Financial Services Compensation Scheme of Last Resort Levy (Collection) 2023

# Financial Services Compensation Scheme of Last Resort Levy (Collection) Bill 2023 **What it does** This bill sets up the rules for collecting a levy (a type of tax) from financial services companies to fund AFCA — the Australian Financial Complaints Authority, which handles disputes between customers and banks, insurers, and investment firms. The legislation spells out how much companies owe, when they have to pay, and what happens if they don't. **Why it matters** When a financial services company goes bust and can't compensate customers they've wronged, AFCA's compensation scheme steps in as the last resort. This levy funds that safety net, so it ultimately protects your money if something goes wrong with your bank or financial adviser. Without it being properly collected, there's less money available to help people who've lost out. **Key details** - **Who pays**: Financial services providers (banks, insurers, investment advisers) — not individual customers - **Penalties for late payment**: Companies that don't pay on time face late payment penalties, and if they underpay, they face shortfall penalties too - **How it's calculated**: The government estimates claims and costs each levy period and sends companies that information upfront so they know what they owe - **Dispute options**: Companies can request internal review of decisions or appeal to the Administrative Appeals Tribunal if they think they've been treated unfairly

🔒 Voting closed — this bill has been decided by parliament