No. According to AFCA’s guidance for small businesses with a financial complaint, AFCA does not take into account the responsible-lending provisions of the National Consumer Credit Protection Act 2009 (Cth), the National Credit Code or RG209 when assessing a small-business loan complaint.
Figures checked 1 October 2026.
That means there is no test of “unsuitability” for a small-business loan, and a small-business lender is not required to make the same level of enquiries as a consumer lender; AFCA can still assess due care and skill and misleading or unconscionable conduct under the Australian Securities and Investments Commission Act 2001 (Cth).
How does AFCA treat small-business lending differently?
AFCA says it handles small-business lending complaints separately because lenders’ obligations differ significantly from their obligations when lending to consumers.
| Consumer responsible-lending element | AFCA’s position for a small-business loan complaint |
|---|---|
| Responsible-lending provisions of the National Consumer Credit Protection Act 2009 (Cth) | Not taken into account |
| Responsible-lending provisions of the National Credit Code | Not taken into account |
| RG209 responsible-lending framework | Not taken into account |
| Unsuitability test | No such test applies to a small-business loan |
| Level of lender enquiries | The lender need not make the same level of enquiries required for consumer lending |
The practical distinction is the framework used to assess the complaint. AFCA does not apply the consumer responsible-lending route, but that does not mean a small-business complaint has no possible merit.
What duties can still matter in a loan complaint?
AFCA reviews the circumstances of the complaint alongside lenders’ obligations under statute, good industry practice and codes of practice. In particular, its guidance identifies:
- the implied warranty that a financial service will be provided with due care and skill under the ASIC Act;
- the statutory prohibition on misleading or unconscionable conduct under that Act; and
- relevant obligations found in good industry practice and codes of practice.
These duties are separate from the consumer unsuitability test. A business borrower may therefore complain about the conduct of the lending process even though AFCA is not assessing the loan through the consumer responsible-lending framework.
Can AFCA still consider a small-business loan complaint?
Yes. AFCA can assist a small business in resolving a complaint about a financial firm and can consider complaints about business finance, including small-business loans, credit cards, commercial bills, hire purchases, instalment leases, letters of credit, lines of credit and overdrafts.
That does not make every complaint eligible. AFCA still applies its Rules, including its business, amount and subject-matter limits. If you are unsure whether a complaint falls within its scope, AFCA recommends submitting the information so it can review it and discuss the issue with you.
Is every small-business loan complaint within AFCA’s jurisdiction?
No. The following are key scope checks from AFCA’s guidance:
| Scope issue | AFCA position |
|---|---|
| Number of employees | AFCA defines a small business as an organisation with fewer than 100 employees |
| Related companies | AFCA cannot consider a complaint if the relevant group of related companies has 100 employees or more |
| Employees near the threshold | AFCA may require substantiation, such as wage records, showing employee numbers when the events giving rise to the complaint occurred |
| Registered charity | AFCA can consider a registered charity’s complaint regardless of employee numbers or whether it carries on a business |
| Facility amount | For complaints lodged on or after 1 January 2024, AFCA cannot consider a complaint about a small-business credit facility exceeding $6.3 million |
| Borrower or guarantor | The $6.3 million exclusion applies whether the complainant is the borrower or guarantor |
| Earlier complaints | Complaints lodged before 1 January 2024 must be checked against the relevant version of AFCA’s Rules |
A credit facility may include a loan, lease, line of credit, guarantee, another debt instrument, or a combination approved under the same contract or at the same time.
How does AFCA handle the complaint?
AFCA describes the process as follows:
- Submit the complaint. You can use the online form, telephone, email or post. Creating an account lets you manage the complaint throughout AFCA’s process, and AFCA’s service is free to access.
- The financial firm reviews it. AFCA refers the complaint to the financial firm and asks it to attempt direct resolution within a set timeframe.
- AFCA considers the complaint. If the firm does not resolve it within that timeframe, AFCA progresses the complaint for further consideration.
- Settlement may be attempted. AFCA may work with the parties using methods such as negotiation and conciliation.
- A determination may follow. AFCA may provide a preliminary assessment. If the complainant rejects that assessment, AFCA makes a determination, which binds the financial firm.
What should you check before making a complaint?
Check the current AFCA regulator page and the relevant version of its Rules before relying on a complaint deadline, monetary limit or eligibility category. For a lending dispute, also check the loan contract and related documents. If the complaint concerns insurance, check the policy’s Product Disclosure Statement, or PDS, as well.
This is general information, not financial or legal advice.
Sources
FAQ
Does AFCA apply RG209 when reviewing a small-business loan complaint?
No. AFCA says it does not take into account the responsible-lending provisions of the National Consumer Credit Protection Act 2009 (Cth), the National Credit Code or RG209 when assessing a small-business loan complaint.
Does the absence of an unsuitability test mean AFCA ignores business loans?
No. AFCA can still consider small-business loan complaints by examining the circumstances and the lender’s obligations under applicable statutes, good industry practice and codes of practice.
Can AFCA consider misleading or unconscionable conduct?
Yes. AFCA’s review can include the statutory prohibition on misleading or unconscionable conduct under the Australian Securities and Investments Commission Act 2001 (Cth), together with the implied warranty of due care and skill.
Is a business loan above $6.3 million always outside AFCA?
Not without considering the lodgement date. AFCA cannot consider a complaint about a small-business credit facility exceeding $6.3 million when the complaint is lodged on or after 1 January 2024. Earlier complaints must be checked against the relevant version of AFCA’s Rules.
Does a small business have to make the same enquiries as a consumer lender?
No. AFCA states that a small-business lender is not required to make the same level of enquiries as a lender providing consumer credit. This does not remove other duties, including due care and skill and the prohibitions on misleading or unconscionable conduct.
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