Banking and finance accounted for 66,971 disputes
The Australian Financial Complaints Authority received almost 120,000 complaints from consumers and small businesses during the 2025-26 financial year, the highest number in its history.
Complaints increased across every industry during the 12-month period. Banking and finance disputes made up more than half of all AFCA complaints during the 2025-26 financial year, with 66,971 lodged.
David Locke, AFCA Chief Ombudsman and chief executive officer, said the record total showed many Australians were still under financial pressure.
“Nobody wants to see this number of complaints. The data reinforces the need for firms to resolve issues early where they can,” Locke said.
In banking and finance, scams and unauthorised transactions were the top two issues.
Locke said preparations were under way for AFCA’s expanded scams role. The Australian Scams Ombudsman, operated by AFCA, will begin accepting complaints about banks, telcos and digital platforms from 31 March 2027.
He said the new body would give consumers an independent place to turn when they could not resolve a scam complaint directly with the organisations involved.
General insurance logs fifth straight rise
General insurance generated 36,022 complaints during the 2025-26 financial year, marking a fifth year of growth for the industry.
Motor vehicle insurance was the most complained about general insurance product, with 14,430 complaints lodged during the year.
“General insurance complaints have increased every year. While we recognise the impact of climate-related events and supply chain issues, insurers remain responsible for keeping customers informed, explaining delays and communicating clearly throughout the claims process,” Locke said.
Meanwhile, complaints about life insurance remained broadly stable. Complaints about funeral insurance remained a continuing area of concern, with Locke pointing to difficulty cancelling policies and unclear premiums.
Superannuation complaints rose sharply in 2025-26. AFCA received 8,755 superannuation complaints during the financial year, up 42% on the previous year.
Complaints about funds refusing to pay claims rose by 80%. Locke said funds must respond to members’ concerns and focus on good outcomes as more Australians move into and through retirement.
Large-scale investment collapses drove investments and advice complaints. Complaints about the Shield and First Guardian Master Funds made up the bulk of those cases.
Locke said he recognised the stress and uncertainty those investors had already endured, and AFCA remained committed to progressing the matters as quickly as possible.
Financial difficulty complaints rose 17% to 5,566 during the 2025-26 financial year. Financial firms failing to respond to requests for assistance remained the top issue in that category.
“Complaints are already increasing in the first quarter of this financial year and if that trend continues we will receive even higher numbers next year.”
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