Financial Services Compensation Scheme of Last Resort Levy (Collection) (Revised Cost Estimates for 2025-26 Levy Period) Determination 2025

This instrument is the Financial Services Compensation Scheme of Last Resort Levy (Collection) (Revised Cost Estimates for 2025-26 Levy Period) Determination 2025. It is an in-force notifiable instrument made by Compensation Scheme of Last Resort Limited under the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.

Its role is specific. It sets revised estimates of claims, fees and costs for the 2025-26 levy period for four sub-sectors, and it also states revised excess amounts for those sub-sectors. The instrument defines the 2025-26 levy period as the 12-month period starting from 1 July 2025, and it notes that this is the third levy period. It also states that the revised determination is made under section 10 of the Act.

For business owners and compliance teams, this is mainly a levy-planning document. It matters if your entity falls within one of the listed sub-sectors, because the revised figures can affect budgeting, governance, internal reporting and how you prepare for levy-related communications. It is not a general conduct rule for all businesses, and it does not replace the need to check the parent Act and the Regulations.

The instrument expressly covers four sub-sectors only: credit intermediaries, credit providers, licensed personal advice and securities dealers. Those terms are not fully defined inside the determination itself. Instead, the instrument says they have the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023.

That means a business should not rely on ordinary language or marketing descriptions when deciding whether it is covered. The legal question is whether the entity falls within the relevant sub-sector definition in the Regulations. For example, a business may describe itself as a broker, lender, adviser or dealer in commercial terms, but the levy framework depends on the legal definitions used in the Regulations.

This is especially important for groups with multiple entities or mixed business models. One entity in a group may sit in a different sub-sector from another. A business that has changed licence scope, products, services or structure should also avoid assuming that last year's classification still works for the 2025-26 levy period.

Part 2 of the instrument sets revised estimates of claims, fees and costs for each listed sub-sector. For each one, the determination states specified revised amounts for paragraph 9(1)(a) of the Act and paragraph 9(1)(b) of the Act, including the paragraph 9(1)(b) components. It also records $0.00 for the amounts referred to in paragraph 9(1)(c) and paragraph 9(1)(e) of the Act.

The revised estimate is then expressed as those specified revised amounts less the excess amounts referred to in the relevant excess amount section. This is an important point for businesses reading the instrument. The revised estimate is not just a simple total of the positive amounts listed in paragraphs (a) and (b). It is the result after subtracting the revised excess amounts stated for that sub-sector.

The instrument also makes clear that, for each of the four listed sub-sectors, the revised excess amount for the earlier levy period is $0.00. It then states a separate revised excess amount for the third levy period for each sub-sector. Those third-period excess amounts are the amounts that reduce the total of the specified revised amounts when arriving at the revised estimate.

The instrument sets the following revised estimates for the 2025-26 levy period.

For the credit intermediaries sub-sector, the determined revised estimate is $1,832,988.98. The specified revised amount for paragraph 9(1)(a) is $316,706.25. The specified revised amount for paragraph 9(1)(b) is $1,738,404.73, made up of $76,292.04, $1,020,446.02, $225,000.00 and $416,666.67. The amounts for paragraphs 9(1)(c) and 9(1)(e) are each $0.00. The revised excess amount for the earlier levy period is $0.00, and the revised excess amount for the third levy period is $222,122.00.

For the credit providers sub-sector, the determined revised estimate is $1,853,223.37. The specified revised amount for paragraph 9(1)(a) is $72,466.78. The specified revised amount for paragraph 9(1)(b) is $1,907,811.59, made up of $235,389.81, $1,030,755.11, $225,000.00 and $416,666.67. The amounts for paragraphs 9(1)(c) and 9(1)(e) are each $0.00. The revised excess amount for the earlier levy period is $0.00, and the revised excess amount for the third levy period is $127,055.00.

