At a time when the Australian government claims it is trying to make professional financial advice more affordable and accessible, its recent actions and proposed legislation contradict these objectives.

The costs of the Compensation Scheme of Last Resort (CSLR) are spiraling out of control. The Financial Advice Association of Australia (FAAA) estimates another $4,165 will be added to every adviser's CSLR bill, bringing the estimated total to $5,709 per adviser. Existing and future professional financial advisers, the majority of whom are SMEs, are being forced to unfairly foot the bill for corporate failures such as Dixon Advisory via the CSLR and these costs will need to be passed onto their clients.

This action by the government is counterintuitive to its own stated objectives and detrimental not just to financial advisers but to the retirement savings of all Australians.