FAAA warns adviser levies could exceed $5k as ASIC costs climb

Financial advisers could face more than $5000 in combined regulatory levies this financial year, with the Financial Advice Association Australia (FAAA) warning rising ASIC and Compensation Scheme of Last Resort (CSLR) cost are placing unsustainable pressure on small advice businesses.

The industry body said the estimated 27% increase in the ASIC funding levy, combined with the recently announced CSLR special levy, could leave advisers paying more than $5000 each, renewing called for government reform of both funding arrangements.

The comments follow ASIC's release of its 2025-25 Cost Recovery Implementation Statement, which lifted the regulator's estimated recoverable costs to $400.5 million as it expands supervision and enforcement activity.

The FAAA estimates advisers will pay $3037 through the ASIC funding levy, alongside the existing CSLR levy and a share of the FY27 CSLR special levy, which totals $170.3 million across the industry.

"Government levies could reach well over $5000 per adviser this year," the FAAA said.

The association said the combined burden was "a crippling cost imposed on a sector that is almost entirely made up of small businesses" and highlighted the need for the government to address the long-term sustainability of the CSLR.

The FAAA also questioned the sharp rise in ASIC's enforcement costs, which it said were the largest contributor to the higher levy.

"The information provided by ASIC has no meaningful explanation of the reasons for this increase or where the $24 million cost of enforcement was spent," the FAAA said.

The association reiterated its longstanding position that court-imposed penalties secured through ASIC enforcement should be used to offset both the ASIC funding levy and CSLR costs, noting more than $800 million in fines had recently been awarded.

"It is unreasonable for the financial advice profession to fund this enforcement activity, when all fines are paid straight to Consolidated Revenue for the benefit of the government," the FAAA said.

The body also renewed calls for greater transparency around ASIC's cost allocation methodology and urged the government to implement Treasury's 2023 recommendations to reform he ASIC industry funding model.