CSLR Actuaries Report reveals much more pain to come
When the CSLR operator released the CSLR Levy Estimate for the 2025/26 year on 31 January 2025, the shocking number was the $70m cost to the financial advice profession in the 2025/26 financial year.
When you dig deeper into the numbers in this report, it paints an alarming picture of what the CSLR Levy could look like in 2026/27, if the Government does not fix the numerous problems with the CSLR. On the basis of our analysis, and particularly looking at the cost of the Dixon Advisory debacle, the cost for the financial advice profession in 2026/27 looks likely to be around $123m.
Across the next two financial years, the cost of the CSLR Levy to the financial advice profession could be $193m. This is around $12,500 per adviser. If this is not enough to force the Government to take quick action, then it is difficult to see what else it would take. As an absolute minimum, the financial advice profession should not be paying any more than the $20m sector cap in any one year. The sooner this commitment is made the better.
The big driver of costs in 2025/26 is United Global Capital (UGC). In this latest CSLR article from the FAAA, we have a quick look at the UGC collapse and the related property investment fund Global Capital Property Fund. It seems to be that same problematic business model of advice to recommend an SMSF, enabling the transfer of superannuation money and the recommendation of a related party property investment. UGC is responsible for $48m of the $70m cost in 2025/26.
By Phil Anderson
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