The Australian Financial Complaints Authority (AFCA) has begun accepting membership applications for organisations that will participate in the external dispute resolution (EDR) scheme established under Australia’s Scams Prevention Framework (SPF), as it prepares to administer a new statutory dispute resolution regime.
Applications opened on July 1 for organisations required to join the SPF EDR scheme before obligations commence under the framework. AFCA was authorised by the federal government in June to operate the scheme, giving it responsibility for determining whether participating organisations have met their obligations under the SPF.
The framework introduces statutory obligations requiring designated sectors to take reasonable steps to prevent, detect, disrupt, respond to, and report scams. It will be implemented in stages, with banks covered first, followed by telecommunications providers and certain digital platform operators. AFCA said organisations covered by the Scams Prevention Framework should apply for membership as soon as possible to ensure they are ready to meet their obligations ahead of the framework’s commencement for their sector.
Under the SPF EDR scheme, eligible consumers and small businesses will be able to escalate unresolved complaints to AFCA after first attempting to resolve the matter with the relevant organisation. AFCA said it will not determine whether a scam has occurred. Instead, it will assess whether a participating organisation complied with its obligations under the Scams Prevention Framework and any applicable sector rules.
Where AFCA finds that a member has not met those obligations, it may direct the organisation to take specified action or award compensation within the limits set out under the framework. The authority said the scheme extends its dispute resolution functions beyond its existing financial services jurisdiction, embedding an independent compliance-based complaints pathway within the new regulatory framework.
AFCA said organisations already holding membership for its existing dispute resolution services must apply separately for the SPF EDR scheme, because SPF obligations sit outside existing AFCA membership arrangements. Applications require organisations to provide their Australian Business Number, Australian Company Number where applicable, contact details, expected commencement date of their SPF obligations, and details of a nominated SPF EDR representative responsible for complaint handling and operational matters. AFCA has also published guidance materials and frequently asked questions covering eligibility, fees, application requirements, and complaint handling processes.
Designated entities under the Scams Prevention Framework are required to be AFCA members from Sept. 1, 2026, following the scheme’s authorisation and onboarding period. Membership applications opened on July 1, 2026, with organisations encouraged to apply early to support onboarding ahead of this requirement.
The framework applies to designated sectors identified under the legislation, with banks forming the first group required to comply, followed by telecommunications providers and designated digital platform operators under a staged implementation approach. AFCA will be able to consider scam-related complaints under the SPF from March 31, 2027. The SPF currently does not include insurers within its designated sectors.
The development reflects a broader shift toward embedding external dispute resolution mechanisms within statutory regulatory frameworks that also impose compliance obligations on regulated entities. While insurers are not currently within the scope of the Scams Prevention Framework, AFCA already plays a central role in resolving insurance-related disputes under its existing jurisdiction. Its expanded statutory responsibilities under the SPF illustrate how complaint-handling functions are increasingly being aligned with regulatory compliance regimes across different sectors.
The framework also reflects a wider government approach to scam prevention that places obligations on multiple industries to reduce scam risks and improve coordination in prevention, detection, and response, with AFCA acting as the independent dispute resolution body for related complaints. With membership applications now open, organisations designated under the SPF are expected to complete onboarding ahead of the commencement of their obligations under the staged implementation of the framework.
