SMSF Association Submission – Compensation Scheme of Last Resort 2026–27 special levy

The SMSF Association welcomes the opportunity to provide comments on Treasury’s proposed application of the Compensation Scheme of Last Resort (CSLR) waterfall framework for the 2026-27 special levy.

The Association supports the objective of the CSLR and its important role as a consumer protection mechanism where an eligible AFCA determination remains unpaid. As we stated in our submission1 on the sustainability of the CSLR2, its long-term sustainability cannot be achieved simply by reallocating escalating costs between compliant participants in the financial services system. The more fundamental objective must be to reduce the incidence and scale of the losses that give rise to CSLR claims in the first place.