Regional services and costs
The levyA compulsory charge used to fund a service. could impose unfair costs on regional operators, potentially increasing fares or threatening services unless regional aviation receives specific protection.
This bill is currently before Parliament.
Budget, tax & economy
Airlines and airports would pay a yearly levyA compulsory charge used to fund a service. for financial years beginning on or after 1 July 2026.
The government said the levyA compulsory charge used to fund a service. was needed to fund the Aviation Consumer Protection Authority, the body intended to enforce minimum service standards across airlines and airports. Government research found that one in two air travellers experienced a disruption between August 2024 and August 2025. Only one-third were satisfied with how it was handled. The government said the industry should cover the authority's expected costs, with each business paying a fair share.
Australia’s existing aviation consumer protections left passengers dissatisfied when flights were delayed, cancelled or disrupted, while airlines and airports largely policed their own obligations. After the 2024 Aviation White Paper committed to a charter and external dispute resolution, the Government developed a new Authority and introduced this levyA compulsory charge used to fund a service. bill on 1 April 2026 so regulated airlines and airports would fund its administration, enforcement and investigations; the House agreed to the bill on 29 June as part of the wider reform package.
Michael McCormack (National Party) argued that unknown costs could hurt small regional airlines and airports already operating on thin margins. He said the promised exemption for airports with fewer than one million passengers a year was not guaranteed in the bill. Sam Birrell (National Party) also argued that key costs and calculation details were being left to later regulationsDetailed rules made under an Act..
Hon Catherine King MP 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
128 days
Updated 07 Aug 2026.
Meaning
Airlines and airports would pay a yearly levyA compulsory charge used to fund a service. for financial years beginning on or after 1 July 2026.
Airlines and airports would have their levyA compulsory charge used to fund a service. amounts set later through regulationsDetailed rules made under an Act.. The bill itself sets no dollar amount.
Airlines and airports together would cover the expected cost of running the new aviation consumer protection system.
Individual airlines and airports, or whole groups of them, could be exempted by the minister.
Different groups of airlines and airports could pay different amounts. RegulationsDetailed rules made under an Act. could also set a nil or part-year amount.
Airlines and airports would pay what the minister considers a fair share of the total levyA compulsory charge used to fund a service..
Airlines and airports could not be charged in a way that favours one state over another.
9 Imposition of levy Annual general levy payable in accordance with this Act is imposed. 10 Annual general levy (1) The amount of annual general levy payable by a regulated entity for a financial year beginning on or after 1 July 2026 is the amount worked out in accordance with the regulations.Aviation Consumer Protection Levy introduced text
10 Annual general levy (1) The amount of annual general levy payable by a regulated entity for a financial year beginning on or after 1 July 2026 is the amount worked out in accordance with the regulations. (2) The Minister may, by legislative instrument, determine that: (a) a specified regulated entity is not liable to pay annual general levy for a financial year; or (b) a specified class of regulated entities is not liable to pay annual general levy for a financial year. (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must consider theAviation Consumer Protection Levy introduced text
11 Meaning of administration costs (1) The administration costs for a financial year are the amount determined by the Secretary for the financial year. (2) For the purposes of subsection (1), the Secretary must, by legislative instrument, make a determination for each financial year starting on or after 1 July 2026 specifying an amount equal to the costs that are expected to be incurred, in the financial year, in administering: (a) the Aviation Consumer Protection Act 2026; and (b) the Aviation Consumer Protection Levy (Collection) Act 2026. (3) The amount determined under subsection (2)Aviation Consumer Protection Levy introduced text
(2) The Minister may, by legislative instrument, determine that: (a) a specified regulated entity is not liable to pay annual general levy for a financial year; or (b) a specified class of regulated entities is not liable to pay annual general levy for a financial year. (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must consider the following objectives: (a) that the total amount of annual general levy payable by all regulated entities for a financial year reflect the amount of the administration costs for the financial year; (b) that tAviation Consumer Protection Levy introduced text
(6) Without limiting subsection (1), the regulations may do one or more of the following: (a) specify an amount or a method for determining an amount; (b) specify different amounts or methods for different classes of regulated entities for a financial year; (c) specify a nil amount or a method resulting in a nil amount; (d) specify a method that refers to acts done or circumstances existing before either the commencement of the regulations or the commencement of this Act, or both; (e) specify that an amount may be worked out on a pro rata basis set out in the regulations in prescribed cirAviation Consumer Protection Levy introduced text
(3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must consider the following objectives: (a) that the total amount of annual general levy payable by all regulated entities for a financial year reflect the amount of the administration costs for the financial year; (b) that the amount of annual general levy payable by a regulated entity for a financial year is a fair proportion of the total amount of annual general levy payable by all regulated entities for the financial year. Note: For the amount of the administration costs for the financialAviation Consumer Protection Levy introduced text
(7) The power conferred under subsection (1) must not be exercised in such a way as to: (a) discriminate between States or parts of States, within the meaning of paragraph 51(ii) of the Constitution; or (b) give preference to one State or any part thereof, within the meaning of section 99 of the Constitution.Aviation Consumer Protection Levy introduced text
Context
Australia’s existing aviation consumer protections left passengers dissatisfied when flights were delayed, cancelled or disrupted, while airlines and airports largely policed their own obligations. After the 2024 Aviation White Paper committed to a charter and external dispute resolution, the Government developed a new Authority and introduced this levyA compulsory charge used to fund a service. bill on 1 April 2026 so regulated airlines and airports would fund its administration, enforcement and investigations; the House agreed to the bill on 29 June as part of the wider reform package.
