The Association of Superannuation Funds of Australia (ASFA) has hit back at Assistant Treasurer Daniel Mulino’s proposal today to apply the Compensation Scheme of Last Resort (CSLR) levy to Australian Prudential Regulation Authority (APRA)-regulated super funds.
Mulino stated industry and retail super funds will need to contribute to a “special levy” totalling $47.3 million for the CSLR over the 2026 financial year along with retail-facing sectors.
“Forcing 18 million Aussies who are super fund members to fund the CSLR will set a dangerous precedent,” ASFA chief executive Mary Delahunty warned.
“It risks treating retirement savings as a convenient pot of money for solving problems, rather than keeping super focused on providing a dignified post-working life for Australia’s retirees.”
Delahunty took the opportunity to remind the government the objective of superannuation is to preserve Australians’ savings to generate an income in retirement and using this money for other purposes could undermine trust in the system.
She also pointed out most fund members cannot benefit from the CSLR as super has its own compensation mechanism already paid for by this cohort under Part 23 of the Superannuation Industry (Supervision) Act.
“If super fund members suffer losses, it is through those arrangements, not the CSLR, that they may be compensated,” she explained.
“It is like being forced to pay for home insurance not only for your own house, but also for someone else’s house in another town.”
ASFA recognised the CSLR needs to be overhauled given future-year projections are only expected to grow, but suggested it is not fair or sustainable for the burden to be put on APRA-regulated super funds.
Instead, the superannuation industry peak body indicated preventive measures to protect investors from wrongdoing should be at the forefront of the government’s reform agenda.
“We need to reduce the compensation payable to investors in the first place by preventing the losses they could experience through things like lead generators, aggressive sales tactics and bad financial advice,” Delahunty said.
