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CSLR – Compensation Scheme of Last Resort
Step-by-step: What to do after you receive a determination in your favour from AFCA, and want to lodge a claim with the CSLR.
Step 1. Collect your AFCA documents (don’t skip this)
Create a folder and save:
AFCA Determination (the final decision document).
AFCA will issue you with an ‘appropriate steps’ notice. This signals that, despite AFCA taking all reasonable steps to have the determination amount paid, it remains unpaid. Save everything as a PDF. Name files clearly (e.g., “AFCA Determination, Your Name – Date.pdf”). This will make for easy uploading.
Step 2. Lodge your CSLR claim
CSLR claims are lodged online. Their Claims Team will be in touch to assist you through the process. They will aim to process your claim within 60-90 days. The time taken will be linked to:
The complexity of your claim
Your responsiveness to our information requests and/or other third parties involved in the claim
The volume of claims the CSLR team are working on
The CSLR’s access to levy funds required to pay compensation.
To lodge your claim, visit: https://cslr.org.au/ and click the ‘make a claim’ button. The CSLR Claims Portal will open. You will then be guided through the following steps:
Basic setup of a CSLR claim account. Ensure you use the same name details as what appears in your AFCA determination.
Identity verification via the ID Verse system. You will need your driver’s license, Passport, Medicare card etc.
Entering all relevant fields relating to your claim, alongside uploading your AFCA determination and appropriate steps notice. NOTE: if you are claiming on behalf of an SMSF or company, you will need to upload your authority to act documentation (such as a trust deed).
Step 3. CSLR verification (what they do behind the scenes)
After you submit your claim, the CSLR will:
Confirm the determination and the appropriate steps information with AFCA
Contact the firm (or liquidator) to confirm:
You were a client / covered person under the determination
The determination is unpaid
Confirm the amount and who is legally entitled to receive it
This verification stage is normal and not about giving the firm a second chance to re-argue the case.
Step 4. Receive an offer and accept it
Once your claim is confirmed as eligible, CSLR will issue you an offer.
You have 90 days to accept this offer as per the legislation.
The CSLR may request extra info if there are super/SMSF complexities.
Step 5. Get your payment destination ready (super or bank)
The CSLR will need the account details where compensation will be paid, and it must match the eligible recipient from the AFCA determination.
Prepare:
If the payment is going to a superannuation account, the fund name, member number, and any payment/rollover instructions the fund requires
If the payment is going to an SMSF, the SMSF bank account details and evidence that it is the correct account for the fund
If the payment is going to a bank account: BSB/account number + account name matching the claimant (this will be unlikely in the case of First Guardian & Shield Master Fund compensation claims)
If you’re unsure whether compensation should be treated as income/capital/recovery inside your super, you can find more information at the ATO website or get advice from your accountant/super fund. This can avoid delays later.
Step 6. Payment timing (what to expect)
Once you have accepted your offer and your payment details have been verified, the CSLR team will aim to make the payment within 14 days. This may depend on the availability of levy funds. Your Claims Officer will be able to give you a more specific timeframe for when you can expect payment.
Important rules to understand (so you’re not surprised)
1) The CSLR cap
- The CSLR can pay up to $150,000 as outlined in the legislation (based on how the determination is framed).
- The CSLR does not have discretion to exceed the cap, even in hardship.
2) If your loss is greater than $150,000
- You can still claim with the CSLR and if eligible, they can pay up to the cap of $150,000.
3) Multiple people/trustee structures
- If your AFCA outcome involves a trustee and individuals (e.g., trustee + husband + wife), what CSLR can pay may depend on how AFCA words the determination (separate amounts vs one combined amount).
- If you’re in this situation, read the determination carefully and get help understanding how it’s structured before lodging. The CSLR website also has a variety of claim scenarios that may be helpful.
4) Reasons why a claim may be declined
- The amount was already paid (or partially paid), and the outstanding balance differs.
- The claim doesn’t fall within CSLR jurisdiction due to how the complaint/loss is legally characterised (This is uncommon when AFCA has clearly determined advice misconduct and the firm hasn’t paid).
5) If you have received (or expect to receive) money from another organisation, such as Macquarie or Netwealth, in relation to your claim, can you still receive compensation from the CSLR?
If you have received, or expect to receive, an amount from another financial firm, fund, responsible entity, investment platform, external administrator or any other party related to your AFCA complaint, you may still be eligible for compensation from the CSLR. You can review the CSLR’s eligibility criteria here.
If you are eligible, and subject to the terms of the relevant AFCA determination, any amount you have already received from another party may be taken into account when the CSLR calculates your compensation payment.
Example #1
If AFCA has determined you are owed $150,000 and you have already received $50,000 from another source, the CSLR may assess compensation based on the remaining $100,000.
Example #2
If AFCA has determined you are owed $300,000 and you have already received $50,000 from another source, the CSLR may assess compensation on the remaining $250,000, noting that the CSLR has a compensation cap of $150,000.
If an amount has not yet been received from another party but is expected to be paid in the future, consideration will need to be given by the CSLR as to how this may affect both the timing and calculation of any compensation payment.
In some circumstances, a compensation payment may still be made by the CSLR while taking into account funds that are to be paid to the claimant in the future. In such cases, the anticipated amount would be offset against the total AFCA determination.
This offset approach ensures that the claimant ultimately receives the correct amount to which they are entitled under the AFCA determination, while any funds exceeding the AFCA-determined entitlement remain with the CSLR.
Your ‘ready to lodge’ CHECK LIST
☐ AFCA Determination saved as PDF
☐ AFCA appropriate steps notice
☐ Identity documents ready
☐ You are available to respond promptly to CSLR follow-up questions
Please also familiarise yourself with how CSLR calculate the amount of a compensation claim under various scenarios https://cslr.org.au/claim-compensation-scenarios/
