The Australian Financial Complaints Authority (AFCA) Hits Record High Complaints in 2025
In 2025, the Australian Financial Complaints Authority (AFCA) witnessed a staggering 14 per cent rise in received complaints, reaching a record high of 111,373 complaints. This increase was spread across all financial products, including insurance, banking and finance, investments and advice, and superannuation.
Compensation and Refunds Skyrocket
Alongside the spike in complaints, consumers and small business owners saw a whopping 120 per cent increase in compensation and refunds obtained through AFCA, totalling $643 million. This figure also set a new record and marked a significant rise from the previous year.
Personal Transaction Accounts and Credit Cards Top Complaints
Personal transaction accounts, credit cards, and consumer credit insurance emerged as the leading subjects of complaints. Over 15,000 complaints were lodged against personal transaction accounts alone, highlighting the severity of issues faced by consumers in this area.
Major Increase in Investment and Advice Complaints
The financial advice sector’s large scale collapses resulted in a 58 per cent increase in investment and advice complaints. Of these, a significant 59 per cent increase was recorded in complaints from self-managed superannuation funds, including 2162 complaints related to the collapse of Shield and First Guardian Master Funds.
AFCA’s Chief Ombudsman and CEO, David Locke, stated that they had issued 44 decisions and had 500 simultaneous investigations on the Shield and First Guardian complaints. He assured that these matters were a key focus for AFCA and would be dealt with as quickly as possible.
AFCA’s Focus: Dixon Advisory Complaints
Recently, AFCA reached a significant milestone by issuing its 1000th Dixon determination. Dixon Advisory complaints form the largest single batch of complaints AFCA has ever managed, with approximately 900 matters currently under investigation. AFCA’s commitment to addressing these complaints promptly and carefully is part of their ongoing efforts to mitigate the substantial impact of financial firm collapses on consumers and their families.
Rise in Superannuation Complaints
In 2025, complaints about superannuation saw a 29 per cent rise, with a total of 7,687 complaints. The main issues were delays in handling claims and disputes over claim decisions. Although complaints regarding death benefits remained steady, the primary pressure points were timeliness and transparency in the claims process.
AFCA’s Role Since Formation
Since its establishment in late 2018, AFCA has received over 634,000 complaints, securing $2.1 billion in compensation for consumers. These numbers underscore the crucial role of AFCA in addressing financial complaints and their commitment to helping consumers.
The Road Ahead
David Locke highlights the sustained demand for AFCA’s services and the need for the financial services sector to improve standards and deliver more customer-focused outcomes. With a new Banking Code now in force and major reforms underway in general and life insurance, this is a pivotal moment for the sector to ensure better, more transparent, and accessible services for their customers.
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