Can AFCA compensate a cleaning business for indirect financial or non-financial loss?

Yes—according to the Australian Financial Complaints Authority (AFCA) small-business guidance, an outcome can include compensation for direct financial loss, indirect financial loss and non-financial loss, but any award remains subject to AFCA’s Rules, monetary limits and claim-type caps. For a cleaning business, AFCA defines a small business as an organisation with fewer than 100 employees; where the dispute concerns a small-business or primary-producer credit facility, AFCA’s compensation-limit notice sets the jurisdictional limit at no more than $6,317,000 from 1 January 2024, while compensation is limited per claim by claim type (figures checked 1 October 2026).

What loss can AFCA compensation include?

AFCA identifies these possible compensation categories:

• Direct financial loss
• Indirect financial loss
• Non-financial loss

Their inclusion does not mean every complaint qualifies for every category. The small-business guidance does not define each category, explain when a particular loss falls within it, or provide a formula for calculating compensation.

The compensation notice also does not state that direct and indirect financial loss are automatically cumulative. It says compensation is limited per claim, with different limits depending on the type of claim, but does not list the amount of each claim-type cap on that page. Monetary caps apply to AFCA outcomes for non-superannuation complaints.

Is my cleaning business small enough for AFCA?

Eligibility depends on the legal entity, employee count and the relevant corporate group.

A business with fewer employees may therefore still fall outside AFCA’s jurisdiction if its relevant related-company group has reached the threshold.

Is the $6,317,000 limit the maximum compensation award?

No. The amount concerns AFCA’s monetary jurisdiction, not the compensation it must award.

AFCA’s Rules require monetary limits to be adjusted every three years. The current AFCA page should therefore be checked before relying on an amount stated in an older decision, policy or article.

Which cleaning-business insurance complaints can AFCA consider?

AFCA says its jurisdiction over general insurance complaints depends on the product type. It can consider complaints about an insurer’s decision or conduct concerning an eligible small-business insurance product, and complaints about an insurance broker’s conduct in following instructions or arranging a policy.

AFCA’s listed eligible cover types include:

• Computer and electronic breakdown
• Fire or accidental damage
• Glass
• General property
• Loss of profits or business interruption
• Medical indemnity

By contrast, AFCA says it cannot consider complaints about these listed covers:

• Contractors All Risks
• Fidelity Guarantee
• Legal Liability, including public liability and products liability
• Professional Indemnity
• Industrial Special Risks

AFCA also notes that excluding a particular cover does not mean it has no jurisdiction over every aspect of a policy containing it. It may be able to consider certain cover within an Industrial Special Risks policy.

A cleaning-business policy may contain several types of cover, so the exact product and section of the policy matter. The policy’s Product Disclosure Statement (PDS) should be checked alongside AFCA’s current scope guidance.

How can a cleaning business make an AFCA complaint?

AFCA provides several channels, and its service is free to access.

AFCA refers a lodged complaint to the financial firm and asks that firm to review it and attempt direct resolution within a set timeframe. If the complaint remains unresolved, AFCA progresses it for further consideration.

AFCA may then work with the parties to seek a settlement through methods such as negotiation and conciliation. If that does not resolve the matter, it may provide a preliminary assessment of the complaint’s merits. If the complainant rejects that assessment, AFCA makes a determination, which is binding on the financial firm.

Third-party agencies are available for people who need additional support. AFCA also recommends submitting information for review even when a business is unsure whether its complaint falls within scope.

What should be checked before making a complaint?

Before relying on an AFCA outcome, check:

• The business’s legal structure and employee count, including the relevant related-company group.
• Wage records if employee numbers fluctuate around 100.
• The exact financial product and, for insurance, each type of cover.
• The current AFCA eligibility rules, monetary limits and claim-type caps.
• The policy’s PDS, particularly its cover descriptions, exclusions and conditions.
• The contract, correspondence, chronology and documents supporting each alleged loss.

This preparation does not replace AFCA’s review. If a complaint does not meet the requirements of AFCA’s Rules, AFCA will direct the complainant to other sources of help.

This is general information, not financial or legal advice. Check AFCA’s regulator page and the policy’s PDS before making a decision or lodging a complaint.

Sources

• Small Businesses with a financial complaint | AFCA
• AFCA’s compensation caps and monetary limits adjusted | Australian Financial Complaints Authority

FAQ

Does AFCA listing indirect or non-financial loss mean every claimed amount can be compensated?

No. AFCA confirms that these are possible outcome categories, but it does not say every complaint qualifies. Classification, evidence, AFCA’s Rules and the applicable caps determine whether compensation is awarded.

Is $6,317,000 the maximum amount AFCA can award a cleaning business?

No. It is the monetary restriction for a small-business or primary-producer credit facility. Any compensation order is separately limited per claim, with different caps applying to different claim types.

Can AFCA consider a complaint about lost profits or business interruption?

AFCA lists loss of profits and business interruption among the insurance cover types it may consider complaints about. The product must fall within AFCA’s jurisdiction, and any compensation remains subject to the Rules and applicable caps.

Can AFCA consider a public liability complaint?

AFCA says it cannot consider complaints about Legal Liability cover, including public liability and products liability. The exact policy and its other cover should be checked on AFCA’s current page.

What should I do if I am unsure whether AFCA can consider the complaint?

AFCA recommends submitting the information anyway so it can review the scope and discuss the matter with the complainant. Use the online form, Live Chat, telephone, email or post, and check the current AFCA guidance before submitting.