No automatic delay compensation
Critics and commentators warned that passengers would gain a better complaints process but still would not be entitled to set compensation for delays, unlike stronger overseas-style schemes.
This bill is currently before Parliament.
Transport & communications
Airlines and airport operators will have to meet minimum service standardsThe baseline obligations airlines and airports would have to meet when providing services to passengers. for bookings, delays, cancellations, baggage, accessibility help and complaint handling.
The 2024 Aviation White PaperA government policy paper that reviewed the aviation sector and found the existing airline complaints system was not effective or trusted. found the industry-led Airline Customer AdvocateThe earlier industry-run airline complaints body that the Aviation White Paper said had not delivered a trusted complaint system. had not delivered an effective or trusted complaints system, amid sustained post-COVID complaint increases and poor on-time performance. The bill creates minimum service standardsThe baseline obligations airlines and airports would have to meet when providing services to passengers., an independent Aviation Consumer Ombuds SchemeThe new independent complaints scheme where travellers can take unresolved problems with covered airlines and airports for free., departmental enforcement, and independent review of aircraft noise complaint handling.
Australia already had general consumer law, carrier-liability rules, airport monitoring and the industry-led Airline Customer AdvocateThe earlier industry-run airline complaints body that the Aviation White Paper said had not delivered a trusted complaint system., but the 2024 Aviation White PaperA government policy paper that reviewed the aviation sector and found the existing airline complaints system was not effective or trusted. found those arrangements did not give travellers an effective or trusted way to resolve airline complaints. After post-COVID complaint levels stayed high and 2025 on-time performance remained below long-term averages, the bill responded with minimum service standardsThe baseline obligations airlines and airports would have to meet when providing services to passengers., a free independent ombudsThe person or office running the independent scheme that handles individual airline and airport complaints and can make determinations. schemeThe new independent complaints scheme where travellers can take unresolved problems with covered airlines and airports for free., departmental enforcement and independent oversight of aircraft-noise complaint handling.
The main criticism is that the reforms may improve complaint handling without giving passengers an automatic right to compensation when flights are delayed or cancelled. That concern was raised in public reporting, by earlier Coalition proposals for “pay on delay” rules, and by ACCCThe national competition and consumer regulator, which argued for stronger airline complaint and compensation arrangements. comments favouring fines and passenger compensation, rather than as recorded parliamentary opposition to this bill.
The government introduced this bill. Supportive speeches so far have come from Labor.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
70 days
Updated 10 June 2026.
Meaning
Airlines and airport operators will have to meet minimum service standardsThe baseline obligations airlines and airports would have to meet when providing services to passengers. for bookings, delays, cancellations, baggage, accessibility help and complaint handling.
Air travellers will be able to take unresolved airline and airport complaints to an independent Aviation Consumer Ombuds SchemeThe new independent complaints scheme where travellers can take unresolved problems with covered airlines and airports for free., with determinations binding on airlines and airports but not consumers.
Airlines and airport operators covered by the law must join the Aviation Consumer Ombuds SchemeThe new independent complaints scheme where travellers can take unresolved problems with covered airlines and airports for free., and consumers will not pay to make or pursue complaints.
The Aviation Consumer Protection AuthorityA new function inside the federal infrastructure department that monitors industry conduct, checks compliance and can take enforcement action. in the federal infrastructure department will monitor patterns of poor conduct and can take enforcement action against airlines and airports.
The Aircraft Noise OmbudspersonA new independent review role for complaints about how Airservices Australia and Defence handle aircraft noise issues. will independently review how Airservices AustraliaThe government-owned body that manages civilian air traffic services and is one of the bodies whose aircraft noise complaint handling can be reviewed. and the Department of DefenceThe federal department responsible for military aviation, whose handling of aircraft noise complaints can be reviewed under the bill. handle aircraft noise complaints, with existing unresolved complaints able to continue.
