Failed Super Fund or Adviser? The Compensation Scheme of Last Resort Is Paying Out — Are You Owed Money?

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Evidence-backed. Sourced from CSLR’s official levy estimates, Money Management’s reporting on Dixon Advisory payouts, Super Members Council and CPA Australia submissions on CSLR reform, BrightLaw and Mercer analysis of the CSLR Act 2023, and AFCA/ASIC guidance on complaint windows. General information only — not legal advice. Whether a specific complaint qualifies for CSLR depends on individual circumstances; consult a qualified financial complaints solicitor or community legal centre for a preliminary assessment. Last updated: June 2026.

⚡ Key Takeaways

  • The Compensation Scheme of Last Resort (CSLR) became law in 2023 and opened for claims on 2 April 2024. By 31 August 2025, it had paid 551 claims worth $54 million — including $36.7 million to victims of Dixon Advisory and Superannuation Services (291 claims). This is real money going to real people who lost retirement savings through failed advice. [7][8]
  • CSLR covers unpaid AFCA determinations from 1 November 2018 onwards — specifically for personal financial advice on relevant products (including super and SMSFs), some credit services, and certain securities dealing. It pays up to $150,000 per AFCA determination when the relevant firm is insolvent or has failed to pay. [1][2]
  • CSLR does not cover ordinary market losses, MySuper underperformance, or poor trustee investment decisions in a solvent fund. Your path to CSLR runs through an AFCA complaint — if you haven’t complained, CSLR cannot help you. [1][2]
  • CSLR’s FY26 initial levy estimate was $77.98 million — far above its original projections and driven almost entirely by financial advice complaints, including those related to the Shield and First Guardian collapses, which left thousands of super investors out of pocket by over $1 billion. The scheme is under financial and political pressure, with Treasury consulting on whether to change its scope, cap and funding model. [12][13][4]
  • Special complaint windows apply to some collapsed schemes: for example, AFCA reinstated United Global Capital’s membership until 31 March 2026 to allow Shield/First Guardian investors to lodge complaints. If you invested in these or similar schemes and haven’t yet complained to AFCA, you may have a narrowing window. [3]

Failed Super Fund or Adviser? The Compensation Scheme of Last Resort Is Paying Out — Are You Owed Money?

By The Fine Print editorial team  |  Last updated: June 2026  |  13 min read  |  ⚠️ Not legal advice

Australia finally has a compensation scheme for victims of failed advice firms — and it’s already paid tens of millions to people who lost their retirement savings through super-linked schemes. But the scheme is narrower than many people think, capped at $150,000, and only accessible through AFCA. If you lost money through bad SMSF advice, a property scheme, a Dixon Advisory product, or a similar arrangement since November 2018 — and the firm that advised you has since collapsed — you may already have a pathway to compensation. And if you’ve been waiting to see whether the scheme “works” before making a move, the numbers suggest it does. This guide explains exactly how the Compensation Scheme of Last Resort (CSLR) works, what it covers, what it doesn’t, and the three steps to check whether you’re owed money.

📋 What’s in This Guide

How the CSLR Works — The Essentials

The legal framework:

  • The Financial Services Compensation Scheme of Last Resort Act 2023 commenced 7 July 2023. CSLR opened for claims on 2 April 2024. [1][6]
  • CSLR covers unpaid AFCA determinations relating to: personal financial advice to retail clients on relevant products (including super and SMSFs); some credit provision and credit intermediary services; and certain securities dealing. [1][2]
  • The scheme applies to AFCA complaints made from 1 November 2018 onwards. [2]
  • Maximum payout: $150,000 per AFCA determination, when the relevant firm is insolvent or has failed to pay the AFCA determination. [2][1]

How it’s funded:

  • Annual levy on financial advisers, credit providers/intermediaries and securities dealers — from 2024–25 onwards. [6][8]
  • One-off “backlog” levy of ~$241 million on the 10 largest banking and insurance groups to clear pre-existing unpaid AFCA determinations. [6]
  • CSLR is not government-funded — it runs entirely on industry levies. [8]

What’s been paid so far:

  • By 31 August 2025: 551 claims paid, $54 million in total compensation. [7]
  • $36.7 million to 291 Dixon Advisory and Superannuation Services victims — the largest single tranche of CSLR payouts to date. [7]
  • FY26 initial levy estimate: $77.98 million to fund ~1,800 claims and pay compensation on 491 claims — almost entirely in the financial advice sub-sector. [12]

