Figures checked 1 October 2026.
The Australian Financial Complaints Authority (AFCA) generally treats an organisation with fewer than 100 employees as a small business, but it cannot consider a complaint if the relevant group of related companies has 100 employees or more (AFCA, Small Businesses with a financial complaint). For complaints AFCA received from 1 January 2024, AFCA’s compensation-caps and monetary-limits notice sets monetary restrictions on jurisdiction at no more than $1,263,000 for a consumer claim or a $6,317,000 credit facility for a small business or primary producer; these are not the separate compensation caps for each claim type.
How does AFCA count employees in a related-company group?
AFCA’s stated test focuses on the relevant group of related companies, not simply the workforce of the entity lodging the complaint. Its rule is:
| Business situation | AFCA’s position |
|---|---|
| Organisation with fewer than 100 employees | Generally treated as a small business |
| Relevant group of related companies has 100 employees or more | AFCA cannot consider the complaint |
| Employee numbers fluctuate around the threshold | AFCA requires substantiation, such as wage records, covering the time of the events that gave rise to the claim |
| Not-for-profit organisation or club that is not a registered charity | May be considered if it carries on a business and has fewer than 100 employees |
| Registered charity | AFCA can consider its complaint regardless of employee numbers or whether it carries on a business |
The organisation can be a partnership, incorporated trustee or company, including a primary production business.
If a business is under external administration, or an individual is bankrupt, AFCA generally considers a complaint only with the consent of the insolvency practitioner, such as a liquidator or trustee in bankruptcy. A superannuation complaint involving a bankrupt fund member’s benefit that has not vested in the member’s trustee in bankruptcy is an exception. Only individuals can make superannuation complaints.
Which small-business insurance complaints can AFCA consider?
Meeting the employee threshold does not make every insurance complaint eligible. AFCA says its jurisdiction over general insurance is limited by the product type and the cover involved.
| Insurance matter | AFCA’s position |
|---|---|
| Broker conduct | AFCA can consider complaints about a broker following instructions or arranging a policy |
| Insurer conduct | AFCA can consider complaints about an insurer’s decision or conduct concerning a small-business insurance product |
| Eligible cover listed below | AFCA may consider complaints about these cover types |
| Excluded cover | AFCA cannot consider a complaint about the cover identified in the exclusions below |
| Industrial Special Risks | AFCA cannot consider a complaint about Industrial Special Risks cover, but may consider certain cover within an Industrial Special Risks policy |
The cover types AFCA says it may consider complaints about include:
| Cover type | Description stated by AFCA |
|---|---|
| Computer and electronic breakdown | Breakdown of computers and other electronic equipment |
| Fire or accidental damage | Loss or damage caused by fire or an accident |
| Glass | Glass breakage, including shop fronts |
| General property | Damage to business property or work tools |
| Loss of profits or business interruption | Cover designed for a business that an event makes unable to operate |
| Medical indemnity | Protection for a medical business and its employees when sued for an act, error or omission connected with professional services |
AFCA cannot consider complaints about cover for Contractors All Risks, Fidelity Guarantee, Legal Liability—including Public Liability and Products Liability—Professional Indemnity or Industrial Special Risks under a Small Business Insurance Product.
That does not mean AFCA has no jurisdiction over every policy of an excluded type. The precise cover, the conduct complained about and the wording of the policy all matter, so check the policy’s Product Disclosure Statement before lodging a complaint.
How can I make a free complaint to AFCA?
AFCA’s service is free to access. A small business can complain about a financial firm online, by telephone, by email or by post.
| Channel | AFCA’s stated option |
|---|---|
| Online | Use AFCA’s online complaint form or complaints portal |
| Account | An account allows the complainant to manage the complaint throughout the AFCA process |
| Live Chat | Ask questions or get help completing the complaint form |
| PDF form | Download, print and complete the PDF complaint form |
| Email the complaint form or enquiries to info@afca.org.au | |
| Telephone | Call 1800 931 678 free of charge |
| Post | Submit by post using AFCA’s current postal instructions |
AFCA launched its online complaints portal on Monday 17 June 2024. Its stated telephone and Live Chat availability is Monday to Friday, 8am–6pm AEDT/AEST. People who need additional support can also speak with third-party agencies.
