The Australian Financial Complaints Authority (AFCA) has adjusted its monetary limits for complaints.
The new monetary limits include
- the maximum value of a claim for compensation AFCA can consider
- the maximum size of a credit facility AFCA can consider a complaint about
- the maximum amount AFCA can award a consumer or small business for complaints about banking and finance, general insurance, life insurance and investments and advice.
Superannuation complaints are not affected.
The changes came into effect on 1 January 2021 and apply to all complaints received from that date.
The changes are set out in the AFCA rules, which require AFCA to adjust its monetary limits on 1 January 2021, and then every three years thereafter.
In accordance with the AFCA Rules, the previous monetary limits have been adjusted based on the Male Total Average Weekly Earnings for the 3-year period up to 30 September 2020 as reported in the most recent Australian Bureau of Statistics report.
A comparison of the monetary limits that apply for complaints received up to 31 December 2020 and the new monetary limits that apply to complaints received from 1 January 2021 can be found here.