How It Helps — and Still Harms — Ordinary Australians

1. What you can get: a genuine backstop when your adviser’s firm collapses

Before CSLR, the outcome for victims of a collapsed adviser firm was bleak even if AFCA made a determination in their favour. If the firm had gone into liquidation, there was typically nothing left to pay the determination. AFCA had ruled; the money didn’t exist. CSLR closes that gap — specifically for situations where you lodged a complaint with AFCA from 1 November 2018, AFCA made a determination in your favour for a relevant product or service, and the firm can’t or won’t pay. In those circumstances, CSLR steps in and pays up to $150,000 of the unpaid determination. The Dixon Advisory payouts illustrate this in action. Dixon advised thousands of clients to invest in the Evans & Partners investment strategy through SMSFs. Many lost significantly more than $150,000 each. But for those who went through AFCA and received determinations, CSLR’s payment of up to $150,000 has provided real, meaningful compensation — money that without CSLR would have been a favourable ruling sitting in a drawer with no one to pay it. By August 2025, 291 Dixon-related claimants had received $36.7 million through CSLR. That’s an average of about $126,000 per claim — close to the maximum. [7][1][2]

2. What you can’t get: normal market losses, fund underperformance, or poor trustee decisions

CSLR’s scope is narrower than most people assume. It is explicitly limited to unpaid AFCA determinations in the covered categories (advice, credit, securities dealing). It does not cover: ordinary market losses in super funds or SMSFs — if your balanced fund went backward in a bad year, that’s not CSLR territory; underperformance of a MySuper product against a benchmark — even persistent, significant underperformance that APRA has flagged; or losses from a trustee making poor investment decisions in a solvent fund that continues to meet AFCA determinations. The critical filter: your path to CSLR runs entirely through AFCA. If you don’t have an AFCA determination — if you never complained, or you complained but AFCA ruled against you, or your complaint is about something outside AFCA’s jurisdiction — CSLR has nothing to assess. The scheme is a “last resort” in the literal sense: the last step in a chain that must start with an AFCA complaint and end with an unpaid determination. [1][2][8]

3. The cap means most major super disasters leave victims under-compensated

The $150,000 cap per AFCA determination is a significant limitation for super-linked scheme victims. Many of the investors who lost money through schemes like Shield, First Guardian, Dixon Advisory or similar property and debt arrangements held through super platforms lost considerably more than $150,000. In some cases, individual losses ran to several hundred thousand dollars — entire retirement savings built over decades. CSLR’s maximum payout of $150,000 is life-changing for many smaller-loss claimants and genuinely valuable for those who lost amounts near the cap. For those who lost three or four times that amount, CSLR provides partial relief but leaves a substantial uncompensated gap. The options for the remainder are to pursue the fund, platform or related trustee through civil litigation — which is expensive and uncertain — or to join a class action where one exists. The CPA Australia joint submission on the post-implementation review acknowledges this gap and calls for a higher cap; the government’s review of CSLR’s scope and funding model (ongoing in 2026) is partly driven by this inadequacy. [9][4][12]

4. Special windows exist but are closing — act now if you haven’t

AFCA and ASIC have extended or reopened complaint windows for some collapsed schemes. The most notable: AFCA reinstated United Global Capital’s membership until 31 March 2026 specifically to allow investors in Shield Master Fund and First Guardian Master Fund — both of which were accessible via super platforms including Equity Trustees, Macquarie, Netwealth and Diversa — to lodge AFCA complaints. For investors in these schemes who haven’t yet complained, that window may now be closed or extremely narrow. The lesson is not just about UGC — it’s about the pattern. When scheme operators collapse, AFCA may create special windows to allow complaints after normal time limits have passed. If you invested in a boutique property fund, credit scheme, or managed investment scheme through a super platform and the operator has collapsed, check whether ASIC or AFCA has announced an extended complaint period. This is the kind of thing that gets one press release and then quietly closes. Missing it is the difference between a claim and nothing. [3][4]