Subclause 20(4) provides non-exhaustive examples of matters that may be covered by the Charter. These include the provision of information and assistance to consumers, collection of information from customers, consumer entitlements and obligations on regulated entities relating to disruption, cancellation or delay of an airline service or misplaced, lost or damaged baggage, accessibility and the provision of reasonable adjustments to prevent discrimination against persons with disability, and complaint handling and dispute resolution. For example, the Charter may specify the types of information or notifications that regulated entities must provide to consumers when booking a flight, including information about consumer entitlements, accessibility arrangements, or procedures to be followed in the event of flight disruption.Aviation Consumer Protection explanatory memorandum
Subclause 24(4) sets out the operational requirements of the Scheme. These include requirements that only eligible complaints can be dealt with under the Scheme, that eligible complaints are dealt with by the operator except as otherwise provided by the Scheme, that the Scheme is accessible to persons dissatisfied with scheme members, that complaints are resolved in a manner that is fair, efficient, timely and independent, that appropriate expertise is available to deal with complaints, that reasonable steps are taken to ensure compliance by scheme members with determinations made by the ACO, and that determinations made by the ACO are binding on scheme members but not binding on complainants.Aviation Consumer Protection explanatory memorandum
Subclause 24(2) sets out the organisational requirements including that membership of the Scheme is open to every regulated entity that is required under the Bill to join the Scheme, that the operations of the Scheme are financed through contributions made by scheme members, that the Scheme has an independent assessor, and that complainants are not required to pay any fee or charge to the ACO or any other entity in relation to making or pursuing a complaint.Aviation Consumer Protection explanatory memorandum
The ACPA will also undertake systemic monitoring, compliance and enforcement functions under the framework, including identifying patterns of non-compliance and taking regulatory action where appropriate. The ACO does not undertake systemic regulatory investigations but may provide information or insights arising from complaint handling to support the ACPA’s or other relevant regulators’ functions.Aviation Consumer Protection explanatory memorandum
Subitem 2(1) provides that the item applies to a complaint if the complaint was made to the non-statutory ombudsperson before commencement, the complaint is about an aircraft noise management agency’s management of aircraft noise in Australian territory and at the time of commencement one of the following apply: the complaint has not been resolved, the complaint has not been withdrawn, or the non‑statutory ombudsperson has not made a decision to not deal with, or not continue to deal with, the complaint.Aviation Consumer Protection explanatory memorandum
Context
Australia already had general consumer law, carrier-liability rules, airport monitoring and the industry-led Airline Customer AdvocateThe earlier industry-run airline complaints body that the Aviation White Paper said had not delivered a trusted complaint system., but the 2024 Aviation White PaperA government policy paper that reviewed the aviation sector and found the existing airline complaints system was not effective or trusted. found those arrangements did not give travellers an effective or trusted way to resolve airline complaints. After post-COVID complaint levels stayed high and 2025 on-time performance remained below long-term averages, the bill responded with minimum service standardsThe baseline obligations airlines and airports would have to meet when providing services to passengers., a free independent ombudsThe person or office running the independent scheme that handles individual airline and airport complaints and can make determinations. schemeThe new independent complaints scheme where travellers can take unresolved problems with covered airlines and airports for free., departmental enforcement and independent oversight of aircraft-noise complaint handling.
ACCCThe national competition and consumer regulator, which argued for stronger airline complaint and compensation arrangements. calls for an independent airline complaints body
The Australian Financial Review reported that ACCCThe national competition and consumer regulator, which argued for stronger airline complaint and compensation arrangements. chair Gina Cass-Gottlieb urged the government to create an independent agency for airline consumer complaints and to consider fines and compensation for cancellations and delays.
Australian Financial Review ↗Aviation White PaperA government policy paper that reviewed the aviation sector and found the existing airline complaints system was not effective or trusted. finds the Airline Customer AdvocateThe earlier industry-run airline complaints body that the Aviation White Paper said had not delivered a trusted complaint system. is not trusted
The explanatory memorandum says the 2024 Aviation White PaperA government policy paper that reviewed the aviation sector and found the existing airline complaints system was not effective or trusted. concluded the industry-led Airline Customer AdvocateThe earlier industry-run airline complaints body that the Aviation White Paper said had not delivered a trusted complaint system. had not delivered an effective or trusted complaint-resolution system and that government intervention was warranted.