For the licensed personal advice sub-sector, the determined revised estimate is $67,288,986.33. The specified revised amount for paragraph 9(1)(a) is $57,522,421.29. The specified revised amount for paragraph 9(1)(b) is $11,068,815.04, made up of $8,000,914.49, $2,026,233.88, $625,000.00 and $416,666.67. The amounts for paragraphs 9(1)(c) and 9(1)(e) are each $0.00. The revised excess amount for the earlier levy period is $0.00, and the revised excess amount for the third levy period is $1,302,250.00.

For the securities dealers sub-sector, the determined revised estimate is $4,723,226.49. The specified revised amount for paragraph 9(1)(a) is $2,824,894.74. The specified revised amount for paragraph 9(1)(b) is $2,243,009.75, made up of $343,916.68, $1,027,426.40, $455,000.00 and $416,666.67. The amounts for paragraphs 9(1)(c) and 9(1)(e) are each $0.00. The revised excess amount for the earlier levy period is $0.00, and the revised excess amount for the third levy period is $344,678.00.

From a planning perspective, the licensed personal advice sub-sector has by far the largest revised estimate in this instrument. That does not mean an individual advice business owes that full amount, but it does show the scale of the revised sub-sector estimate for that part of the market. Businesses in any of the four sub-sectors should treat these figures as relevant to budgeting and governance, not as background information that can be ignored.

This determination is technical. It is not drafted as a plain-English notice to individual firms, and it does not set out every step needed to work out what a particular entity will pay. Its function is to determine revised sub-sector estimates and revised excess amounts under the statutory framework.

That means businesses should use the instrument in a practical way. First, confirm whether the entity is in one of the four listed sub-sectors. Second, identify the revised estimate and revised excess amount for that sub-sector. Third, check the parent Act and the Regulations before drawing conclusions about entity-level levy exposure, payment timing or calculation method.

For boards and finance teams, the instrument is useful because it updates the figures that sit behind the levy framework for the 2025-26 levy period. If your internal budgets, board papers, investor materials or due diligence packs still refer to earlier assumptions, they may need updating. If your business is in a sub-sector with a large revised estimate, it may be sensible to stress-test cash flow and make sure levy-related correspondence will be received and escalated promptly.

For smaller operators, the main risk is assuming this only affects large institutions. The instrument does not limit itself by business size. If your entity falls within a listed sub-sector under the Regulations, the issue is relevant whether you are a large group or a smaller regulated business.

The determination itself mainly sets figures, but it creates clear practical tasks for affected businesses. The first task is classification. Because the sub-sector definitions sit in the Regulations, a business should confirm its legal position rather than rely on broad descriptions of what it does.

The second task is financial planning. The revised estimate for the relevant sub-sector should be treated as a live input into budgeting and risk management for the 2025-26 levy period. The third task is process management. Levy-related notices and communications need to be received, reviewed and actioned by the right people inside the business.

The fourth task is record keeping. If your business has a mixed model or sits near the edge of two categories, keep a file note showing how classification was reached. The fifth task is reassessment. If your business changed structure, services or licence scope around the start of the levy period, revisit the analysis rather than assuming the position is unchanged.

The instrument is dated 1 July 2025. The Federal Register of Legislation entry shows it was registered on 3 July 2025. The commencement clause says the whole instrument commences on the day after registration, which means commencement is 4 July 2025 if the registration date shown on the Register is used.

The instrument defines the 2025-26 levy period as the 12-month period starting from 1 July 2025. It also notes that the 2025-26 levy period is the third levy period. The notes further state that this revised determination contains updated amounts for that period and is made under section 10 of the Act.

For business planning, the key point is that the levy period starts from 1 July 2025 even though the instrument commences after registration. Businesses should therefore make sure their FY2025-26 planning reflects the revised determination rather than relying only on earlier figures.

This page is based on the Federal Register of Legislation entry for the Financial Services Compensation Scheme of Last Resort Levy (Collection) (Revised Cost Estimates for 2025-26 Levy Period) Determination 2025, registered as F2025N00532 and shown as in force.

The instrument states that it is made under the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023. It also states that the four covered sub-sectors have the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023. Businesses should check those sources as well before relying on this page for a compliance decision.