June Smith

Complaints to the Australian Financial Complaints Authority (AFCA) continue to highlight the barriers Aboriginal and Torres Strait Islander peoples face in accessing financial services and products, particularly in regional and remote communities. The ombudsman has called on the industry to make 2026 count and take actionable change to improve service quality and the cultural competence of their organisations.

AFCA received 2,461 complaints from Aboriginal and Torres Strait Islander peoples in the 2024–25 financial year. Through complaints handling and community engagement, the most common issues raised include unauthorised transactions, inadequate or delayed responses to requests for financial difficulty assistance, lengthy delays in firm responses to claims and complaints, and mis‑selling of funeral and other insurance products.

AFCA also hears concerns relating to digital exclusion, which can limit people’s ability to engage with firms via technology. This is compounded by a lack of cultural understanding within firms and higher costs for First Nations people seeking to access basic banking, superannuation and insurance services, particularly in regional and remote areas.

“First Nations people continue to face disproportionate challenges and barriers when interacting with financial services and our data likely reflects only a fraction of the problem. Year after year the same patterns persist, and many people never reach external dispute resolution because of the frustration they experience dealing with firms. First Nations people deserve to be able to access every day financial services other Australians take for granted,” said AFCA Deputy Chief Ombudsman Dr June Smith.

“In 2026, we encourage the sector to come together and take advantage of the many opportunities for change, such as the independent reviews of codes of practice which could make a real difference to how First Nations people can engage and access financial services. Our goal should be economic and financial empowerment for First Nations people.”

Many regional and remote communities face limited internet access, unreliable mobile coverage, and more recently, bank branch closures. These barriers often make it harder for First Nations people to access services online and engage with representatives about the challenges and difficulties they’re having with products.

Automated services provided by financial firms, including during internal dispute resolution, can overlook signs of digital exclusion, language and cultural barriers, vulnerability, hardship or financial abuse. Firms have an obligation to make sure there are human-led checks, culturally competent staff when engaging with First Nations people and balances in place to support their customers.

“Not having digital access can have many impacts – from making insurance claims, accessing and engaging with superannuation accounts and receiving timely updates from financial firms. A priority for AFCA is equity of access for everyone, and I encourage all financial firms to think about the equity of access they offer to their own customers.”

The current independent reviews of industry codes of practices across the sector are a terrific opportunity to set consistent standards for First Nations engagement and access to services, customer service and support for vulnerable, regional and remote customers. It is also timely for industry to review the additional barriers to full financial services engagement by First Nations people.

“Now is the time for industry to clearly define its commitment to improving engagement with First Nations peoples. The new Codes should strengthen self‑identification processes, incorporate cultural practice and norms into account and personal identification requirement, require meaningful cultural awareness training, and ensure genuine service support for First Nations people in regional and remote areas,” said Dr Smith.

“We need stronger codes of practice to improve how financial services engage with First people to ensure they can access their services and have a clear path to culturally appropriate dispute resolution when things go wrong.”

As part of its commitment to reconciliation and financial inclusion, AFCA has also changed the way it manages complaints from First Nations peoples, making its process culturally informed, respectful and accessible.

“Through our Equity of Access program and Reconciliation Plans, AFCA is embarking on further improvements to how we work, to ensure every First Nations person has the same opportunity for a fair process and a fair outcome. We recognise that people come to us with different needs and experiences, and for some the process can feel daunting,” Dr Smith said.

“This program marks the beginning of a major shift in how we deliver our service, so people feel seen, heard, supported and able to participate fully in their complaint.”

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Peter Burgess

It’s critically important not to draw the wrong conclusion from the recent Australian Financial Complaints Authority (AFCA) statistics relating to SMSFs, says Peter Burgess, CEO of the SMSF Association.

Addressing the Association’s Technical Summit in Sydney today, he said conflicted advice models and inappropriate advice were the “root cause” for the 95 per cent increase in SMSF complaints to AFCA in 2024-25 – not the SMSF structure itself.

