Corporations (Financial Services Compensation Scheme of Last Resort - First Levy Period Cost Estimates) Determination 2024

The Corporations (Financial Services Compensation Scheme of Last Resort - First Levy Period Cost Estimates) Determination 2024 is a Commonwealth notifiable instrument made under the Corporations Act 2001 by the Compensation Scheme of Last Resort Limited, identified in the instrument as the operator of the financial services compensation scheme of last resort.

Its function is specific. It sets the determined estimate of cost for the first levy period for four financial services sub-sectors. Those estimates sit within the broader CSLR levy framework. In practical terms, the instrument identifies the estimated cost amount for each covered sub-sector for the first levy period, but it does not itself tell an individual business exactly how much it must pay.

That distinction is important for businesses. If you are trying to work out your own levy exposure, this determination is only one part of the picture. You also need to check the Corporations Act 2001, the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023 and any levy notices or later instruments that apply to your circumstances.

The determination applies by reference to four sub-sectors:

1. credit intermediaries sub-sector
2. credit providers sub-sector
3. licensed personal advice sub-sector
4. securities dealers sub-sector

The instrument does not define those categories in full. Instead, it says each expression has the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023. That means a business should not rely on the label alone. You need to check the regulations to confirm whether your activities place you inside one of those sub-sectors.

For many businesses, the practical starting point will be their licence position and the services they actually provide. ACL holders involved in arranging or intermediating credit may need to consider the credit intermediaries category. ACL holders providing credit may need to consider the credit providers category. AFSL holders providing personal advice or dealing in securities may need to consider the licensed personal advice or securities dealers categories. But the final answer depends on the legal definitions in the Levy Regulations 2023, not on broad commercial descriptions.

The determination states the following total estimated costs for the first levy period under subsection 1069M(1) of the Corporations Act 2001:

Credit intermediaries sub-sector: $757,893.66

Credit providers sub-sector: $739,717.37

Licensed personal advice sub-sector: $2,426,309.43

Securities dealers sub-sector: $922,563.77

These are the headline figures most businesses will look at first. They show the determined estimate for each covered sub-sector for the first levy period. The largest estimate is for licensed personal advice. The lowest of the four is for credit providers.

The instrument also breaks each total into specified component amounts because subsection 1069M(1) requires the estimate to be expressed as the sum of specified amounts for the statutory purposes referred to in that provision.

For transparency, the component amounts stated in the instrument are:

Credit intermediaries
Paragraph (a): $93,167.27
Paragraph (b) total: $664,726.39, made up of $85,658.57, $416,666.67 and $162,401.15

Credit providers
Paragraph (a): $3,604.89
Paragraph (b) total: $736,112.48, made up of $154,517.41, $416,666.67 and $164,928.40

Licensed personal advice
Paragraph (a): $422,307.05
Paragraph (b) total: $2,004,002.38, made up of $247,747.42, $416,666.67 and $1,339,588.29

Securities dealers
Paragraph (a): $196,904.31
Paragraph (b) total: $725,659.46, made up of $139,432.86, $416,666.67 and $169,559.93

For budgeting purposes, these figures are useful as published cost estimates for the first levy period. They should not be treated as the amount any one business will necessarily pay.

This determination is easy to overread, so it helps to be clear about its limits.

It does not set the detailed method for calculating each firm's individual levy. It does not define the four sub-sectors in full. It does not state exemptions, thresholds or reduced-rate rules. It also does not replace any levy notice or other compliance step that may apply under the broader CSLR framework.

That means the determination should be read as a cost-estimate instrument only. If your question is "What is my exact levy?" or "Am I definitely in this sub-sector?", this instrument alone will not answer it. You need to go beyond the determination and check the Act and the Levy Regulations 2023.

This is particularly important for businesses with mixed activities, businesses that hold both ACL and AFSL authorisations, and groups that carry on different licensed activities through different entities. In those situations, classification can be more important than the headline estimate itself.

The practical trigger is not simply that this determination exists. The real trigger is whether your business falls within one of the four covered sub-sectors for the first levy period under the CSLR framework.

If your business is in one of those sub-sectors, this determination matters because it sets the cost estimate for that sub-sector. That estimate then forms part of the broader levy framework under the Act and regulations. If your business is outside those sub-sectors, this particular determination may not affect you directly.

Businesses should pay closer attention when they are changing activities, expanding services or reviewing compliance budgets, because those are the points where sub-sector classification issues often become more important.

This instrument itself is mainly about setting estimates, but businesses still need to respond to it in a practical way. The main steps are to classify your business correctly, use the published estimate appropriately, and stay alert to the broader levy framework that may apply to your entity.

A sensible approach is to keep your analysis focused and documented. You do not need to create unnecessary paperwork, but you should be able to explain why you think your business is or is not in a particular sub-sector and what legal materials you checked.

It is also worth separating budgeting from liability. The estimate for your sub-sector can help with planning, but it is not the same thing as a final levy amount for your business. Businesses that blur those two concepts can either underprepare or overestimate their likely position.

Before relying on this determination for planning or internal advice, a business should review the documents and conduct that are most likely to affect classification and levy exposure. The aim is to match the legal sub-sector definitions to what the business actually does, and to identify which entity in a group is carrying on the relevant licensed activity.

The Federal Register entry shows this instrument as in force. The instrument is dated 14 March 2024 and the Register entry shows 18 March 2024. Under the commencement clause, the whole instrument starts on the day after registration.

For practical purposes, businesses should treat the Register details as the starting point for checking commencement and current status. If exact timing matters for a specific compliance question, confirm the registration details directly on the Federal Register.

The instrument is expressly about the first levy period. Businesses should not assume the same estimates will apply in later periods. Later determinations may set different estimates for later levy periods.

Do I need to read the Levy Regulations 2023 as well? Yes. This determination adopts the sub-sector meanings from those regulations and does not restate them.

Can I use the published estimate as my levy amount? No. The estimate is for the sub-sector as a whole for the first levy period, not automatically for your individual business.

What if my business offers more than one type of service? You should review your actual licensed activities and the legal definitions carefully, especially if your business spans credit and financial services activities.

Does this determination apply forever? No. It is specifically about the first levy period. Later periods may have different estimates set by later instruments.

This page is based on the Federal Register of Legislation entry for the Corporations (Financial Services Compensation Scheme of Last Resort - First Levy Period Cost Estimates) Determination 2024. The instrument states that the sub-sector expressions have the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023, so those regulations remain essential for classification and levy analysis.