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Wednesday, 8 March 2023
Page: 1453

Mr JONES (Whitlam—Assistant Treasurer and Minister for Financial Services) (09:31): I move:

That this bill be now read a second time.

This bill is the second of two bills which form the levy framework for the financial services Compensation Scheme of Last Resort (CSLR).

As noted previously, the Commonwealth will fund the establishment of the CSLR, which is intended to be operational from December 2023, if the bill is passed through both houses of parliament by March. The Commonwealth will also fund the scheme's initial operation until 30 June 2024.

A one-off levy to fund the back log of Australian Financial Complaints Authority (AFCA) complaints that are expected to be eligible to claim on the CSLR will be issued by December 2023. This levy will be payable in two instalments.

The ongoing annual levy to fund the 2024-25 financial year will be issued by May 2024. The ongoing annual levy will then be issued in advance of each following financial year.

In advance of the issuing of a levy, the CSLR operator will determine the amount to be raised through the levy. The CSLR operator's determination will include, as relevant, estimated compensation claims and AFCA fee costs and associated administrative costs. The CSLR operator's determinations will be disallowable.

Levy notices will be issued by the Australian Securities and Investments Commission in accordance with primary law, regulations and the CSLR operator's determination. ASIC will collect the levies and have the power to facilitate and enforce the payment of levies. These powers include the ability to seek information from relevant entities for the purpose of correctly calculating an entity'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.

Debate adjourned.