The Australian Financial Complaints Authority has commenced consultation on a new funding structure, shifting the balance of its industry funding model to a true user-pays basis so that members who are not subject to complaints will pay less.

AFCA said that under the new plan 20 per cent of its members would pay lower fees and 10 per cent would pay more. The rest would be left in much the same position they are in now.

Among banking industry members, AFCA estimated that 33 per cent would see fees fall, 53 per cent would see no change and 14 per cent would see an increase due to complaints volumes.

Members expected to pay more are those that make most use of AFCA’s services and are typically large financial institutions.

AFCA chief executive David Locke said the new model was designed to reward good behaviour and remove cross-subsidies.

The proposed charges include a registration fee (which will increase) and the introduction of five free complaints per year. Most AFCA members have very low or no complaint numbers.

The bulk of fees would be recovered from the 2.5 per cent of members that represent 66 per cent of all complaints received by AFCA.

The new charges also remove a separate superannuation levy and put super funds under the same fee structure as other members.

AFCA held the first of five member webinars yesterday to outline the plan and get feedback.