“While it may be very tempting for some to jump to the conclusion that SMSFs are the problem, that’s simply not the case.

“These statistics, as well as the ballooning cost of Compensation Scheme of Last Resort (CSLR) levies, again highlight the importance of having a well-resourced regulator who can detect and act quickly on any signs of advice failure.”

On the topic of CSLR levies, Burgess said he welcomed Assistant Treasurer Daniel Mulino’s recent decision to consult with industry on potential options for implementing a special levy.

“The Association acknowledges the importance of such a scheme, but to reduce the burden on any one individual sector, we encourage Treasury and the Minister to explore ways of spreading the costs as widely as possible,” he said.

Burgess said the Association endorsed the statement by ACFA Deputy Chief Ombudsman, June Smith, who was recently quoted saying “we are well beyond black swan events and bad apples and we need to look at these systemic issues across the industry and prevent them from happening in the first place – it’s not enough to have a CLSR at the end when the harm has occurred”.

Burgess seized the opportunity in his Legislative Update: What You Need To Know address to delegates to reiterate the importance of a pragmatic ATO compliance approach following recent changes to the ATO’s pension ruling, requiring pensions failing the minimum standards to be commuted before a new pension can begin.

“This is particularly important for historical cases involving pensions that may have failed the minimum pension standards in a previous financial year and, in accordance with the original ATO view and prevailing industry practice, were not commuted before the pension was subsequently restarted the following financial year,” he said.

With the long awaited release of the updated Law Companion Ruling on the tax treatment of SMSF non-arm’s length expenses (NALE) now delayed till October 2025, Burgess urged the ATO to elaborate on the tax treatment of compliance-related expenses.

“The previous ruling implies that such expenses do not give rise to non-arm’s length income (NALI) even if incurred at non-arm’s length rates.

“Examples in the previous ruling, supported by recently issued private binding rulings, emphasise the importance of the capacity under which a service is provided. However, capacity appears irrelevant if it’s a compliance-related expense.

“Clarification is required on this important issue for the sector as many may be under the mistaken belief that any type of accounting fee incurred by the SMSF on non-arm’s length terms gives rise to non-arm’s length income,” he said.

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June Smith

The Australian Financial Complaints Authority is opening public consultation on proposed changes to the rules that govern its work, with a key focus on expanding its jurisdiction to include the conduct of receiving banks in scam complaints.

The consultation, running from 19 May to 13 June, follows a recent change to AFCA’s authorisation conditions by the Federal Government. The amendments seek to improve the effectiveness and efficiency of complaint handling, improve transparency and lift industry standards, particularly in relation to scams.

A central feature of the proposed changes is the inclusion of receiving banks in AFCA’s jurisdiction when assessing complaints involving scam transactions. This change enables AFCA to investigate the actions of financial institutions that receive funds from scam victims, including the use of mule accounts.

“This amendment is a significant step forward in ensuring that all parties involved in the movement of scam funds are subject to appropriate scrutiny,” said Deputy Chief Ombudsman Dr June Smith. “It promotes fairness, transparency, and accountability of all banking participants in the transaction chain.”

AFCA engaged an external consultant to draft the proposed changes, so they are clear and easy to understand. The proposed Rules changes also include introducing the ability of AFCA to name financial firms who do not comply with its determinations, use of AFCA’s processes by paid representatives and removal of AFCA’s legacy Rules section.

The Consultation Paper is available on the Consultation page of the AFCA website and there is an edited draft of AFCA’s Rules that reflects the proposed changes available here.

“AFCA conducts an annual review of its Rules to ensure they remain accurate and up to date. This process is essential for providing clear guidance regarding our jurisdiction and procedures,” added Dr Smith.

“Engaging with stakeholders through the consultation is vital for refining our processes and ensuring we meet the evolving needs of consumers, small business and financial firms. We look forward to receiving valuable feedback that will help us enhance the AFCA scheme.”

