Financial Services Compensation Scheme of Last Resort Levy (Collection)

Minister's second reading speech Australian Labor Party • MP • 08 Sept 2022

Stephen Jones supports the bill as part of the levy framework for the financial services Compensation Scheme of Last ResortThe backstop scheme that pays eligible consumers when a financial firm owes compensation under AFCA but still does not pay., explaining how the one-off and ongoing levies will be set and collected. He presents it as the mechanism that will fund compensation and administrative costs.

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

Second reading speech Australian Labor Party • MP • 28 Sept 2022

Stephen Jones supports the bill and says it is part of the package that creates the compensation scheme of last resortThe backstop scheme that pays eligible consumers when a financial firm owes compensation under AFCA but still does not pay. and improves consumer outcomes in the financial system. He argues it will ensure eligible consumers are paid, with industry funding the scheme.

“There's been quite some discussion about the Compensation Scheme of Last Resort, and I'd like to reiterate and clarify a few matters that have come up in the course of the debate. The government continues to build trust in Australia's financial system's external dispute resolution framework and remains committed to improving consumer outcomes. Establishing, for first time, the Compensation Scheme of Last Resort, or the CSLR, implements recommendation 7.1 of the banking royal commission. In doing so, it delivers on one of the key outstanding recommendations of the banking royal commission but also, as the member for Curtin alluded to in her address, the earlier Ramsay review under the former government.”

Second reading speech Liberal Party • MP • 28 Sept 2022

Taylor says the coalition will not oppose the bill and commends it to the House, but wants Parliament to scrutinise its impacts and is unhappy that the government expanded the package without consultation. He supports it as a continuation of royal commission reforms, while warning that the consumer credit changes need close monitoring.

“So whilst we won't deny the bill a second reading, it is important that the parliament assess and monitor the impacts of this change on consumers. Subject to those caveats, we commend the bill to the House.”

Second reading speech Liberal Party • MP • 21 Mar 2023

Taylor says the opposition will allow the bill to pass, but argues the government has mismanaged the legislation and damaged trust with its broader tax and spending agenda. He supports the compensation scheme in principle, while criticising the delay and the government's handling of the package.

“Whilst we won't deny this bill a second reading—it has taken way too long for the bill to get to this point anyway—we do call on the House to recognise the government's mismanagement of the bill, the government's dishonesty with the Australian people, particularly with respect to tax, and the need for the government to commit to reducing inflation and pressure on the cost of living by controlling its own spending, not by taxing Australians more.”