The Australian Financial Complaints Authority (AFCA) has adjusted its monetary limits and compensation caps for complaints.

The new limits cover:

• the maximum value of a claim for compensation AFCA can consider
• 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, as these limits do not apply in the superannuation jurisdiction.)    

Under the new limits, AFCA can consider disputes where the amount being claimed by a consumer does not exceed $1,263,000 or where the credit facility does not exceed $6,317,000 for small businesses and primary producers. This is known as the monetary restriction on AFCA’s jurisdiction.

There is also a limit on the amount of compensation AFCA can order, per claim. The limits differ depending on the type of claim. For more detail you can see the new limits here.

These changes came into effect on 1 January 2024 and apply to all complaints received by AFCA from that date.

The AFCA Rules require AFCA to adjust its monetary limits every three years, in line with the higher of the percentage increase in the Consumer Price Index and the Male Total Average Weekly Earnings.