The Australian Financial Complaints Authority (AFCA) has reported a record surge in consumer and small business complaints in 2025, with 111,373 cases lodged — a 14 per cent increase on the previous year.
The independent dispute resolution body also helped secure $643 million in compensation and refunds, marking a 120 per cent rise from 2024 and the highest amount in its history.
AFCA Chief Ombudsman and Chief Executive Officer David Locke said the increase in complaints was spread across all financial product areas, including banking and finance, insurance, investments and advice, and superannuation.
“Shield and First Guardian complaints will continue to be a key focus for AFCA throughout 2026. We have now issued 44 decisions, including five lead decisions, and have 500 simultaneous investigations underway, and we remain firmly committed to progressing these matters as quickly as we can,” Mr Locke said.
Large-scale collapses in the financial advice sector were a major driver of the increase, with investment and advice complaints up 58 per cent and complaints from self-managed superannuation funds rising 59 per cent. This included 2,162 complaints linked to the collapse of the Shield and First Guardian Master Funds.
AFCA also reached a significant milestone last week, issuing its 1,000th determination in relation to Dixon Advisory — the largest single batch of complaints the authority has ever managed. Around 900 Dixon-related matters remain under investigation.
“We know that large-scale financial firm collapses can have a profound impact on people and their families. We’re working through these matters as quickly and carefully as we can, and we’re making steady progress,” Mr Locke said.
Superannuation complaints rose 29 per cent to 7,687 in 2025, largely due to delays in handling claims and disputes over claim decisions. While death benefit complaints remained steady, timeliness and transparency in the claims process were key pressure points.
Since its inception, AFCA has received more than 634,000 complaints and helped secure $2.1 billion in compensation for consumers.
“This data highlights the sustained demand for our service, and with a new Banking Code now in force, andmajor reforms underway across general and life insurance, this is a pivotal moment for the financial services sector to lift standards and deliver more consistent, accessible and customer-focused outcomes for their customers,” Mr Locke said.