Licensed financial services providers in Australia must be AFCA members and participate in its process. AFCA provides an online search tool for checking whether a financial firm is a member.
What happens after AFCA receives a complaint?
AFCA refers the lodged complaint to the financial firm. The firm must review it and attempt direct resolution within a set timeframe.
If the complaint remains unresolved:
- AFCA progresses it for further consideration.
- AFCA works with the parties to seek a settlement through methods such as negotiation and conciliation.
- If those efforts do not work, AFCA may provide the complainant and financial firm with a preliminary assessment of the complaint’s merits.
- If the complainant rejects that assessment, AFCA makes a decision called a determination.
An AFCA determination is binding on the financial firm. Depending on the claim, an outcome may include compensation for direct financial loss, indirect financial loss and non-financial loss. Monetary caps apply to non-superannuation complaint outcomes.
Are the AFCA figures compensation caps?
No. The monetary limits that decide whether AFCA can consider a dispute are different from the caps limiting the compensation it can order for each claim type.
| Figure or rule | What it controls |
|---|---|
| $1,263,000 | The maximum amount claimed by a consumer that AFCA can consider |
| $6,317,000 | The maximum credit facility for a small business or primary producer that AFCA can consider |
| Separate claim-type compensation caps | The maximum compensation AFCA can order per claim; the limits differ according to the type of claim |
The changes took effect on 1 January 2024 and apply to complaints AFCA received from that date. For complaints lodged before that date, the relevant version of AFCA’s Rules should be checked.
The $6,317,000 figure concerns a small-business credit facility. It is not a general limit on the value of an insurance claim and does not automatically represent the maximum compensation AFCA can award.
A credit facility may include a loan, lease, line of credit, guarantee, other debt instrument, or a combination approved under the same credit contract or at the same time. The exclusion for a facility exceeding the jurisdictional limit applies whether the complainant is the borrower or a guarantor.
Superannuation complaints are unaffected by these limits because they do not apply in AFCA’s superannuation jurisdiction. The AFCA Rules also require monetary limits to be adjusted every three years using the higher percentage increase in the Consumer Price Index and Male Total Average Weekly Earnings.
What should I check before relying on these figures?
Check the AFCA regulator page for the current jurisdictional limits, compensation caps and Rules, and check your policy’s PDS for the specific product and cover involved. AFCA’s employee-count test determines whether it can consider a small-business complaint; it does not determine whether the complaint succeeds or guarantee a particular outcome.
This is general information, not financial or legal advice.
Sources
- Small Businesses with a financial complaint | AFCA
- AFCA’s compensation caps and monetary limits adjusted | Australian Financial Complaints Authority
FAQ
Does an organisation with exactly 100 employees qualify?
No. AFCA defines a small business as an organisation with fewer than 100 employees. It also cannot consider a complaint where the relevant group of related companies has 100 employees or more.
How do related companies affect the employee count?
The relevant group is considered as a group. If the related-company group has 100 employees or more, AFCA cannot consider the complaint through its small-business route. When employee numbers fluctuate around the threshold, AFCA may require evidence such as wage records from the time of the events giving rise to the claim.
Is AFCA’s service free, and is its determination binding?
AFCA’s service is free to access. If AFCA makes a determination, it is binding on the financial firm.
Does $1,263,000 mean AFCA can award that amount?
No. $1,263,000 is the monetary restriction on the consumer claims AFCA can consider. The compensation AFCA may order is subject to a separate cap based on the type of claim.
Can AFCA consider every small-business insurance policy?
No. AFCA’s general insurance jurisdiction depends on the product type and cover. Some cover types are excluded, while complaints about eligible cover or certain broker or insurer conduct may be considered. Check the policy’s PDS and AFCA’s current eligibility information before applying.
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