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More than 400,000 complaints sent to AFCA in first 5 years

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David Locke, Chief Ombudsman and Chief Executive Officer of the Australian Financial Complaints Authority (AFCA)
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More than 400,000 complaints sent to AFCA in first 5 years

 

Australian Financial Complaints Authority

Australia’s financial dispute resolution scheme has reached a major milestone – five years of operation. Consumers have taken more than 400,000 disputes to the Australian Financial Complaints Authority (AFCA) in that time, securing a total of $1.2 billion in compensation and refunds.

This was during some of the most trying times financial firms and their customers have faced, including a global pandemic, rising interest rates, a sharp escalation in scams activity and the financial impact of significant natural disasters.

Since starting operations in November 2018, AFCA has worked with more than 16,500 victims of scams, more than 7,500 people affected by natural disasters (excluding COVID), and more than 30,000 people experiencing financial difficulty. It registered more than 17,000 COVID-related complaints, helping to resolve disputes involving financial products such as travel insurance and superannuation.

In addition, AFCA’s systemic issues work – where it identifies wider issues than a single complaint – resulted in 4.9 million people receiving more than $340 million.

“We have dealt with hundreds of thousands of cases over the past five years, but we are fully aware that behind every complaint is an individual, a family or small business,” AFCA’s Chief Executive Officer and Chief Ombudsman, David Locke, said. “We know how stressful a financial dispute can be, and how critical it is to help consumers and firms resolve their differences.

“An ombudsman service also plays an important role in supporting public confidence in engaging with the financial services sector, because we are here to help when consumers and firms can’t resolve disputes on their own. We work to contribute to a fair and efficient financial services sector.”

David Locke, Chief Ombudsman and Chief Executive Officer of the Australian Financial Complaints Authority (AFCA)

David Locke, Chief Ombudsman and Chief Executive Officer of the Australian Financial Complaints Authority

With complaints reaching a record 97,000 in the last financial year alone, AFCA’s services had never been needed more, Mr Locke added. “But our hope is that, working with firms, we will see a significant improvement in their in-house complaints handling. Consumers shouldn’t have to be escalating this volume of disputes to AFCA.”

He congratulated the 70 per cent of AFCA Scheme member firms that have never had a complaint reach AFCA. “While we will always point out areas of concern, to help inform consumers, firms, regulators and government, it’s important for the community to understand that the majority of financial firm members do not generate any complaints,” Mr Locke said.

Mr Locke said AFCA continued to be a cheaper and more efficient alternative to a court process for both firms and consumers. Over its first five years AFCA resolved 60 per cent of cases in less than 60 days – mostly by helping the two sides reach agreement. Only 6 per cent of cases needed to progress to a formal decision.

AFCA was set up after the 2017 Ramsay Review recommended the establishment of a single scheme to handle disputes formerly handled by the Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal.

AFCA is a not-for-profit organisation funded by fees and charges paid by member firms. Its service is free for consumers and small business complainants.

A Treasury-led Independent Review in 2021 found AFCA was “performing well in a difficult operating environment and a changing regulatory landscape” and reaffirmed its impartiality and its fairness jurisdiction.

Key facts

AFCA was established on 1 November 2018.  The following data is as at 31 October 2023.

  • 402,346 complaints registered
  • $1.18 billion in compensation or refunds for consumers and small businesses
  • 68% of complaints resolved by agreement
  • 6% of cases progressed to a formal decision
  • 46,097 members of AFCA Scheme (10,494 firms plus 35,603 individual authorised credit representatives)
  • 69% of financial firm members have not had a complaint made against them

 

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Help Shape the Future of Murwillumbah’s CBD: Community Input Needed

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Help Shape the Future of Murwillumbah’s CBD: Community Input Needed
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Help Shape the Future of Murwillumbah’s CBD: Community Input Needed

 

By Robert Heyward

Business Murwillumbah, also known as the Murwillumbah & District Business Chamber, is calling for community involvement to plan the future of the town’s central business district (CBD). With support from Tweed Shire Council, the Chamber has secured a $316,666 grant through the NSW Government’s Community Improvement District (CID) Pilot Program, aimed at revitalising local economies and business hubs across the State.

The program fosters business-led partnerships to enhance local trading environments, encouraging residents to shop, dine, and enjoy activities within their neighbourhoods. The goal is to create vibrant, foot-traffic-friendly spaces that benefit both businesses and the wider community.

Business Murwillumbah Treasurer Phillip Hepburn described this as an exciting opportunity for locals to contribute to the future of the town.

“This CID Pilot project presents an incredible chance for Murwillumbah’s CBD to thrive. It allows us to bring new ideas to life that will benefit the community and local businesses alike,” Hepburn said. “This is about reimagining how we engage with our town centre, both during the day and at night, and building a sustainable future for our CBD.”

Johnny Francos owner Adam Housen, Business Murwillumbah Treasurer Phillip Hepburn and Council’s Business Development Officer Vanessa Rose are excited about plans to activate the Murwillumbah CBD.