Summary of proposed changes

AFCA proposes changes to its Rules in the following areas:

• Consideration of a receiving bank in a scam transaction. This change will allow AFCA to meet its new authorisation condition that was issued by the Minister for Financial Services. That condition enables AFCA to investigate and consider scams involving mule accounts and the actions of receiving banks in scam complaints. This change provides greater fairness, transparency and accountability in dealing with scam complaints.
• Introducing the ability for AFCA to name financial firms who do not comply with Determinations. Publishing this information increases transparency and assists in ensuring financial firms meet their obligations to comply with a determination, after it’s been accepted by a consumer.
• Requiring the use of appropriate communication channels by paid representatives. This change will ensure paid representatives use the communication channel required by AFCA, including our consumer portal, when submitting complaints and communicating with us about complaints. Handling these complaints through the most appropriate channel will provide for much more efficient and effective complaint handling.
• Dealing with paid representatives who are not AFCA members. This proposed change would extend an existing Rule, giving AFCA a further discretion to cease dealing with a complaint where a paid representative is required to be an AFCA member but is not. This will provide important protection for complainants who have engaged a paid representative but are unhappy with the service they provided and wish to make a complaint.
• Removal of AFCA’s legacy Rules section. AFCA’s legacy jurisdiction has already closed at the end of June 2020, so we propose to remove this section from our Rules. Any open legacy complaints will not be impacted.

AFCA’s Rules are approved by the Australian Securities and Investments Commission (ASIC) and explained in more detail in the Operational Guidelines (see the Rules and Guidelines web page). AFCA resolves complaints in accordance with those rules and guidelines.

The Consultation page on the AFCA website provides more information on how to submit a response.

About AFCA – The Australian Financial Complaints Authority (AFCA) is a non-government ombudsman service providing free, fair and independent help with financial disputes. AFCA is a one-stop-shop for consumers and small businesses who have a dispute with their financial firm, over things such as banking, credit, insurance, advice, investments or superannuation. Where an agreement cannot be reached between parties, AFCA can issue decisions that are binding on financial firms.

Media contacts:

media@afca.org.au

Attachments:

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June Smith

The number of complaints lodged by Aboriginal and Torres Strait Islander (ATSI) peoples to Australia’s financial dispute resolution scheme surged by 25 per cent over the past financial year, signalling increased engagement with financial products but also highlighting urgent issues that require attention.

The Australian Financial Complaints Authority (AFCA) received 3,161 complaints from Aboriginal and Torres Strait Islander peoples in the 2023-24 financial year. Key issues included unauthorised transactions and delays in insurance claims, with complaints about financial difficulty continuing to be disproportionately high.

“More First Nations people are engaging with AFCA’s free and fair service for resolving financial complaints. Our data shows however a growing need for more effective and culturally appropriate financial services to ensure they can engage in economic and financial activity,” said AFCA Deputy Chief Ombudsman, Dr June Smith.

“As complaints rise, so does the need for firms to better understand and serve the unique challenges faced by some communities in accessing even basic services that other Australians take for granted.”

With a record increase in complaints, financial firms need to enhance their service offerings, particularly by addressing digital exclusion in regional and remote communities. This includes improving accessibility and appropriateness of basic banking, superannuation, insurance and credit services, and adopting culturally appropriate practices in claims handling, hardship applications and complaints handling.

As the financial sector moves increasingly online, branch and ATM closures, heightened security protocols, and complex identification checks are creating unique barriers for many First Nations customers to accessing the services they need to engage in economic and financial activity.

“We encourage all financial institutions to reflect on how they are currently engaging with First Nations customers and to make the necessary changes to ensure they are providing genuine, tailored and culturally appropriate assistance,” Dr Smith said.

The three most complained about products by First Nations peoples were personal transaction accounts, personal loans, and comprehensive motor vehicle insurance. Common issues included unauthorised transactions— often linked to scams — and delays in insurance claim handling.

