The Federal Government is undertaking a targeted consultation on the application of a special levy “waterfall framework” that is part of the Compensation Scheme of Last Resort. 

The CSLR operator advised in July that estimated claim costs for this financial year were $190.3 million, which exceeds the annual levy cap. But legislation provides for a special levy to fund excess costs so that the scheme can continue paying eligible consumers.  

The government’s package of reforms announced recently to strengthen the long-term sustainability of the scheme include the new waterfall framework to allocate special levy costs, which will be applied for the first time this year.   

Assistant Treasurer Daniel Mulino says the consultation will help inform both the final 2026-27 special levy determination and the future operation of the framework.  

The consultation closes on October 5. More details are available here.