2024 Aviation White Paper finds passengers dissatisfied
The Aviation White Paper found consumers were dissatisfied with how airlines and airports interpreted their obligations, supporting commitments to an aviation consumer charter and external dispute resolution.
Aviation Consumer Protection Levy explanatory memorandum ↗Government consults on a new aviation consumer framework
The Government began consultation on legislation for a new aviation consumer protection framework to give passengers a better flying experience.
Department of Infrastructure ↗Catherine King introduces the levyA compulsory charge used to fund a service. bill
Hon Catherine King MP introduced the Government bill in the House of Representatives as the levyA compulsory charge used to fund a service. component of a four-bill aviation consumer protection package.
Parliamentary timeline ↗House passes the levyA compulsory charge used to fund a service. bill
The House’s third-reading agreement completed the bill’s passage through the originating chamber alongside the wider aviation consumer protection package.
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 Commitee; Committee report (19/06/2026)
Report tabled 19 Jun 2026
APH bill page notesConsidered by scrutiny committee (06/05/2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 6 of 2026
Scrutiny Digest 6 of 2026
APH bill page notesThe bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
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
Key criticism
Michael McCormack (National Party) argued that unknown costs could hurt small regional airlines and airports already operating on thin margins. He said the promised exemption for airports with fewer than one million passengers a year was not guaranteed in the bill. Sam Birrell (National Party) also argued that key costs and calculation details were being left to later regulationsDetailed rules made under an Act..
The government said the levyA compulsory charge used to fund a service. would only recover the expected cost of running the consumer protection system. It also said the minister must consider whether each airline or airport is paying a fair share.
Regional services and costs
The levyA compulsory charge used to fund a service. could impose unfair costs on regional operators, potentially increasing fares or threatening services unless regional aviation receives specific protection.
Key details left open
The bill leaves the levyA compulsory charge used to fund a service. amount and other important implementation details to later regulationsDetailed rules made under an Act., making its practical costs difficult to assess in advance.
No automatic compensation
Critics argued that funding a new regulator would not itself guarantee passengers fixed, automatic compensation for airline-controlled delays and cancellations.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
King supports the bill as part of the government's plan to improve aviation consumer protections, with an equitable industry levyA compulsory charge used to fund a service. funding the regulator's administrative costs.
Read in Hansard ↗Birrell opposes the bill, arguing that it adds costs and bureaucracy without direct passenger compensation and could threaten regional aviation services.
Read in Hansard ↗Michael McCormack says the coalition will allow the bill to pass but will seek amendments to protect regional aviation and strengthen passenger remedies.
Read in Hansard ↗Ryan says the bill improves aviation consumer protection but is inadequate unless the government tables the passenger rights charter and adds fixed, automatic compensation for delays and cancellations within airlines' control.
Read in Hansard ↗All speeches by bloc
8 speakers · 7 support · 1 unclear
“This bill is not pretending every flight will run on time. It is not pretending every disruption can be avoided, and it is not pretending aviation can be simplified by legislation alone, but it does something important. It puts consumers back at the centre, it says trust has to be earned, it says accountability cannot be voluntary, it says passengers deserve better than confusion, delay and silence. This is practical Labor reform. It takes a system that was too unclear, too weak and too frustrating, and starts to build something stronger in its place—a system where standards are clear, complaints are heard fairly, industry is accountable and people are treated with dignity when plans fall apart. That is the kind of reform Australia expects from this parliament, and it is the kind of reform the Albanese Labor government is delivering. I am proud to support this bill, I am proud to support stronger protections for Australian travellers, and I commend this bill to the House.”Read the full speech in Hansard ↗
“I rise in support of the Aviation Consumer Protection Bill 2026 and the other bills itemised. These bills together represent the most significant reform to aviation consumer rights here in this country in more than a decade. For too long, Australian travellers have felt powerless when flights are being delayed, cancelled or disrupted. For too long, people have been left stranded at airports, unable to get clear information, unable to access assistance and unable to resolve complaints in a fair and timely way. For too long, this system has effectively relied on airlines policing themselves. But Australians deserve better, and the Albanese Labor government is delivering a modern aviation system that puts passengers back in the centre of this conversation—a system that is fairer, a system that is much more transparent and a system that improves accountability across the aviation industry and, more importantly, a system that recognises that air travel is not a luxury for many Australians. It's an essential part of everyday life.”Read the full speech in Hansard ↗
“The Australian Government intends the annual general levy to offset the cost of administering the aviation consumer protections contained in the ACP Bill, while ensuring the levy is applied equitably. The Minister will be required to consider whether the levy payable by the regulated entity is a fair proportion of the total annual funds raised via the levy.”Read the full speech in Hansard ↗