The 2023–2026 Timeline: Dixon, Shield and the Levy Wars

  • 2023: CSLR legislation passes with bipartisan support following the Banking Royal Commission recommendation. The scheme commences 7 July 2023. [1]
  • 2 April 2024: CSLR opens for claims — initially processing the backlog of unpaid AFCA determinations since 1 November 2018. [6]
  • 2024–25 (first payouts): CSLR pays hundreds of claims; the majority by value are Dixon Advisory-related ($36.7M to 291 claimants by August 2025). [7]
  • 2024–25 (Shield and First Guardian collapse): Thousands of super investors lose over $1 billion through Shield and First Guardian managed investment schemes accessed via super platforms. ASIC investigates platform trustees (Equity Trustees, Macquarie, Netwealth, Diversa). AFCA creates special windows. [3][4]
  • 2025 (levy shock): CSLR’s FY26 initial levy estimate of $77.98 million vastly exceeds the $20 million financial advice sub-sector levy cap, implying a special levy. The Government and Treasury begin consulting on whether super funds should contribute to CSLR funding — fiercely opposed by the Super Members Council. [12][4][5]
  • 2026 (review underway): Government reviews CSLR’s $150k cap, narrow scope and funding model, driven by Shield/First Guardian losses and growing levy burden. No legislative changes yet but the political momentum for reform is clear. [9][13]

✅ Your Three-Step Action Plan

Action 1: Check whether you had advice or investments with a failed firm since November 2018

Go back through your records — statements, Statements of Advice, platform login emails, super fund correspondence — for any of the following since 1 November 2018: personal financial advice about super, SMSFs or investment products from a licensed adviser or advisory firm; investments in schemes like Dixon Advisory-managed products, Shield Master Fund, First Guardian Master Fund, or other boutique property or credit funds held inside or outside super; or advice that pushed you into setting up an SMSF specifically to hold a particular investment. Identify the AFSL holder (the licensed entity) and the specific products involved. Then check whether that AFSL has since been cancelled, the firm placed in administration or liquidation, or the operator lost its licence. ASIC maintains a public register of current and cancelled AFSLs on asic.gov.au. If the firm has collapsed and you suffered a loss, you are at the starting point for a potential AFCA complaint that could lead to CSLR compensation. The connection you’re trying to establish is: bad advice on a relevant product → loss → insolvent or non-compliant firm. If all three elements exist, the CSLR pathway is open to you — contingent on AFCA making a determination in your favour. [1][2][3]

Action 2: Lodge (or update) an AFCA complaint — CSLR cannot help without it

CSLR’s entire mechanism depends on AFCA complaints. If you haven’t complained, CSLR has no basis to assess or pay anything. Lodging a complaint with AFCA (at afca.org.au) is free, and for super and financial advice complaints there is no dollar cap on AFCA determinations. The complaint should specify: what advice or product you received and from whom (including the AFSL name and representative who gave the advice); why you believe the advice was inappropriate, misleading or conflicted — for example, it didn’t consider your circumstances, the adviser had a financial interest in the recommendation, or the product wasn’t suitable for your situation; and the approximate loss you suffered, with supporting evidence (account statements, SOA, correspondence). For specific schemes with extended complaint windows — check AFCA’s and ASIC’s communications for any announcements about reinstated memberships or extended deadlines. These windows are time-sensitive. If AFCA issues a determination in your favour and the firm cannot or will not pay, AFCA refers the unpaid determination to CSLR for assessment. At that point, CSLR assesses your claim and pays up to $150,000 if you’re eligible. [1][2][3][4]

Action 3: If you already have an unpaid AFCA determination, contact CSLR directly

If you already have an AFCA determination in your favour and it hasn’t been paid — because the provider is insolvent, in liquidation, or simply refusing to comply — you may be eligible for CSLR payment right now without any further AFCA process. Visit cslr.org.au and review the “Am I eligible?” section and the claims process. Be ready with your AFCA case number and determination, evidence of non-payment (liquidator correspondence, returned emails, an AFCA notification that the determination is unpaid), and proof of identity. CSLR will assess your claim and, if eligible, pay up to $150,000 against the unpaid determination. Critically: receiving CSLR payment does not prevent you from pursuing the remaining loss through other channels. If your total loss exceeded $150,000, you can still pursue the additional amount through civil litigation against the insolvent firm (via its liquidator in the distribution of remaining assets), through a class action if one exists against a platform or trustee, or through a direct complaint against any other party (the fund, the platform, a related entity) who had obligations to you and failed to meet them. CSLR is the “last resort” — it doesn’t exhaust your other rights. [1][2][9]

❓ Frequently Asked Questions

What is the CSLR?

A statutory scheme paying up to $150,000 per AFCA determination when a financial services firm is insolvent or fails to pay. Established by the Financial Services Compensation Scheme of Last Resort Act 2023; opened for claims 2 April 2024; paid 551 claims worth $54M by August 2025. [1][7]

Who is eligible?

