Financial Advice Association Australia has launched a member survey on the impact of Compensation Scheme of Last Resort levies.

The association has long pressed for a review of the funding set-up and voiced concerns during consultations on the program, which began in April 2024.

GM of policy, advocacy and standards Phil Anderson says survey feedback will “inform [our] recommendations to the next round of government consultations on the sustainability” of the scheme’s funding model.

Last December, Financial Services Minister Daniel Mulino announced a special levy of $47.3 million to cover the program’s funding shortfall this financial year.

The 2025-26 special levy will be spread across 23 retail-facing financial services subsectors, with retail advisers slugged the biggest portion at 22%, or almost $10.4 million.

Scheme legislation caps a subsector’s annual levy contribution at $20 million, but there are provisions for a special charge should the need arise.

The scheme provides redress for complainants who have not been paid following Australian Financial Complaints Authority determinations.

Another special levy is expected after a blowout in claims following the collapse of some investment schemes.

Ms Abood says the advice sector’s special levy for FY27 “would be about $126.9 million, so very substantially higher than it was for the current financial year”.