Submission – Compensation Scheme of Last Resort (CSLR): exceeding sub-sector levy caps

The Super Members Council (SMC) does not support the consultation’s proposal to extend the Compensation Scheme of Last Resort (CSLR) to sectors that include superannuation trustees operating default MySuper products.

We do support the need for a functioning CSLR. If Government determines additional funding is necessary in the current year, this could more fairly be sourced through unclaimed superannuation that has reached its statutory limit. It is also our view there will be continuing financial pressure on the CSLR if regulatory gaps are not fixed. Treasury should closely examine any regulatory gaps across financial advice, platform product selection, and anti-hawking laws, to stop future consumer harms.