Super funds should not pay special levy: SMC

The Super Members Council (SMC) is urging the government to carve out APRA-regulated super trustees’ responsibility in the FY27 Compensation Scheme of Last Resort (CSLR) special levy, claiming that it will be a “clear breach” of the scheme’s principle otherwise.

- Matthew Wai

The SMC pointed out that the scheme is intended to be funded by the sectors that see the most misconduct. It said that by spreading excess costs across “unrelated” sub-sectors, the government is embedding moral hazard, potentially escalating riskier behaviour, weakening accountability, and providing less consumer protection in the future.

Especially for APRA-regulated super funds, the SMC said, as they must keep money aside for emergencies and follow strict rules to protect their members.

The answer to the Shield and First Guardian collapses is not to send the bill for those risks to millions of everyday Australians in the mainstream super system, the SMC argued, which would force up to 12 million Australians to contribute.