Document ID: chunk:federal_register_of_legislation:C2025C00112:section:9:p1
Version: federal_register_of_legislation:C2025C00112
Segment Type: section
Provision Reference: s 9 (pt 1/3)
Character Range: 10719–13560

9  Initial estimate of claims, fees and costs for a levy period
 (1) The CSLR operator may, by legislative instrument made within 12 months before the start of the second levy period or a later levy period, determine for the levy period and a sub‑sector an estimate that is the sum of:
 (a) the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the total amount of compensation payable under section 1063 of the Corporations Act 2001:
 (i) during the levy period; and
 (ii) for the sub‑sector;
  other than any such compensation relating to pre‑CSLR complaints; and
 (b) the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the portion of the sum of the following that is attributable to the sub‑sector:
 (i) the sum of AFCA's unpaid fees expected for each of the months in the levy period, other than any such fees relating to pre‑CSLR complaints;
 (ii) the CSLR operator's expected administrative costs for the levy period;
 (iii) ASIC's expected administrative costs notified under subsection (4) for the levy period;
 (iv) for each of the second and third levy periods—the capital reserve establishment contribution reduced (but not below zero) by half of any specified excess worked out under subsection (6) before the start of that levy period;
 (v) for the fourth and each later levy period—the amount (if any) equal to that necessary to restore the capital reserve; and
 (c) any specified shortfall worked out under subsection (5) for an earlier levy period and the sub‑sector; and
 (d) for the next levy period that starts after any specified shortfall is worked out under subsection (6)—the portion of that shortfall that the CSLR operator reasonably believes (having regard to actuarial principles) is the portion attributable to the sub‑sector; and
 (e) for the third levy period—any specified shortfall worked out under subsection (7) for the first levy period and the sub‑sector;
less any excess amounts referred to in subsection (2).
 (2) The excess amounts are as follows:
 (a) any specified excess worked out under subsection (5) for an earlier levy period and the sub‑sector;
 (b) for the third levy period—any specified excess worked out under subsection (7) for the first levy period and the sub‑sector;
 (c) for the fourth levy period—the portion of any specified excess:
 (i) worked out under subsection (6); and
 (ii) that remains after the application of subparagraph (1)(b)(iv) for earlier levy periods;
  that the CSLR operator reasonably believes (having regard to actuarial principles) is the portion attributable to the sub‑sector.
Note: A single instrument under subsection (1) may determine estimates for several sub‑sectors.
 (3) The legislative instrument must include each