Aviation Consumer Protection explanatory memorandum ↗Qantas agrees to $120 million settlement over cancelled-flight sales
The Australian Financial Review reported that Qantas admitted misleading travellers and agreed to penalties and compensation after the ACCCThe national competition and consumer regulator, which argued for stronger airline complaint and compensation arrangements. alleged it sold tickets for flights that had already been cancelled.
Australian Financial Review ↗Government funds new aviation consumer protections
The explanatory memorandum says the government committed $3.6 million across 2024-25 and 2025-26 to establish the new aviation consumer protection arrangements, then referred to as the Aviation Industry Ombuds SchemeThe new independent complaints scheme where travellers can take unresolved problems with covered airlines and airports for free..
Aviation Consumer Protection explanatory memorandum ↗Government seeks submissions on the aviation ombudsThe person or office running the independent scheme that handles individual airline and airport complaints and can make determinations. model
The Australian Financial Review reported that the transport minister sought public submissions on an independent oversight body, with the proposed ombudsman not including automatic compensation for delays like some overseas schemes.
Australian Financial Review ↗Airline punctuality remains below long-term averages
The explanatory memorandum cites BITREThe federal research agency whose airline punctuality and cancellation data is cited to show performance remained below long-term averages. data for the year ending 31 December 2025 showing domestic arrivals at 76.9 per cent, departures at 77.7 per cent and cancellations at 2.5 per cent, worse than the long-term averages cited there.
Aviation Consumer Protection explanatory memorandum ↗Aviation Consumer Protection Bill is introduced
The bill was introduced to establish minimum service standardsThe baseline obligations airlines and airports would have to meet when providing services to passengers., a free independent Aviation Consumer Ombuds SchemeThe new independent complaints scheme where travellers can take unresolved problems with covered airlines and airports for free., departmental monitoring and enforcement, and independent review of aircraft-noise complaint handling.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Referred to Committee (01/04/2026): Senate Rural and Regional Affairs and Transport Legislation Committee; Report due 19/06/2026
Report due 19 Jun 2026
APH bill page notesKey criticism
The main criticism is that the reforms may improve complaint handling without giving passengers an automatic right to compensation when flights are delayed or cancelled. That concern was raised in public reporting, by earlier Coalition proposals for “pay on delay” rules, and by ACCCThe national competition and consumer regulator, which argued for stronger airline complaint and compensation arrangements. comments favouring fines and passenger compensation, rather than as recorded parliamentary opposition to this bill.
No party represented in the available debate opposed the bill; criticism focused on whether it goes far enough.
No automatic delay compensation
Critics and commentators warned that passengers would gain a better complaints process but still would not be entitled to set compensation for delays, unlike stronger overseas-style schemes.
Calls for fines and stronger remedies
The ACCCThe national competition and consumer regulator, which argued for stronger airline complaint and compensation arrangements. argued airlines should face fines for cancelling flights and should be required to compensate passengers, suggesting complaint handling alone may not sufficiently deter poor service.
Earlier push for pay-on-delay rules
Coalition senators previously proposed laws to require rules on carriers’ obligations to customers, as a possible step toward compensation for problems such as flight delays.
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
King strongly supports the bill, saying it delivers major aviation consumer protection reforms by creating an independent ombudspersonThe person or office running the independent scheme that handles individual airline and airport complaints and can make determinations., a regulator and enforceable standardsThe baseline obligations airlines and airports would have to meet when providing services to passengers. to improve complaint handling and hold airlines and airports accountable.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This bill will improve outcomes for consumers and ensure the aviation sector is accountable for the services they offer and is focussed on aviation consumers.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate Rural and Regional Affairs and Transport Legislation Committee
Report due 19 Jun 2026
Referred to Committee (1 Apr 2026): Senate Rural and Regional Affairs and Transport Legislation Committee; Report due 19 June 2026
APH bill page notes