CSLR Levy Estimate Jumps to $198.1 Million as Shield and First Guardian Claims Hit
Updated
Updated · smcaustralia.com · Jul 16
CSLR Levy Estimate Jumps to $198.1 Million as Shield and First Guardian Claims Hit
1 articles · Updated · smcaustralia.com · Jul 16
Summary
$198.1 million is the new estimate for the Compensation Scheme of Last Resort levy, up from $137.5 million as claims from Dixon Advisory and the first Shield and First Guardian cases flow through.
Nearly 12,000 Australians lost more than $1 billion in the Shield and First Guardian collapses, which were sold across four super platforms and are now intensifying pressure for stronger consumer safeguards.
ASIC said some super platforms showed “stark and persistent failures” in controlling advice-fee deductions, including one trustee that proposed a cap as high as $30,000.
Just 21 risk-based advice-fee checks were conducted by one trustee over almost 18 months, with a 75% adverse finding rate, underscoring weak oversight of member churn and unusual fund flows.
$1.1 billion in extra advice fees was deducted from Australians’ super accounts between 2023 and 2025, with five platforms accounting for $815 million, adding to calls for broader super-protection reforms.
Super funds lost $1 billion to misconduct. Why are innocent financial advisers now being forced to pay for these crimes?
Will capping super advice fees protect savers, or will it deny them access to crucial financial guidance?
After massive super collapses, can government reforms stop the next billion-dollar disaster, or are they just window dressing?
Australia’s CSLR Faces $170 Million Funding Crisis: Causes, Industry Impact, and Urgent Reform Pathways
Overview
The Compensation Scheme of Last Resort (CSLR) is facing a severe funding crisis as of July 2026, driven by an unprecedented surge in claims. This crisis is mainly caused by the collapse of major financial entities, such as Remi Capital, which owes over $124 million to investors and lenders, much of which the CSLR must now cover. Additionally, large penalties from misconduct cases like Walker Stores are adding to the scheme’s burden. Together, these events have created significant financial pressure on the CSLR, highlighting urgent challenges in its ability to meet obligations and the need for immediate reform.