Superannuation Dispute with Your Fund? Get Expert Help Through AFCA

The Australian Financial Complaints Authority (AFCA) is an independent external dispute resolution (EDR) scheme authorised to resolve complaints about superannuation fund trustees and insurers. AFCA replaced the Superannuation Complaints Tribunal (SCT) in November 2018 and is approved by the Australian Securities and Investments Commission (ASIC). AFCA applies a fair and reasonable standard — it can consider whether a trustee's decision was fair in all the circumstances, not just whether it complied with the fund's rules. It is free to use and its determinations are binding on the fund if accepted by the complainant.

AFCA can resolve complaints about superannuation fund administration decisions (including benefit payment, death benefit, TPD, income protection, insurance, fees, and rollovers) where the trustee has exercised a discretion or made a decision affecting a member. AFCA cannot consider complaints about the management of the fund as a whole (as opposed to individual decisions), decisions made before 1 January 1995, complaints from self-managed super funds (SMSFs), or certain policy decisions. If your complaint falls outside AFCA's jurisdiction, a lawyer can advise on alternative pathways including the courts or ASIC.

For most superannuation complaints, you must lodge with AFCA within two years of the date of the trustee's written decision. Some complaints have different time limits — for example, where the fund has not issued a decision, or where the matter involves ongoing conduct rather than a specific decision. AFCA has limited discretion to accept complaints outside these time limits. Given that delays can permanently bar a complaint, seeking legal advice as soon as you receive a fund decision is strongly recommended.

AFCA's super complaint process typically follows these stages: (1) Registration — AFCA registers your complaint and sends it to the fund; (2) IDR referral — AFCA may refer the matter back to the fund's internal dispute resolution process if not already completed; (3) Case management — AFCA case managers attempt to facilitate a resolution through discussion with both parties; (4) Conciliation — for more complex matters, a conciliation conference is held; (5) Determination — if unresolved, an AFCA panel makes a binding written determination. Each stage can resolve the complaint and many are settled well before determination.

AFCA can direct a trustee to vary or reverse a decision, pay a benefit, pay compensation for financial loss caused by maladministration, credit a member's account, and in some circumstances pay interest on late payments. For superannuation complaints, AFCA's monetary limit for compensation is $1,062,500 (reviewed periodically). AFCA can also direct the fund to take specific action, such as applying investment instructions correctly. AFCA cannot award legal costs against the fund, but remedies ordered can be substantial in major disputes.

If you accept AFCA's determination, it becomes binding on the fund. If you do not accept AFCA's determination, you are free to pursue the matter in court — however, you then bear the risk of litigation costs. The fund is bound by any determination you accept, and cannot refuse to comply. Court proceedings may also be commenced independent of AFCA where the complaint involves conduct outside AFCA's jurisdiction, where the amount in dispute exceeds AFCA's monetary limits, or where urgent interlocutory relief is needed.