Of particular concern is the rise in complaints related to financial difficulty, which jumped 17 per cent. One in 10 complaints from First Nations people was related to financial hardship — double the rate of complaints about hardship from the general population. Failure by firms to appropriately respond to hardship requests was one of the top three issues raised by First Nations complainants.

“It’s deeply concerning to see such high rates of complaints about the failure to respond to requests for assistance for First Nations people in financial difficulty. This is an area where firms must meet their legal obligations,” Dr Smith stressed.

In addition, there was a 47 per cent surge in complaints about comprehensive motor vehicle insurance claims, and a 24 per cent rise in complaints about insurance claim delays.

“These figures point to serious challenges faced by First Nations customers in accessing fair and timely insurance services,” Dr Smith said. “This highlights a critical need for the industry to address these concerns and ensure that general insurance is equitable and responsive to the needs of all customers.”

First Nations people are also being excluded from accessing and engaging with their superannuation due to funds not ensuring ID requirements are culturally appropriate and failing to recognise cultural kinship practices or that for many First Nations people, English is a second language. Dr Smith has called on superannuation funds to act on long standing requests to change their processes.

As part of its commitment to reconciliation and financial inclusion, AFCA has tailored the way it manages complaints from First Nations peoples that is culturally informed, respectful and accessible. Guided by its Reflect and Innovate Reconciliation Action Plans, AFCA’s efforts to purposefully enhance its services include ensuring complainants receive tailored assistance, particularly for those who may be experiencing hardship or digital barriers.

“We understand that engaging with the AFCA complaint process can be stressful, especially for those facing financial or personal challenges. That’s why AFCA provides additional support where needed, including offering flexibility in service delivery and timeframes and allowing people to appoint representatives,” Dr Smith said.

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The Australian Financial Complaints Authority (AFCA) received 2,523 complaints from Aboriginal and Torres Strait Islander peoples in the 2022-23 financial year, a rise of 13 per cent on the previous year.

Overall, AFCA received nearly 97,000 complaints in 2022-23, in banking and finance, investments and advice, insurance and superannuation. This was a rise of 34 per cent and a record number of complaints.

About 3 per cent of those complaints were submitted by people who self-identified as Aboriginal or Torres Strait Islander.

The three products most complained about by First Nations people were personal transaction accounts, personal loans and credit cards. The most common issues were unauthorised transactions (including scams), delays in insurance claim handling, and service quality.

More than one in 10 complaints submitted by First Nations peoples were about financial hardship. This compares with one in 20 involving hardship for AFCA complaints overall.

“The fact that there are more than double the proportion of complaints about hardship among First Nations peoples is of great concern to AFCA and we call on financial firms to do more to address this,” AFCA’s Deputy Chief Ombudsman, Dr June Smith, said.

“We encourage firms to be more proactive about identifying First Nations customers in hardship and working with them to alleviate their financial problems.”

Dr Smith added that there was still significant work to do to improve financial inclusion for all First Nations peoples. “First Nations peoples should be served by organisations that are culturally aware and engaged in culturally sensitive practice.”

Dr Smith said AFCA continued to review its own performance against this goal.

With regard to financial hardship, AFCA prioritises vulnerable complainants and provides them with additional assistance to make the complaint process less stressful, she said. “We encourage people to indicate when lodging a complaint that they may need flexibility with the AFCA process – such as longer deadlines – if they are experiencing difficult circumstances.

“People can appoint a representative – whether that’s a friend or family member or a financial counsellor – to walk alongside them during the process,” she said. AFCA could also provide referrals to other free community support services.

AFCA’s dispute resolution service is free for consumers and small businesses. Complaints can be lodged online, by mail or via a free call to 1800 931 678.

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The proposed changes to its official Rules, and associated amendments to its Operational Guidelines, are largely designed to implement recommendations of the Treasury-led Independent Review of AFCA.

Consultation on the proposed changes begins on 27 March and is open until 22 May.

