The Australian Financial Complaints Authority (AFCA) received a record 119,949 complaints in the 2026 income year, representing an increase of over 19 per cent on the previous 12 months and the third year in a row they have exceeded 100,000.
“These numbers highlight the impact that ongoing cost-of-living challenges and economic uncertainty are having on consumers and the flow-on effects these conditions can have across the financial system,” AFCA chief customer officer Deborah Jenkins said.
AFCA called on firms to work with it and act on the insights the data provided to help prevent recurring issues that lead to complaints with the authority.
While banking and finance remained the largest complaint areas accounting for 66,971 actions, representing an increase of 23 per cent, those involving investments and advice rose by the largest percentage of 56 and totalled 6542.
Jenkins indicated an increase in financial difficulty complaints of 17 per cent and credit reporting complaints of 22 per cent pointed to opportunities for firms to strengthen hardship support, improve communication with clients and ensure accurate credit reporting.
Most of the investment and advice complaints were driven by the Shield Master Fund and First Guardian collapses. Further, within this category complaints alleging failure to act in the client’s best interest jumped by 65 per cent on the previous year to a total of 2083.
“While most financial advice firms do the right thing, we are seeing a significant number of complaints stem from major financial collapses that have affected thousands of consumers. These matters are complex and can be incredibly stressful for individuals and their families,” Jenkins noted.
Superannuation-related complaints also increased over the year, rising by 42 per cent and numbered 8755. Delays in claim handling, service issues and rejection of superannuation insurance claims were the most common issues here. Rejection of claim complaints jumped by 82 per cent over the year.
