Financial Services Compensation Scheme of Last Resort Levy 2021

# Financial Services Compensation Scheme of Last Resort Levy (Collection) Bill 2021 ## What it does This bill sets up the rules for collecting a new levy (a kind of tax) from financial services companies to pay for AFCA—the Australian Financial Complaints Authority, which handles disputes between customers and their banks, insurers, and investment firms. The levy covers AFCA's operating costs and any complaints they haven't finished resolving yet. ## Why it matters When a financial company goes bust, AFCA is often the only place customers can turn to get compensation. This levy ensures AFCA has the money to do that job, rather than leaving it to taxpayers. It essentially makes the financial services industry pay for its own disputes instead of the public footing the bill. ## Key details - **Who pays**: Financial services businesses (banks, insurers, investment advisers, etc.) must provide information about themselves and pay the levy when the government asks. - **Late payment penalties**: If a company doesn't pay on time, they'll face penalty charges on top of the original amount owed. - **Enforcement powers**: The government can demand detailed information from companies and take action to recover unpaid levies, with review options available if a company disagrees with a decision.

🔒 Voting closed — this bill has been decided by parliament