Chartered Accountants Australia and New Zealand, CPA Australia, the Financial Planning Association, the Institute of Public Accountants and the SMSF Association support the implementation of a ‘true’ compensation scheme of last resort.

We recommend that:

• The funding model is amended to charge a flat levy to all participants in the sub-sector, but only charge the graduated levy to those who have AFCA cases in progress, which have passed the merits assessment and have a finding in favour of the complainant
• Amendments are made to apply the applicable levy to a sub-sector participant who meets the criteria at any time during the qualifying period
• Further clarity be provided regarding the recovery of the annual levy from deregistered persons
• The CSLR Operator be required to report additional information when seeking approval for a further special levy, including why the sub-sector cap levy has been exhausted and the efforts made by AFCA to recoup unpaid determinations
• Additional reporting obligations on the CSLR Operator at the end of each levy period, including the underlying reasons why compensation arrangements remain unpaid, and the sub-sectors deemed at fault.