Super Alert – 24 September 2026: Treasury on Compensation Scheme of Last Resort’s 2026-27 special levy, AFCA independent review 2027

Welcome to the weekly KHQ Super Alert. This week, Treasury released a consultation on the application of the Compensation Scheme of Last Resort’s 2026-27 special levy. ASIC published a speech highlighting the role of superannuation trustees in overseeing private credit assets and a report following a review of sustainability reports for the 31 December 2025 period. AFCA confirmed that it has begun preparations for its independent review in 2027.

ASIC – Regulator calls for superannuation trustees to have better oversight over private credit assets

On 22 September 2026, ASIC published a speech from Commissioner Simone Constant discussing the role that private credit plays in Australia’s economy, and the regulator’s expectations for financial institutions that are involved with private credit.

For superannuation trustees, the key points in the Commissioner’s speech were:

• private credit should not be viewed as ‘an easy, high-yielding substitute for traditional fixed-income investments while accepting manager marks at face value’;
• trustees should conduct genuine, look-through due diligence in accordance with their statutory obligations to act in members’ best financial interests;
• trustees must ‘examine the underlying collateral, verify the bad-debt provisioning, and independently test those manager assumptions before committing member capital’; and
• trustees should ask ‘if not, why not?’ of their external fund managers, particularly when they are accountable to their members for their fund manager’s success or failure.

Click here for details.

AFCA – Preparations underway for 2027 independent review

On 22 September 2026, AFCA published a media release signalling that it is beginning preparations for its impending 2027 independent review. The review is required under AFCA’s enabling legislation and will include an assessment of AFCA’s performance and operations.

‘Since the last independent review, AFCA’s jurisdiction, membership and Rules have changed to meet the evolving expectations of stakeholders in a rapidly changing financial services environment. The review will have regard to these changing expectations and consider how AFCA can further enhance its operations and service delivery.’

Click here for details.

Treasury – Consultation on Compensation Scheme of Last Resort’s 2026-27 special levy

On 21 September 2026, Treasury published a consultation paper, Compensation Scheme of Last Resort (CSLR): application of the waterfall framework for the 2026–27 special levy seeking feedback on the proposed method for allocating the 2026–27 CSLR special levy.

‘The CSLR operator published a revised estimate for the 2026–27 levy period. The estimate for the personal financial advice sub-sector is higher than the $20 million levy cap. This leads to a projected shortfall of $170.3 million.’

Specifically, Treasury is seeking feedback on:

• the special levy waterfall framework; and
• the methodology for assessing the connection to underlying losses and the viability implications of proposed levy allocations.

The consultation closes on 5 October 2026.

Click here for details.

ASIC – Report detailing sustainability report observations published

On 21 September 2026, ASIC published Report 839 ASIC’s review of sustainability reports lodged for 31 December 2025, which follows a review of 40 sustainability reports lodged by the first group of reporting entities with financial years ending 31 December 2025. The report ‘identified marked progress in disclosure reporting compared to disclosures previously made voluntarily’.

According to ASIC, the introduction of the statutory reporting regime ‘not only resulted in heightened transparency, but also more meaningful engagement by entities with climate-related risks and opportunities’.

ASIC’s key action items for future reports include:

• reporting entities should explain how information in the sustainability report connects with relevant disclosures in the financial report;
• reporting entities should consider whether they are also able to disclose quantitative information, rather than only qualitative information and, if not, ensure that users can understand the reasons why qualitative information was provided; and
• reporting entities should ensure they provide ‘clear, effective and proximate disclosure of relevant judgements, assumptions and areas of measurement uncertainty’.

Superannuation trustees who meet the relevant assets under management threshold are required to prepare sustainability reports for financial years commencing on or after 1 July 2026.

Click here and here for details.

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