The proposed Australian Financial Complaints Authority (AFCA) – a one-stop shop for resolving financial disputes of consumers and small businesses – has been given the go-ahead by the Senate and is expected to be operational from the second half of 2018.

The new entity will replace three existing oversight bodies- Financial Ombudsman Service, Credit and Investments Ombudsman and the Superannuation Complaints Tribunal.

The bill for the new body was opposed by the Labor and the Greens, who intended to exclude superannuation disputes from AFCA’s remit. However, it was passed after garnering the support of crossbenchers.

The bill was given the green light after additional certainty around superannuation disputes, and rule guaranteeing the independence of the AFCA chair. The operations of AFCA are expected to be reviewed 18 months from its operation date.

Minister for revenue and financial services Kelly O’Dwyer said: “AFCA is a landmark reform that will overhaul how financial disputes are dealt with in Australia. It will operate under significantly higher monetary limits and compensation caps.

“This will provide considerably greater access to redress for consumers and small businesses, and in particular, farmers, who will have access to up to $2 million in compensation under the new AFCA scheme.”

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