“AFCA has a significant three-year program of work underway to implement the Independent Review recommendations,” Deputy Chief Ombudsman Dr June Smith said. “Our proposed Rules and Operational Guidelines changes are an important component of that program.

“The aim is to ensure AFCA continues to deliver fair, independent, efficient and effective solutions for financial disputes,” Dr Smith said.

The Independent Review found that AFCA was performing well but should continue to develop and improve its procedures as it consolidated its place in the financial system.

AFCA’s Rules^[1] are approved by the Australian Securities and Investments Commission (ASIC) and explained in more detail in the Operational Guidelines^[2]. AFCA resolves complaints in accordance with those rules and guidelines.

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[1] https://www.adviservoice.com.au/wp-content/uploads/2023/03/AFCA-Rules-13-January.pdf
[2] https://www.afca.org.au/about-afca/rules-and-guidelines
[3] https://www.afca.org.au/news/consultation/rulesandOGconsultation

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Mr Price received the 2022 SOCAP Australia Lifetime Achievement Award at the Annual SOCAP Australia International Symposium Gala Dinner & Industry Awards last night. The Lifetime Achievement Award recognises an individual who has significantly contributed through a lifetime of work within the consumer affairs, customer care and complaints management industry.

The award is a fitting acknowledgment of Mr Price’s nearly two decades of service in dispute resolution, and a career spanning nearly 50 years in the legal and financial services sectors.

“John has made an outstanding contribution over his long career and has been instrumental at AFCA and its predecessor schemes in providing independent, fair, efficient and effective dispute resolution,” AFCA’s Chief Ombudsman, David Locke, said. “He has also been a leading voice for many years on broader policy matters affecting insurance influencing improved insurer practices and consumer outcomes.”

Deputy Chief Ombudsman Dr June Smith added: “John has secured many individual outcomes for consumers and insurers in resolving complaints. But his true legacy can be seen in insurers’ improved engagement with their customers.”

Mr Price brought to his work not only a deep and nuanced understanding of insurance law but also an ability to work with both insurers and consumer representatives to achieve better outcomes for all, Dr Smith said.

The foundations of John’s deep industry knowledge were laid when he joined Maurice Blackburn & Co as a solicitor in 1978, becoming a partner in 1984. He led the industrial personal injuries practice there until moving into dispute resolution with the Insurance Ombudsman Service in 2004. In 2008 he became Lead Ombudsman, General Insurance, with the new Financial Ombudsman Service (FOS). When AFCA replaced FOS and two other ombudsman schemes in 2018 Mr Price was appointed Lead Ombudsman for Insurance, a role he held until stepping aside at the end of June last year.

Mr Price is known for his commitment to direct engagement with insurers and consumer groups, and for being a “bridge” between them, as one industry participant put it.

His direct engagement approach was evident early, at the time of the 2009 Black Saturday bushfires and the 2011 Queensland floods, when he made sure FOS was “on the ground” talking to those affected. He brought consumers and industry together to work out the most efficient and effective way forward.

Under his leadership, FOS systematised the management of major disasters like floods, developing approaches that are still used within the industry today. He was among those who pushed for a standard definition of flood cover.

Mr Price also influenced insurers’ approaches to issues such as informed consent, contract readability, and protecting people with mental health issues from unfair, blanket policy exclusions. He has helped ensure policy provisions are applied fairly, for example by ensuring that family violence victims do not have claims unfairly denied because of their partner’s conduct. He championed the need to address customer vulnerability before it became a requirement under codes and regulation.

More recently, Mr Price led AFCA’s insurance team though the peak months of COVID-19, a period when insurance complaints jumped as the industry grappled with travel insurance claims. He was involved in discussions about industry-led test cases over business interruption insurance.

Mr Price has also contributed as a Director of State Trustees Limited and STL Financial Service Limited, and as Chair of the State Trustees Limited Australia Foundation. He was a member of the Accident Compensation Committee for more than 20 years, a member of the Victorian WorkCover Authority Legal Liaison Committee and served on numerous Victorian Government working parties and advisory groups. He was also a Code of Conduct Commissioner for Cricket Australia and Chair of the Pennant Cricket Appeals Board for Cricket Victoria.

