AFCA has published its FY25 fees and charges, including its Annual Registration Fee and complaint and systemic issues fees. These fees apply to complaints closed from 1 July 2024.  

Responding to complaint volumes   

Complaints to AFCA have grown by a staggering 56% since the beginning of FY22. This material and sustained increase shows no signs of slowing, instead we continue to see consistently high volumes across most sectors.    

In an effort to reduce complaints, AFCA has engaged heavily with industry – sharing insights, data and opportunities for improvement. Our goal is to improve practices so that firms see fewer complaints come to AFCA in the first place.     

However, high volumes persist, and our forecasting suggests this trend will continue into next year.

In that context, AFCA has had to review its FY25 fees and charges so that it can respond appropriately and uphold its obligations to resolve complaints in a fair, efficient and timely way.    

Reviewing our fees and charges   

The design of AFCA’s funding model has always meant that our fees may increase or decrease as demand for our service changes.    

Based on complaint volumes and projected growth, AFCA’s Board has approved an increase of 27.7% to our fees and charges in FY25 (from 1 July 2024).    

This decision reflects the effort and resourcing required to manage an unprecedented number of complaints – which as outlined above have grown by more than 56% since the beginning of FY22.   

In comparison, our fees and charges have increased by only 23% (including CPI) over the same period – disproportionately lower than the growth in demand.  

We appreciate this decision means an increase in cost to member financial firms however it’s important AFCA responds to the growing demand for its service and can operate efficiently. 

To align with our ‘user pays’ approach to funding, the fee increase has been weighted towards our user charge – which will flow through to the heavier users of our service.   

FY25 Annual Registration Fee 

Our Annual Registration Fee – payable by all AFCA members – will increase by CPI only (3.5%). For financial firm members the FY25 Annual Registration Fee will be $388.69. For Authorised Credit Representative members, it will be $68.29. 

Importantly, 99% of our members will only pay the Annual Registration Fee in FY25.  

All members will also continue to receive coverage of their first five complaints closed within a financial year for free. 

Complaint and systemic issues fees 

When reviewing our complaint and systemic issue fees, we took a tiered approach that reflects complaint volumes by closure point. This way, resourcing can be allocated where it’s needed most.    

An updated fee schedule which shows fees for individual complaint and systemic issues fees, is available on our website. 

User charge estimates 

To ensure members have the information they need to forecast and budget for AFCA fees and charges in FY25, AFCA has produced user charge estimates for applicable members (those who received six or more complaints in the financial year).  

AFCA will send user charge estimates to these members in April. These will be sent by email to the ‘Finance Contact’ associated with each applicable member. 

To produce the user charge estimate, AFCA applied complaint closures from the previous 12 months (1 March 2023 to 29 February 2024) to AFCA’s user charge calculation method. You can find out more about how AFCA calculates user charges here.    

Actual FY25 user charges will be different to the estimate we send in April, as it will be based on firm performance and complaint profiles between 1 July 2023 and 30 June 2024, as well as other key factors including the number and performance of other members liable for the user charge.   

AFCA will finalise actual FY25 user charges at the end of the financial year and will issue user charge invoices in August 2024.