According to the Australian Financial Complaints Authority (AFCA), under changes effective 1 January 2024, it can consider a small-business or primary-producer dispute where the credit facility is no greater than $6,317,000. That figure is the monetary restriction on AFCA’s jurisdiction, not the maximum compensation it can award. Under the same changes, a consumer dispute is within the monetary restriction where the amount claimed is no more than $1,263,000; the source gives no publication date (figures checked 1 October 2026).
What does the $6,317,000 small-business limit mean?
For a small business or primary producer, AFCA states the threshold by reference to the credit facility, not the compensation sought. The distinction matters: a dispute may concern a loss greater than the facility amount, but that does not make $6,317,000 the maximum compensation AFCA can order.
The monetary tests work as follows:
| Test | What AFCA considers | Amount or rule |
|---|---|---|
| Small business or primary producer | The credit facility | No greater than $6,317,000 |
| Consumer | The amount being claimed | No more than $1,263,000 |
| Compensation order | The award AFCA can make for each claim | A separate per-claim cap that depends on the claim type |
Meeting the relevant monetary threshold only means the dispute passes this part of AFCA’s jurisdictional test. It does not mean AFCA must accept the complaint or find in the claimant’s favour.
Is $6,317,000 also the maximum compensation?
No. AFCA’s compensation order is limited per claim, and the applicable limit differs depending on the type of claim.
AFCA says its compensation limits cover the maximum amount it can award a consumer or small business for complaints about:
- banking and finance;
- general insurance;
- life insurance; and
- investments and advice.
These compensation caps should not be confused with the monetary restriction that determines whether AFCA can consider a dispute. The $6,317,000 threshold is not a substitute for the applicable compensation cap, and meeting it does not guarantee an award.
Why is the consumer threshold $1,263,000?
The consumer and small-business tests use different measures:
- For a consumer, AFCA refers to the amount being claimed.
- For a small business or primary producer, AFCA refers to the credit facility.
- For an award, AFCA applies a separate cap based on the claim type.
The $1,263,000 consumer threshold therefore should not be treated as the small-business credit-facility limit, just as the $6,317,000 business threshold is not a consumer compensation cap.
These limits also do not apply in AFCA’s superannuation jurisdiction. Superannuation complaints are unaffected by this adjustment.
When did the limits take effect?
The changes came into effect on 1 January 2024 and apply to all complaints AFCA received from that date.
The AFCA Rules require AFCA to adjust its monetary limits every three years, using the higher of the percentage increase in the Consumer Price Index and the Male Total Average Weekly Earnings. The figures should therefore be checked against the current AFCA page rather than treated as permanent.
What should a business check before relying on the figure?
Before assessing the threshold, identify:
- whether the claimant is a consumer, small business or primary producer;
- the relevant credit-facility amount for a business dispute;
- the amount being claimed in a consumer dispute;
- the type of claim, because the compensation cap varies; and
- the date AFCA received the complaint, if it has already been submitted.
Check the current AFCA page for the monetary and compensation figures that apply. Also review the relevant policy’s PDS for its contract terms and dispute process.
This is general information, not financial or legal advice. Check the regulator page and your policy’s PDS before relying on a particular limit.
Sources
FAQ
Does a $6,317,000 credit facility mean AFCA can award $6,317,000?
No. $6,317,000 is the monetary threshold for AFCA to consider a qualifying small-business or primary-producer credit-facility dispute. Any compensation order remains subject to a separate per-claim cap.
Is the small-business threshold based on the amount claimed?
AFCA states the small-business and primary-producer threshold by reference to the credit facility. By contrast, its consumer threshold uses the amount being claimed.
What is the relevant consumer threshold?
Under the changes effective 1 January 2024, AFCA can consider a consumer dispute where the amount claimed is no more than $1,263,000. This is a jurisdictional threshold, not the maximum compensation for the claim.
Do these limits apply to superannuation complaints?
No. The limits do not apply in AFCA’s superannuation jurisdiction, so superannuation complaints are unaffected by this adjustment.
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