Thank you for taking the time to provide feedback on our consultation. This consultation is now closed. We will be reviewing feedback and submissions over the coming weeks, and will incorporate any necessary amendments to the approach.

About AFCA’s approach to claims for non-financial loss  

AFCA’s Approach to claims for non-financial loss is not new. It sets out AFCA’s approach to assessing these claims by outlining:  

  • the circumstances in which a claim for non-financial loss can arise  
  • AFCA’s expectations of a complainant in dealing with a problem 
  • limits on awards of compensation  
  • principles applied in awarding compensation.  

Proposed amendments  

AFCA’s current Approach to claims for non-financial loss includes case studies, analysis and examples of compensation that was awarded in particular circumstances.  

However, the current Approach does not include an objective scale to help parties understand how AFCA might determine the appropriate amount of non-financial loss to be awarded. 

To clarify this and improve transparency, AFCA is proposing to add a matrix as a guide on what might be an appropriate range for an award of compensation for non-financial loss.  

The matrix explains how much compensation AFCA might choose to award based on the impact of the firm’s conduct on the complainant, and duration of that impact. 

AFCA has also updated its case studies and reviewed the Approach to clarify its jurisdiction and ensure consistency of language.  

AFCA's current Approach to non-financial loss claims (last updated October 2022)

AFCA's proposed amended Approach to non-financial loss claims (March 2023)

About the consultation  

Consultation on AFCA’s Approach to claims for non-financial loss is taking place from 3 April to 1 May 2023

Although the proposed changes to the Approach are not substantial, AFCA wishes to consult with external stakeholders to ensure there are no unintended consequences as a result of the changes. 

AFCA’s consultation process has been designed to be flexible and accessible. This means, stakeholders can provide feedback, comments and questions in meetings with AFCA people, in writing (via email and via post), or via a formal submission. 

Making a submission 

To share your feedback, comments, questions or submission, you can: 

  1. Email: 
    If you have a formal submission document, please attach this to your email. 
  2. Write to: 
    Senior Consultant – Approach Frameworks 
    Australian Financial Complaints Authority 
    GPO Box 3 
    Melbourne VIC 3001 

Contact us 

To contact us about AFCA’s Approach to claims for non-financial loss or if you have questions about the consultation, please email

Frequently Asked Questions 

What is an AFCA Approach document? 

AFCA’s Approach documents help consumers and financial firms better understand how we reach decisions about key issues. These documents explain the way AFCA might approach some common issues and complaint types. 

What is compensation for non-financial loss? 

Compensation for non-financial loss is compensation for significant distress, delay and inconvenience. AFCA can require a financial firm to compensate a complainant for non-financial loss caused by the firm’s conduct.

How much can AFCA award for non-financial loss? 

The maximum amount AFCA can award is $5,400 per claim.

Who sets the maximum amount AFCA can award for non-financial loss claims?

AFCA does not set the maximum amount it can award for claims for non-financial loss. Any increase to the amount AFCA can award needs approval from the Australian Securities and Investments Commission (ASIC).

Is AFCA going to amend how much it can award for non-financial loss?

No. AFCA does not set its compensation limits 

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