The board for the Compensation Scheme of Last Resort has provided a $241 million estimate of the initial levy to fund claims from eligible consumers who suffered from financial misconduct.
The funds will be used for meeting compensation claims and in relation to complaints that were lodged with AFCA between 1 November 2018 and 7 September 2022.
It was the first estimate delivered under the legislative framework for the CSLR established in June 2023.
The initial levy estimate addresses most of the claims involving Dixon Advisory and Superannuation Services (DASS), which went into administration in January 2022.
The government will fund the body to establish the CSLR and first levy through to the end of FY24, but the scheme will be funded by the industry after that at the minister’s discretion.