Legislation to establish a new one-stop dispute resolution body has passed the Senate.

The Australian Financial Complaints Authority (AFCA) will start operating in the second half of next year, replacing the Financial Ombudsman Service, Credit and Investments Ombudsman and Superannuation Complaints Tribunal.

“AFCA is a landmark reform that will overhaul how financial disputes are dealt with in Australia,” Revenue and Financial Services Minister Kelly O’Dwyer said.

“It will operate under significantly higher monetary limits and compensation caps. This will provide considerably greater access to redress for consumers and small businesses.”

The legislation now moves to the House of Representatives for final passage.