Treasury has issued a discussion paper putting a “last resort” compensation scheme back on the agenda.

It has amended the terms of reference of the review by Professor Ian Ramsey into external dispute resolution schemes.

The review will now look at the “establishment, merits and potential design of a compensation scheme of last resort”.

Treasury also wants the review to look at the “merits and issues involved in providing access to redress for past disputes”.

The discussion paper says more than 80,000 people have suffered financial loss in recent years as a result of not been able to receive compensation or even have their case heard. The cost is estimated at more than $5 billion.

“This undermines trust and confidence in the financial system,” the paper says.

The review panel has made a number of recommendations to improve the dispute system and the Federal Government has accepted these.

The panel will now report on the expanded terms of reference during the second half of this year. Submissions on the discussion paper close on June 28.