“We are fortunate that someone of John’s calibre continues to contribute at AFCA as a part-time decision maker and as a mentor,” Mr Locke said. “We congratulate him on this well-deserved award.”

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The new Senior Ombudsmen will work closely with AFCA’s Lead Ombudsmen in the areas of banking and finance, insurance, investments and advice, and superannuation.

“They’ll bring their specialist technical and professional expertise to bear on projects aimed at efficient and consistent decision making, which we know is important to both complainants and financial firms,” Deputy Chief Ombudsman June Smith said. “The Senior Ombudsman will help ensure we deliver an independent, fair and consistent approach to decision making and complaint resolution.”

Projects include developing new and revised ‘AFCA Approaches’^[1] in consultation with stakeholders. These documents outline how AFCA approaches certain types of financial complaint and draw on the experience of Ombudsmen in resolving complaints.

The Senior Ombudsmen will be part of the leadership team in AFCA’s Decision Makers group, which totals more than 80 ombudsmen and adjudication panel members.

While the vast majority of the 70,000-plus complaints escalated to AFCA annually are resolved by helping complainants and financial firms reach agreement, around 5,000 cases need the more formal input of a decision maker such as an Ombudsman or Adjudicator.

The new appointments, all internal promotions, are:

• Anne Maree Howley, Senior Ombudsman, Superannuation
• Chris Liamos, Senior Ombudsman General Insurance
• Louise McAuliffe, Senior Ombudsman, Credit
• Shail Singh, Senior Ombudsman, Investments and Advice
• Neva Skilton, Senior Ombudsman, Transactions
• Brenda Staggs, Senior Ombudsman, Financial Difficulty
• Andrew Weinmann, Senior Ombudsman, Life Insurance

Biographies

Anne Maree Howley, Senior Ombudsman, Superannuation
Anne Maree has extensive experience as a financial services lawyer, including in-house legal roles in superannuation and life insurance companies and working as a solicitor with a top-tier law firm. She has also served on a number of trustee committees.

Chris Liamos, Senior Ombudsman General Insurance
Chris has been with AFCA and its predecessor schemes since 2007, holding case management, jurisdictional, adjudicator and legal counsel roles. Chris has a double degree in law and science and worked extensively in the insurance sector previously.

Louise McAuliffe, Senior Ombudsman, Credit
Louise has extensive experience as a banking and finance lawyer and has held senior roles in corporate and private practice, including at partner level. She was most recently Head of Legal, Dispute Resolution Group, at ANZ.

Shail Singh, Senior Ombudsman, Investments and Advice
Shail has worked in dispute resolution for over a decade. A former financial planner and legal counsel, he has significant experience dealing with financial planning, investments, stockbroking, contracts for difference and foreign exchange disputes.

Neva Skilton, Senior Ombudsman, Transactions
Neva joined the Financial Ombudsman Service in 2012, becoming an Ombudsman in 2019. She has significant experience investigating complex banking disputes but has a particular interest in unauthorised transactions. In private practice she specialised in general insurance law.

Brenda Staggs, Senior Ombudsman, Financial Difficulty
Before joining AFCA, Brenda practised as a lawyer for 18 years, in-house, in private practice and in the social justice sector, specialising in insurance and financial services. She has worked in major law firms, with the Redfern Legal Centre and with Legal Aid NSW.

Andrew Weinmann, Senior Ombudsman, Life Insurance
Andrew became a financial ombudsman in 2017 after 15 years in practice with major law firms, including as national head of superannuation and insurance at Slater and Gordon. Andrew has a long record of service with not-for-profits and community legal centres.

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[1] https://australianfinancialcomplaintsauthority.cmail20.com/t/d-l-atrvit-tdlthkulq-r/

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