Financial Advice Association Australia has hit out at the corporate regulator over a projected rise in 2025-26 levies.

The Australian Securities and Investments Commission estimates the financial advice sector will pay about $62.62 million under the cost recovery funding model to support its supervision work.

Licensees providing personal advice to retail clients will pay most of the levy – about $48.72 million, or a minimum of $1500 plus $3037 per adviser.

In 2024-25 the levy was $39.27 million, or $1500 plus $2314 per adviser.

The association says government levies could exceed $5000 per adviser this year if additional charges for the Compensation Scheme of Last Resort are included.

“This is a crippling cost imposed on a sector that is almost entirely made up of small businesses,” the FAAA said. “It underscores the critical importance of the government taking action to address the sustainability of the CSLR and to reduce these levies.”

The association says it is particularly concerned by the rise in the ASIC levy estimates.

“We repeat our previous calls for improved transparency from ASIC on how it allocates costs, and for Treasury’s recommendations for changes to the ASIC industry funding model – handed down in June 2023 – to be implemented,” the FAAA said.

ASIC expects to collect $400.52 million in levies for its regulatory work in 2025-26, according to its cost recovery implementation statement last week.

The insurance sector, comprising life and general entities, is in line to contribute $23.83 million.

ASIC aims to release the actual charges in December before sending 2025-26 levy notices in the first quarter next year.