The CSLR levy funds compensation for eligible consumers with unpaid financial complaint determinations. For mortgage brokerages, direct credit-intermediary liability sits with the qualifying credit licensee. A broker working under another entity’s licence can instead receive a contractual share of that licensee’s costs.
For 2026-27, ASIC’s published annual credit-intermediary levy is $100 plus $37 per credit representative, using the relevant historical metrics. A special levy is a separate component. Identify the funding year and the liable entity before comparing a bill with another broker’s amount.
What the CSLR Levy Funds
The Compensation Scheme of Last Resort (CSLR) pays eligible compensation after a financial firm fails to pay an Australian Financial Complaints Authority (AFCA) determination. An unpaid determination can arise when a firm becomes insolvent. The scheme covers specified financial services, including credit intermediation.
The scheme operator estimates its funding needs and administers compensation claims. The Australian Securities and Investments Commission (ASIC) calculates individual levies, issues notices and collects payment. ASIC’s CSLR overview explains those responsibilities.
A levy notice funds the scheme across the liable industry population. Receiving one does not mean a customer has complained about your brokerage or that you caused the unpaid loss.
The separate ASIC industry funding levy recovers ASIC’s regulatory costs. Both can come from ASIC, so identify the charge by the notice’s levy description, not its sender.
Who Pays in the Credit Intermediary Subsector
A credit intermediary is a licensee authorised to conduct credit activities other than as a credit provider. Section 25 of the ASIC levy regulations defines that population. The CSLR annual rules also require the relevant AFCA membership obligation.
The credit licensee and its appointed credit representatives are different entities. Holding a representative appointment alone does not make the representative the credit licensee liable for this annual levy. The Australian credit licence operating model determines which entity holds the licence behind your broking work.
Your business can still bear a cost under its agreement with a licensee or aggregator. Ask which clause permits the allocation and how the amount was divided. That invoice remains a contractual charge, even if its description says CSLR levy.
An entity operating in another regulated capacity can owe another subsector levy. For example, a business authorised as both a credit intermediary and a credit provider can have separate liabilities. Check every line against that entity’s authorisations.
Annual Funding, Increases and Special Levies
The annual CSLR levy starts with the operator’s estimated claims and scheme costs for each subsector. The estimate becomes an official funding instrument. ASIC then applies the statutory calculation to the relevant population and historical business metrics before issuing individual notices.
A funding increase can change the amount shared across a subsector. It does not give every brokerage the same dollar increase. The relevant period, allocation and each entity’s calculation inputs determine its share.
The ordinary annual levy has a $20 million subsector cap. A further levy can address an increased estimate within that cap. A special levy requires a ministerial determination specifying the contributing subsectors and their allocations, followed by the parliamentary process.
Funding Years and Published Charges
| Component | Period | Published credit-intermediary figure | How to use it |
|---|---|---|---|
| Annual levy | 2025-26 | $100 plus $52.04 per credit representative | Use the 2023-24 qualifying metrics |
| Annual levy | 2026-27 | $100 plus $37 per credit representative | Use the 2024-25 qualifying metrics |
| Special levy | 2025-26 | $5.72 per credit representative | Check the separate special component using its qualifying metrics |
| Registered special levy determination | 2026-27 | $7,789,164.69 allocated across the credit-intermediary subsector | This is a subsector total, not an individual brokerage charge |
ASIC publishes the annual levy summary, prior annual summaries and special levy summary. Its published rates are rounded. CSLR levies are not subject to GST.
The Federal Register lists the 2026 special levy determination as in force. It specifies the 2026-27 credit-intermediary allocation. The instrument provides for commencement through the statutory parliamentary disallowance process. Your individual amount and payment deadline still come from ASIC’s assessment and notice.
The operator’s FY2027 funding estimates show the scheme-wide estimate rising from about $137.5 million initially to $198.1 million on revision. Those estimates describe funding needs. A consultation proposal describes a possible allocation. Use the registered determination and ASIC’s applicable notice to establish the charge your entity must pay.
Check the Levy for a Mortgage Brokerage
Reconcile the notice against the same legal entity and historical inputs ASIC uses. Have the notice, licence records and relevant submitted business activity information beside you.
- Match the legal entity. Check its registered name and Australian Company Number or Australian Business Number. A trading name shared by related companies does not establish liability.
- Match the licence or registration reference. Confirm the number belongs to that entity, then check the authorised activities and any relevant licence variation or cancellation.
- Identify the subsector. Separate credit intermediation from credit provision and financial advice. An adviser count is not the credit-intermediary measure.
- Identify the funding period. Find the qualifying year for that levy component. A lower representative count today does not replace the required historical count.
- Separate the components. Identify annual, further or special amounts, along with any penalties or other subsector charges. Use the instrument and schedule for that component.
- Reconcile the calculation. Compare the qualifying year-end credit representative count and relevant licence days with the records behind the notice. Record the expected amount and explain any difference.
Section 12 of the CSLR Levy Regulations uses the qualifying year-end credit representative count. Where the relevant licence was held for only part of that year, the rules adjust the metric for licence days. Use the statutory formula and rounding rules for a part-year calculation.
Hypothetical Full-Year Reconciliation
Assume a brokerage held the relevant credit licence throughout 2024-25 and had eight credit representatives at that year’s end. It receives a 2026-27 annual credit-intermediary assessment, with no other subsector charges or penalties.
Using ASIC’s published rounded rate, the calculation is $100 + (8 × $37) = $396. This checks the annual component only. Add a special levy only when the applicable special assessment establishes its amount.
Incorrect check: multiply eight by the financial-adviser rate because the brokerage has eight brokers.
Correct check: use the credit-intermediary rate and the qualifying credit representative count. The two subsectors have different measures and charges.
For a licensee or aggregator invoice, reconcile its allocation separately. Compare the billed period with the agreement’s cost-recovery clause, allocation method and any supporting schedule. A charge divided among brokers under that agreement does not have to equal an ASIC per-representative rate. Ask for the underlying calculation before accepting an unexplained difference.
Pay, Correct or Query a Notice
Verify the charge through ASIC’s official channel before paying. Open the ASIC Regulatory Portal directly and select the relevant entity. ASIC’s CSLR FAQs direct users to Administration, then Billing and CSLR levy and reminder notices.
Match the notice number and payment reference with the notice available through that channel. Use its payment instructions and allow the stated processing time. Keep the notice, supporting calculation and payment receipt together. Check that the payment is allocated to the correct entity.
An unexpected amount needs a written reconciliation. For a wrong entity, attach the licence and company records identifying the mismatch. For a disputed classification, attach the relevant authorisations and variation records. A disputed count needs the qualifying-year records supporting the correct figure.
Send a CSLR enquiry to ASIC. ASIC directs enquiries through Credit Licence or Financial Services Licence, then CSLR. Give the notice reference and requested correction, and ask ASIC to identify any applicable review route and deadline. AFCA handles financial-services complaints. It does not correct an ASIC levy assessment.
ASIC’s notice and payment guidance sets out separate payment-plan and waiver applications. A waiver needs exceptional circumstances and supporting evidence. Review of a waiver decision starts with a further waiver application. ASIC also identifies Administrative Review Tribunal review after its internal review.
CSLR notices are generally payable within 30 days of issue. An ordinary query does not itself extend that deadline. Check the notice’s payment and review instructions, and obtain written confirmation of any changed arrangement. ASIC’s late-payment rules specify a 20% annual penalty, calculated monthly. For a formal waiver application, follow ASIC’s separate instructions about withholding payment and suspended penalties while it considers the application.
