{"id":84284,"date":"2026-10-08T13:41:21","date_gmt":"2026-10-08T02:41:21","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=84284"},"modified":"2026-10-13T14:49:04","modified_gmt":"2026-10-13T03:49:04","slug":"faaa-calls-for-zero-advice-allocation-under-cslr-special-levy","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2026\/10\/08\/faaa-calls-for-zero-advice-allocation-under-cslr-special-levy\/","title":{"rendered":"FAAA Calls For Zero Advice Allocation Under CSLR Special Levy"},"content":{"rendered":"

Financial Advice Association Australia has urged Treasury to set financial advice\u2019s Tier 1 allocation under the proposed 2026-27 Compensation Scheme of Last Resort special levy at zero, with the $10 million redistributed across other sub-sectors.<\/p>\n

This recommendation is one of five in the association\u2019s submission<\/a> to Treasury\u2019s consultation on applying the waterfall framework to the 2026\u201327 special levy.<\/p>\n

Adding another $10 million means about $660 more per adviser…<\/p><\/blockquote>\n

\"\"<\/a>
FAAA CEO Sarah Abood …calling for other sub-sectors to fund the extra $10m levy<\/figcaption><\/figure>\n

FAAA CEO Sarah Abood<\/strong> said: \u201cFinancial advice has already paid its $20 million CSLR cap for the 2026-27 year. Adding another $10 million means about $660 more per adviser, on top of the $1,312 they\u2019ve already paid for this year. For a profession almost entirely made up of small businesses, a profession that has also almost halved since 2019, that is not marginal. The additional advice allocation should be zero.\u201d<\/p>\n

The submission cites the FAAA\u2019s April 2026 survey of 878 members, in which 44 per cent said they were aware of colleagues intending to leave the profession as a result of the CSLR (see also: CSLR Levy Fuels Adviser Exit Fears<\/a>).<\/p>\n

While welcoming elements of the proposal, including spreading the levy across a wider range of entities, the FAAA has questioned how major claims cohorts are attributed. It says Treasury\u2019s paper assesses responsible entities as connected to the Shield and First Guardian collapses, but not the superannuation trustees that offered those funds. The FAAA is also seeking published reasoning for classifying the UGC (GCPF) and Brite cohorts as \u201cfinancial advice only\u201d.<\/p>\n

\u201cWe are calling for greater transparency around the attribution of major CSLR matters to connected sectors,\u201d Abood says. \u201cFor example, ASIC has taken action against super trustees that put Shield and First Guardian on their platforms. In that context we believe that the decision to attribute Shield and First Guardian matters only to MISs and financial advice should be reviewed. In addition, research houses, social media platforms and auditors have all played a part in these collapses, and they should share the cost.<\/p>\n

\u201cA sustainable CSLR depends on stopping these costs from entering the scheme in the first place, and more attention needs to be paid to prevention, and stopping these collapses much earlier.\u201d<\/p>\n

Click here<\/a> to access the FAAA’s full submission to the Consultation – Compensation Scheme of Last Resort application of the waterfall framework for the 2026\u201327 special levy<\/p>\n","protected":false},"excerpt":{"rendered":"

Financial Advice Association Australia has urged Treasury to set financial advice\u2019s Tier 1 allocation under the proposed 2026-27 Compensation Scheme of Last Resort special levy at zero, with the $10 million redistributed across other sub-sectors. This recommendation is one of five in the association\u2019s submission to Treasury\u2019s consultation on applying the waterfall framework to the […]<\/p>\n","protected":false},"author":3,"featured_media":84287,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8],"tags":[],"class_list":["post-84284","post","type-post","status-publish","format-standard","has-post-thumbnail","category-associations","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/84284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=84284"}],"version-history":[{"count":4,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/84284\/revisions"}],"predecessor-version":[{"id":84297,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/84284\/revisions\/84297"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/84287"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=84284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=84284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=84284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}