Financial Services Compensation Scheme of Last Resort Levy Act 2023

Here is the summary of the Financial Services Compensation Scheme of Last Resort Levy Act 2023 in 150-200 words:

This Act imposes a levy on persons relating to the Australian Financial Complaints Authority (AFCA) scheme. The levy is intended to compensate scheme members for unpaid claims and AFCA's unpaid fees, as well as for complaints given to AFCA before the accumulation recovery day.

The Act has three main parts: Preliminary, Levy, and Other Matters. The Preliminary part defines key terms, including "accumulation recovery day" and "sub-sector". The Levy part imposes levies on persons in various circumstances, including when a revised claims, fees and costs estimate exceeds the sub-sector levy cap.

The Act also includes caps on levy, with a total scheme levy cap of $250 million. Sub-sectors are subject to separate caps, which must not be exceeded. The Act applies to persons who are members of a sub-sector or meet certain conditions, including being a body regulated by APRA or having income above a certain threshold.

The levy is payable by the person and may be split into two instalments for the first levy period. The Act requires regulations to be made to implement the Levy part, with objectives that include not exceeding the initial claims, fees and costs estimate or the sub-sector levy cap.