Proposed financial institutions supervisory levies for 2026–27

Australians deserve a world-class super system with their interests, and the safety and strength of their retirement savings, at its very heart. That vision relies on a strong, efficient and cost-effective regulatory framework as the foundation for system-wide consumer protections and financial stability. To that end, SMC considers a proposed 11.3% rise in the 2026–27 financial institutions supervisory levy warrants careful examination against the tests of necessity, proportionality, efficiency and value for money for members, whose compulsory retirement savings fund all such levies. Each year, Treasury proposes the amount of supervisory levies to be paid by members of super funds. It has foreshadowed levies of $125.2 million in 2026–27 — a proposed levy rise of 11.3 per cent or $12.7 million on the $112.5 million paid in 2025–26. This is 42.1 per cent of total financial institutions supervisory levies.

These costs are ultimately paid by super fund members from their compulsory retirement savings. It is therefore essential that Treasury carefully assesses any proposed levy increases and publishes clear detail on the measurable additional benefits it will deliver. That includes assessing whether higher-risk pockets of financial services are bearing a proportionate share of levy costs relative to low-risk areas. SMC makes six recommendations to strengthen the transparency and accountability of the supervisory levy framework and looks forward to engaging constructively with Treasury on implementation.