Highlights

  • AFCA's 2025–26 annual review shows superannuation complaints rose 42% to 8,755, within almost 120,000 complaints overall.
  • Complaints about funds refusing to pay claims jumped 80%, the fastest growth reported inside superannuation, the review shows.
  • Disability claims were admitted 88% of the time and took 3.9 months; death claims reached 98% in a month.
  • A special CSLR levy of $170.26 million awaits possible disallowance, with APRA-regulated super funds asked to pay $23.79 million.

One day to go. On Thursday 29 October, ASIC and APRA are scheduled to face Senate Estimates, and the numbers they will be asked about are not flattering. The Australian Financial Complaints Authority's 2025–26 annual review shows super complaints up 42% to 8,755, while complaints about refused claims leapt 80%. For trustees, the figures raise a pointed question about how members are treated at their most vulnerable moments.

What AFCA reported

AFCA released its 2025–26 annual review on 22 October 2026. It recorded almost 120,000 complaints across all financial products, a record, and superannuation accounted for 8,755 of them. The Shield and First Guardian collapses drove most complaints about investments and advice.

Super remains a small slice, roughly 7% of the total, but the growth stands out. A 42% rise to 8,755 implies the previous year's total was a little over 6,150, a calculation and not an AFCA figure. The raw number behind the 80% rise has not been quoted.

Why claims are being disputed

The summary does not break down which claims were refused. Insurance is one likely area, because most members hold default cover through their fund, typically death, total and permanent disability (TPD) and, in some funds, income protection.

APRA and ASIC industry data for 2025–26 put the death claim admitted rate at 98%, with about a month to finalise. TPD claims fared worse: an 88% admitted rate and 3.9 months on average. TPD often turns on whether a member meets the policy's definition of disability, which involves medical evidence.

A hypothetical TPD year

Say a fund receives 1,000 TPD claims. At 88%, about 880 are admitted, leaving around 120 that were not, a group that can include declined and withdrawn claims.

If those 120 members waited the average 3.9 months, they would be about four months in before learning the outcome. Some may then complain to the fund and, if still unhappy, go to AFCA. These numbers are illustrative only.

Regulators, collapses and who pays

ASIC's 2025–26 annual report, released on 19 October, recorded $830 million in civil penalty orders and more than $580 million in consumer repayments and refunds. At 30 June 2026 it had 15 enforcement proceedings against 30 defendants over the Shield and First Guardian collapses, allegations yet to be decided by the courts. Death benefit claims handling remains an ASIC focus.

The complaints surge feeds the cost of the Compensation Scheme of Last Resort (CSLR), which pays eligible consumers when a firm cannot pay an AFCA determination. A special levy of $170.26 million was tabled in mid-October, with APRA-regulated super funds to pay $23.79 million. Last year, super trustees paid $6.1 million of a $47.3 million levy. The levy takes effect unless disallowed within 15 sitting days.

The Super Members Council said it "fails the pub test". SMSF Association CEO Peter Burgess said SMSFs will not pay a special levy this year, and Assistant Treasurer Daniel Mulino said feedback would inform future levies.

APRA's 2026 performance test, released on 28 August, found 12 of 547 products failed, including MySuper product BUSS (Queensland).

If a claim is refused

Members can generally complain to their fund first, since trustees must run an internal dispute resolution process. Unresolved complaints can usually go to AFCA, which is free for consumers, though time limits can apply.

AFCA can try negotiation or conciliation before a formal decision. A determination the member accepts binds the fund, while a member who declines keeps other options, including the courts. Keeping medical reports and correspondence helps if a dispute escalates.