Three requirements: (1) AFCA complaint from 1 November 2018 or later; (2) AFCA determination in your favour for a relevant product (super, SMSF, some credit/securities); (3) firm insolvent or not paying the determination. Ordinary market losses and MySuper underperformance are not covered. [1][2]

How does CSLR interact with AFCA?

CSLR only pays unpaid AFCA determinations. You must complain to AFCA first (free, afca.org.au), receive a favourable determination, and the firm must fail to pay it. AFCA then refers the unpaid determination to CSLR. No AFCA complaint = no CSLR pathway. [1][2]

What if my loss was more than $150,000?

CSLR pays up to $150,000. For the remainder, you can pursue civil litigation against the firm in liquidation, join a class action against a platform or trustee if one exists, or complain against other parties (fund, platform, related entities) with obligations to you. CSLR payment does not exhaust your other legal rights. [1][2][9]

What are Shield and First Guardian and why do they matter for CSLR?

Managed investment schemes accessible via super platforms (Equity Trustees, Macquarie, Netwealth, Diversa) that collapsed leaving thousands of investors out of pocket by over $1B total. AFCA reinstated UGC’s membership until 31 March 2026 to allow complaints from investors. Qualifying complaints with unpaid determinations may access CSLR up to $150,000. [3][4]

⚖️ The Fine Print Verdict

The CSLR is a genuine improvement on what existed before. Prior to April 2024, an AFCA determination against a collapsed firm was worth the paper it was printed on — favourable ruling, zero money. CSLR changes that for eligible claimants. The Dixon Advisory payouts prove it works in practice. But the scheme is under strain — FY26 projections of $77.98 million are far higher than anticipated, the $150,000 cap is inadequate for many major super losses, and the political fight over whether super funds should subsidise advice industry failures is ongoing. For members who lost money through SMSF advice, property schemes or other advice-linked arrangements since November 2018, the practical message is: the window to pursue compensation exists, AFCA is the required first step, and CSLR can pay up to $150,000 on an unpaid determination. Many people who qualify haven’t connected those dots. If you have records of advice that cost you money and the firm has since collapsed — don’t wait for a class action to materialise or for the government to change the cap. The process that exists right now is working. Start the AFCA complaint.

👉 Go to afca.org.au. If you lost money through bad SMSF advice, a property scheme, or a Dixon-type arrangement since November 2018 — and the firm has collapsed — lodge a complaint today. CSLR cannot help you unless you do.

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📚 Sources & References

  1. BrightLaw, “Financial Services Compensation Scheme of Last Resort,” brightlaw.com.au
  2. Mercer, “Australia moves forward on Compensation Scheme of Last Resort,” mercer.com
  3. AFCA/ASIC, “CSLR and Shield/First Guardian — complaint windows,” (video guidance)
  4. Yahoo Finance, “Battle over plan to tap $4.3 trillion to fund compensation scheme,” au.finance.yahoo.com
  5. Super Members Council, “CSLR reform options — Treasury submission,” superannuation.asn.au (May 2026)
  6. MFAA, “Compensation Scheme of Last Resort — commencement of levies,” mfaa.com.au
  7. Money Management, “CSLR pays out $36m to Dixon Advisory victims,” moneymanagement.com.au
  8. CSLR, “How we’re funded,” cslr.org.au
  9. CPA Australia et al., “Joint submission — CSLR post-implementation review,” cpaaustralia.com.au (August 2025)
  10. ATO, “Financial Services Compensation Scheme of Last Resort Act 2023 — Regulations,” ato.gov.au
  11. Super Members Council, “CSLR post-implementation review — Treasury submission,” superannuation.asn.au (May 2025)
  12. CSLR, “FY2026 initial levy estimate,” cslr.org.au
  13. CSLR, “FY2026 revised estimate — 3rd levy period,” cslr.org.au (July 2025)

This article is general information only and does not constitute legal or financial advice. Whether a specific complaint qualifies for CSLR depends on individual circumstances including the date of the AFCA complaint, the product type, the firm’s status, and the AFCA determination. Before lodging formal complaints or pursuing compensation, consult a qualified financial complaints solicitor or contact a Community Legal Centre for a free preliminary assessment. Information is current as at June 2026. The Fine Print 🇦🇺 is not affiliated with CSLR, AFCA, ASIC or any fund or firm mentioned in this article.

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