With input from local businesses, schools, and community groups, the project will focus on revitalising key areas, including Murwillumbah Street, Proudfoots Lane, and Wollumbin Street. Public feedback is essential for developing a plan that reflects the needs and values of the community.

Tweed Shire Council’s Program Leader for Destination and Industry Development, Nicole Manderson, praised the initiative. “It’s fantastic to see business leaders in Murwillumbah committed to better activating the CBD, and we are working closely to support their efforts,” Manderson said.

Get Involved

Residents can contribute ideas and feedback through a variety of channels:

  • Online Survey: Share your thoughts by completing the survey by Monday, 7 October 2024.
  • Pop-up Stalls: Visit stalls at Sunnyside Mall, Murwillumbah Farmers Market, or Murwillumbah Street between Tuesday, 24 September, and Thursday, 26 September 2024.
  • Free ‘Walkshops’: Dive deeper into the town’s spaces and share improvement ideas during scheduled walkshops on the same dates.

For more information or to participate, visit here.

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Australia’s August Unemployment Drops to 9.1% with Part-Time Job Surge

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August Unemployment
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Australia’s August Unemployment Drops to 9.1% with Part-Time Job Surge

 

In August 2024, Australia’s ‘real’ unemployment rate decreased by 1%, dropping to 9.1% of the workforce, following a significant rise in part-time employment. The unemployment count fell by 174,000 to 1,423,000. This reduction was driven by an increase of 136,000 part-time jobs, bringing total part-time employment to 4,901,000, while full-time employment remained steady at 9,387,000.

Overall employment rose by 133,000 to 14,288,000 in August, reflecting growth in part-time jobs. Fewer Australians were looking for both full-time and part-time work, contributing to the decline in unemployment.

Roy Morgan August Unemployment & Under-employment (2019-2024)

Roy Morgan Unemployment & Under-employment (2019-2024)
Source: Roy Morgan Single Source January 2019 – August 2024. Average monthly interviews 5,000.
Note: Roy Morgan unemployment estimates are actual data while the ABS estimates are seasonally adjusted.

Labour Market Trends

Roy Morgan’s unemployment estimates, based on a national survey of Australians aged 14 and above, classified anyone seeking work as unemployed. The ‘real’ unemployment rate is calculated as a percentage of the total workforce, both employed and unemployed.

Despite the improvement in employment figures, the combined unemployment and under-employment rate still stands at 18.6%, affecting 2.92 million Australians. The under-employed, those working part-time but seeking more work, represented 9.5% of the workforce.

Michele Levine, CEO of Roy Morgan, highlighted that the surge in part-time jobs drove the drop in unemployment, while the rapidly growing workforce—up by 377,000 over the past year—has been a key factor in the country’s employment growth.

The ABS comparison puts Roy Morgan’s 9.1% unemployment figure well above the ABS estimate of 4.2% for July. However, when combined with under-employment, the ABS figure reaches a comparable 10.5%.

Roy Morgan August Unemployed and ‘Under-employed’* Estimates

Roy Morgan Unemployed and ‘Under-employed’* Estimates

Impact and Challenges

While the job market has made strides in absorbing the growing workforce, the high level of labour under-utilisation remains a challenge. Addressing the persistent issue of unemployment and under-employment will continue to be a priority for the Australian government.

 

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ITECA Releases Its Student-Centric Blueprint For The Next Australian Parliament

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Troy Williams ITECA
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ITECA Releases Its Student-Centric Blueprint For The Next Australian Parliament

 

The Independent Tertiary Education Council Australia (ITECA) has unveiled a policy reform agenda aimed at putting students at the forefront of skills training and higher education in the lead-up to the next federal election. The blueprint, described as student-centric, challenges the current institution-focused policies, which ITECA argues are failing students, businesses, taxpayers, and the nation.

Key Points:

  • Call for Reform: ITECA criticises the current government’s preference for public institutions like TAFE colleges and universities, which they believe creates significant barriers to accessing quality tertiary education. They argue that this approach disproportionately affects students who choose independent Registered Training Organisations (RTOs) or higher education institutions, leaving them without sufficient government support.
  • Student-Centric Focus: The manifesto emphasises the need for reforms that prioritise students’ needs and choices, advocating for a system that allows students to select the provider—whether independent or public—that best aligns with their personal and professional goals.
  • Equity and Access: ITECA’s blueprint calls for eliminating discrimination against students who choose independent RTOs or higher education providers. The organisation believes that government policies should ensure a fair and equitable playing field for all tertiary education providers, supporting students’ informed decisions.
  • Advocacy and Vision: ITECA’s approach is driven by its members, who are committed to advocating for a tertiary education system that better supports students and creates a more balanced and fair educational landscape.

ITECA’s election manifesto is part of their broader vision for a student-focused tertiary education system in Australia.

For more details on the manifesto and ITECA’s policy recommendations, you can visit their website here.

 

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