Yes—according to the Australian Financial Complaints Authority (AFCA)’s small-business guidance, a plumbing business with fewer than 100 employees can use AFCA for an otherwise eligible insurance complaint, but AFCA cannot consider the complaint if the relevant group of related companies has 100 employees or more. AFCA’s service is free, and its online complaints portal, launched on Monday 17 June 2024, allows a person who creates an account to manage the complaint throughout the process. The employee count is only one gateway: under AFCA’s adjusted compensation caps and monetary limits notice, the monetary restriction for a small-business or primary-producer credit facility is no more than $6,317,000 under changes applying to complaints received from 1 January 2024, while separate caps limit the compensation AFCA can order for each claim (figures checked 1 October 2026).
What does “fewer than 100 employees” mean in practice?
AFCA uses the employee count to determine whether an organisation meets its small-business definition. The answer can change when the business belongs to a larger related group or when its staff numbers move around the threshold.
| Business situation | AFCA’s position |
|---|---|
| The organisation has fewer than 100 employees | It meets AFCA’s small-business employee definition. |
| The relevant group of related companies has 100 employees or more | AFCA cannot consider the complaint. |
| Employee numbers fluctuate around the threshold | AFCA requires substantiation, such as wage records, showing the number of employees when the events giving rise to the claim occurred. |
| The organisation is a registered charity | AFCA can consider its complaint regardless of employee numbers or whether it carries on a business. |
| It is a not-for-profit organisation or an unregistered club | AFCA can consider the complaint if it carries on a business and has fewer than 100 employees. |
An eligible small business may be a partnership, incorporated trustee or company, including a primary production business. The related-group rule is particularly important: a business cannot rely only on the employee count of one legal entity if the relevant group of related companies has 100 employees or more.
Can AFCA take every plumbing insurance complaint?
No. AFCA says its jurisdiction over general insurance complaints depends on the product type and the particular cover involved.
| Insurance issue | AFCA’s position |
|---|---|
| Contractors All Risks, Fidelity Guarantee, Legal Liability, Professional Indemnity or Industrial Special Risks cover | AFCA says it cannot consider complaints about the cover in these categories. |
| Legal Liability cover | This includes Public Liability and Products Liability cover. |
| Listed insurance cover | AFCA may consider complaints about cover such as computer and electronic breakdown, fire or accidental damage, glass, general property, loss of profits or business interruption, and medical indemnity. |
| Insurance broker conduct | AFCA can consider conduct involving the broker’s handling of instructions or arranging the policy. |
| Insurer decision or conduct | AFCA can consider certain decisions or conduct concerning an eligible small-business insurance product. |
The exclusion of particular cover does not necessarily mean every aspect of a policy containing that cover is outside AFCA’s jurisdiction. AFCA says it may consider certain cover within an Industrial Special Risks policy, even though it cannot consider Industrial Special Risks cover itself.
For a plumbing business, the distinction between Public Liability and other cover can be decisive. Check the policy’s Product Disclosure Statement (PDS) and schedule to identify the exact product and cover, then ask AFCA to assess the particular insurer decision, conduct or broker conduct rather than assuming that every plumbing insurance dispute is accepted.
Is $6,317,000 an eligibility limit or a compensation cap?
It is a monetary restriction on jurisdiction for a relevant small-business or primary-producer credit-facility dispute. It is not the maximum amount AFCA can award as compensation.
| Limit | AFCA rule | What it controls |
|---|---|---|
| Small-business monetary restriction | A relevant credit facility must be no greater than $6,317,000 under the limits applying from 1 January 2024 | Whether AFCA can consider the particular credit-facility dispute |
| Compensation order | AFCA applies a separate limit per claim, with different limits for different claim types | The compensation AFCA may order |
| Periodic adjustment | Limits must be adjusted every three years using the higher of the percentage increases in the Consumer Price Index and Male Total Average Weekly Earnings | The amount applicable at the relevant time |
The credit-facility restriction can include a loan, lease, line of credit, guarantee, other debt instrument or a combination approved under the same credit contract or at the same time. AFCA says the exclusion applies whether the complainant is the borrower or guarantor. For a complaint lodged before 1 January 2024, the relevant version of AFCA’s Rules must be checked instead.
AFCA compensation outcomes may include compensation for direct financial loss, indirect financial loss and non-financial loss. Monetary caps apply to non-superannuation complaints, but the cap depends on the type of claim. The $6,317,000 facility threshold should therefore not be read as the value of an eligible plumbing claim or the amount AFCA might award.
How does the free, financial-firm-first process work?
If you are unsure whether AFCA can consider the complaint, AFCA recommends submitting the information anyway so it can review the matter and discuss it with you.
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Check whether the financial firm is an AFCA member. AFCA says licensed financial services providers in Australia must belong to AFCA and participate in its process. Its online search tool can confirm membership.
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Choose a complaint channel. A business can use the online form or portal, Live Chat, the free telephone line on 1800 931 678, or email at info@afca.org.au. AFCA also provides a downloadable PDF form and accepts complaints by post. Creating an account allows the complainant to manage the complaint throughout the AFCA process.
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AFCA refers the complaint to the financial firm. The firm must review it and attempt direct resolution with the complainant within a set timeframe before AFCA considers it.
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AFCA progresses the complaint if it remains unresolved. AFCA may work with the parties towards a settlement through methods such as negotiation and conciliation.
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AFCA may provide a preliminary assessment. If the complainant rejects that assessment, AFCA makes a determination. Any AFCA determination is binding on the financial firm.
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AFCA provides other help if its Rules do not cover the complaint. Third-party agencies are available for people who need additional support.
What should be ready before a complaint is lodged?
A practical complaint file should clearly identify:
- the insurance product and specific cover involved;
- the insurer decision or conduct being disputed;
- any instructions given to the broker and the broker’s role in arranging the policy;
- the business’s employee count and corporate relationship with related companies;
- wage records if the employee count fluctuated around 100 when the relevant events occurred; and
- the policy PDS, schedule and relevant correspondence with the insurer or broker.
This is general information, not financial or legal advice. Check the current AFCA small-business page and your policy’s PDS before relying on this outline.
Sources
- Small Businesses with a financial complaint | Australian Financial Complaints Authority (AFCA) — checked 1 October 2026.
- AFCA’s compensation caps and monetary limits adjusted | Australian Financial Complaints Authority (AFCA) — checked 1 October 2026.
FAQ
Does fewer than 100 employees guarantee that AFCA will accept a plumbing insurance complaint?
No. It helps establish small-business status, but AFCA also considers the related-company group, insurance product, type of cover, monetary restrictions and its Rules.
Can I complain to AFCA about public liability insurance?
AFCA says it cannot consider complaints about cover under Legal Liability, including Public Liability, in a Small Business Insurance Product. A complaint about a broker’s handling of instructions or arranging the policy, or another eligible part of the policy, may need separate assessment.
Is $6,317,000 the maximum compensation AFCA can award?
No. It is the monetary restriction for a relevant small-business or primary-producer credit facility. Compensation orders are subject to separate per-claim caps that vary according to the type of claim.
Does AFCA cost anything, and does the financial firm respond first?
AFCA’s service is free to access. After a complaint is lodged, AFCA refers it to the financial firm and asks the firm to attempt direct resolution within a set timeframe before AFCA considers it.
What happens if the employee count is close to 100?
If employee numbers fluctuate around the threshold, AFCA requires substantiation such as wage records for the period when the events giving rise to the complaint occurred. If the relevant group of related companies has 100 employees or more, AFCA cannot consider the complaint.
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