advocacy and Standards, says given the blow out in the cost of the CSLR scheme, the “delay is very frustrating”.
“Not only will the scheme potentially cost the advice profession $70m in 2025/26, but in fact much more in 2026/27,” he says.
The FAAA called for a review of the scheme in September, and Anderson says the reasons for an inquiry have grown exponentially since then.
“Deferring action on the grounds of a delay in the Senate inquiry, or due to calling for a new review, is simply not an acceptable position to take,” he says.
Anderson says the advice profession needs greater certainty on their exposure under the CSLR.
“It is essential the Government and Parliament listen to those calls and make commitments before the election,” he says.
The inquiry is due to start 28 July.
Click here to read our previous reports on CSLR.