“The package also establishes the Aircraft Noise Ombudsperson as a function within the department, independent of Airservices Australia and the Department of Defence. Aircraft noise is a serious concern for affected communities. For people living under flight paths, aircraft noise can affect sleep, amenity and wellbeing. Communities need confidence that complaints are reviewed independently. The levy bills support the framework by allowing the imposition and collection of levies to recover the administrative costs associated with the Aviation Consumer Protection Authority. It is appropriate that the cost of this framework be borne by the industry that has generated the need for regulation provided those costs are kept reasonable and proportionate.”Read the full speech in Hansard ↗
“I look forward to going back to my community and telling them that the next time they travel after saving for that well-earned holiday or to care for a sick parent a disruption or a cancellation will mean compensation, not frustration. That's one less thing they'll need to worry about when weighing up their budget. This legislation will mean fewer Marias sitting at an airport gate frustrated, fewer families absorbing costs that should have been the airline's and fewer residents feeling like their concerns about aircraft noise have vanished into a bureaucratic void. It will mean Australia finally has an aviation consumer protection framework that reflects our modern, fair-minded country—one that stands with every passenger and brings real accountability to a crucial industry. I'm proud to be part of a government delivering it, because my community relies on the success of our aviation industry, and that industry relies on my community and on the many others who pass through it every day. I commend the bills to the House.”Read the full speech in Hansard ↗
“Third, the bills establish the Aviation Consumer Protection Authority. The authority will be a dedicated regulator within the department to enforce the charter and to take on the systemic problems in the sector, not just one complaint at a time. Where the ombudsperson helps the individual traveller, the regulator looks at the bigger patterns to make sure the industry is held to account if necessary. This framework is about meaningful protection for passengers while keeping aviation competitive, affordable and sustainable, including the regional routes that so many of our regional and remote communities depend on—in particular, my state of Queensland. There is a balance, and these bills achieve that balance.”Read the full speech in Hansard ↗
“The Aviation Consumer Protection Levy Bill forms a key part of a package of bills to hold the aviation industry accountable for delivering better outcomes for consumers and to deliver on our commitment to improve aviation consumer protection.”Read the full speech in Hansard ↗
“The original question was that this bill be now read a second time. To this the honourable member for Riverina moved as an amendment that all words after 'That' be omitted with a view to substituting other words. The honourable member for Kooyong has now moved as an amendment to that amendment that all words after 'notes that' be omitted with a view to substituting other words. The question now is that the amendment moved by the honourable member for Kooyong to the amendment moved by the honourable member for Riverina be agreed to.”Read the full speech in Hansard ↗
2 speakers · 1 support · 1 oppose
“But supporting stronger protections is not the same as supporting this piece of legislation, because these bills deliver more bureaucracy than accountability, more costs than compensation and more processes than outcomes. Australians do not want another complaints body to write to after their holiday is already ruined; they want fewer cancellations, fewer delays and better communication. In the instances where we can't get the airlines to perform better in relation to those things, they need real compensation when things go wrong. But instead Labor has delivered a framework built around complaints and paperwork after the damage is already done, and the damage has been considerable.”Read the full speech in Hansard ↗
“The coalition strongly supports the objective of improving consumer protections for travellers. However, in our view, this legislation falls far short of community expectations. It creates new bureaucracies but fails to address many of the concerns passengers have had. It does not provide direct compensation. It leaves too much to regulations. It imposes unquantified costs on regional aviation, and it does not ensure consumers retain access to their own money through unused flight credits. The coalition will propose amendments in the Senate to protect regional aviation, enhance consumer protection, strengthen accountability and deliver fairer outcomes for Australian travellers.”Read the full speech in Hansard ↗
2 speakers · 1 mixed · 1 unclear
“(a) table a draft Charter with mandatory minimum content before the bill proceeds to a third reading; and”Read the full speech in Hansard ↗
“However, there are credible questions surrounding this bill and whether it will achieve its aim. I hope the government will work in good faith across the parliament to ensure that the benefits from these bills will flow to all consumers, including those flying in and out of regional airports. Thank you.”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.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · 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.
Senate · 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 Commitee
Report tabled 19 Jun 2026
Referred to Committee (1 Apr 2026): Senate Rural and Regional Affairs and Transport Legislation Commitee; Committee report (19 June 2026)
APH bill page notesSenate Standing Committee for the Scrutiny of Bills
Scrutiny Digest 6 of 2026
Considered by scrutiny committee (6 May 2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 6 of 2026
APH bill page notes