Regulatory reform omnibus bill passage trims CSLR levy disallowance period, payouts

The passage of Regulatory Reform Omnibus Bill 2026 overnight will amend how levies are collected under the Compensation Scheme of Last Resort (CSLR) and pay compensation to eligible victims more quickly.

The package of reforms was passed by both houses on September 14. One section of the legislation reduces the disallowance period of the CSLR special levy instruments while retaining parliamentary oversight.

Currently, ASIC does not collect special levies until the 15 sitting day disallowance period has expired, due to the risks of invoicing entities for amounts that are subsequently amended, reduced or disallowed.

This will now reduce the disallowance period for CSLR levy instruments from 15 sitting days to five sitting days in each House of Parliament.

A new estimate for the FY27 CSLR levy has increased for the financial services sector to $198.1 million, a $60.7 million increase from its initial estimate announced in November 2025.

A large portion of claims relate to Dixon Advisory, while the estimate also includes the first tranche of some 474 claims stemming from the collapses of the Shield and First Guardian master funds. These represent over $30.1 million in gross claim payments according to data provide by the CSLR.

Melinda Kee, who spearheads the advocacy group SOS Save Our Super, previously told Financial Standard her concerns lay in the gaps between the Australian Financial Complaints Authority (AFCA), the CSLR and the funding.

"Victims shouldn't get through one hurdle only to find another one waiting for them. We know there are a lot of claims coming. The CSLR needs to be able to flag the need for funding earlier, rather than waiting until the pressure is already there," she said.

More broadly, the bill aims to simplify regulation, particularly for businesses, and progress additional measures to support the government's "tell us once" agenda, which will cease people and businesses entering the same information more than once when interacting with government agencies.

Minister for financial services Daniel Mulino said that when Labor's agenda is fully implemented, he expects a $10.2 billion reduction in the regulatory burden every year.

The bill will also simplify business reporting requirements.

"It will simplify workplace gender equality reporting and target-setting requirements by adding a 12-month window at the end of a target cycle. Not only must they finalise their data and reporting for the current cycle; they must also select new targets for the next cycle," he said.