Thursday, 8 September 2022
Financial Services Compensation Scheme of Last Resort Levy (Collection) Bill 2022; Second Reading
That this bill be now read a second time.
The one-off levy imposed for the first year of operation, 2023-24, will be issued by August 2023, and the ongoing annual levy will be issued in advance of each new financial year, with the first to be issued from January 2024 for the 2024-25 financial year.
The CSLR operator will estimate compensation and AFCA complaint costs to be paid out in the upcoming financial year as well as associated administrative costs. These estimates will then determine the total levy amount for each sub-sector to meet expected outlays in the upcoming financial year.
Levy notices will be issued by the Australian Securities and Investments Commission. ASIC will also be responsible for the collection of levies and have the power to facilitate and enforce the payment of levies. These powers will include the ability to seek information from relevant firms for the purpose of correctly calculating the firm's levy, to impose penalties for late payment and to impose a shortfall penalty where incorrect information has been provided.
Full details of the measure are contained in the explanatory memorandum.