Superannuation trustees, including SMSFs, will be required to contribute nearly $24 million to fund the shortfall in payments from the Compensation Scheme of Last Resort (CSLR) under plans that would include managed investment schemes (MIS) and a modest special levy for financial advice practitioners.
The proposed levies are part of a Treasury consultation paper with regard to distributions of the 2026/27 special levy for the CSLR and to gather stakeholder feedback on application of the levy waterfall framework.
The paper stated the special levy for Tier 1, which covers financial advisers and their licensees, will be $10 million for a total CSLR contribution of $30 million inclusive of the $20 million annual levy.
Tier 2 sub-sectors for the 2026/27 financial year will include the responsible entitles of MIS which will be required to pay the full amount of the levy for that sub-sector of $40 million.
The consultation paper noted this levy has been raised because “based on publicly available evidence, the responsible entities sub-sector is substantively connected to the losses” arising from the Dixon Advisory and Shield and First Guardian master fund situations.
The remaining $120.262 million of the $170.262 million shortfall revealed earlier this year will be allocated to 21 retail-facing Tier 3 sub-sectors who have not reached their levy cap, with superannuation trustees set to be charged a collective $23.79 million.
While the paper does not specifically name SMSFs under Tier 3, Financial Services Minister Daniel Mulino indicated in a speech on 19 August the sector would be included in this cohort of special levy financial contributors for the CSLR. This was also in a Treasury fact sheet published that day.
In releasing the paper, Mulino said: “The consultation paper does not revisit the decision to adopt the waterfall framework. It is a targeted consultation which seeks stakeholder views on the application of the framework to the 2026/27 special levy, including the operation of the first and second tiers of the waterfall and related levy allocation issues.”
“As this will be the first application of the waterfall framework, stakeholder feedback will help inform both the final 2026/27 special levy determination and the future operation of the framework.”
The consultation closes on 5 October 2026.