Vince Connelly (Stirling, Liberal Party) Share this | Hansard source

Firstly, I'll frame the context for the Aviation Legislation Amendment (Liability and Insurance) Bill 2020. The Australian government is examining options to further support and strengthen the aviation industry to manage the current impacts of the COVID-19 downturn, support the recovery and look at pathways for longer-term recovery. The Australian government has clear long-term objectives for aviation—namely, a competitive and efficient aviation sector; a safe, secure and environmentally sustainable aviation sector, ensuring minimum access to essential aviation services. Delivering against these objectives during this period of upheaval and uncertainty requires leadership and planning. Informed by the submission on the issues paper and ongoing consultation with industry, the Australian government will release its five-year plan for aviation in 2021. The plan will set out a program of longer term reforms to help deliver against these objectives and assist the sector to return to strength and stability. The government's support helps not only Australia's airlines but the broader aviation industry, regional Australia and other industries, such as tourism and time-sensitive trade, which depend heavily on aviation.

The Liberal-National government has introduced legislation to provide greater protection for the rights and entitlements of the Australian flying public, as well as greater certainty for air carriers. The aviation legislation amendment bill is to amend the Civil Aviation (Carriers' Liability) Act 1959 to increase the cap on carriers' liability for the death or bodily injury of passengers on domestic flights from $725,000 to $995,000, as well as the corresponding level of insurance required to reflect the rate of inflation, and to increase liability for the destruction or loss of registered baggage from $900 to $3,000 and non-registered baggage from $90 to $300. The bill will enable the quantum of mandatory insurance to be increased by regulation. The bill will create a mechanism to broaden the capture of risks that carriers are required to insure so as to potentially include war risks. Currently, similar to international air carriage, a domestic carrier is liable for damages sustained by reason of the death of a passenger, or bodily injury suffered by a passenger, resulting from an accident. Finally, this bill will make technical amendments clarifying that carriers, servants and agents of the carrier share the same scope of liability.

The Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development , Michael McCormack, said: 'The cap in compensation and minimum insurance coverage has not increased since 2013, so these liability limits and associated insurance requirements need to be increased to ensure they keep up with inflation and continue to meet community expectations.' Thanks to this legislation, the Australian government will in future more easily be able to increase both the liability caps and minimum insurance amounts through regulation. The proposed amendments include the ability to ensure liability caps and required insurance amounts can be increased more efficiently when it is appropriate to do so. This could potentially be achieved through automatic indexation, meaning we can respond more dynamically to the needs of both the community and industry.

While air accidents rarely happen, it's important to ensure that Australians are covered in the event of an emergency. Overall, the amendments in this bill will further protect the rights and entitlements of the Australian public and the carriers involved in or affected by air accidents. The government intends to consult further on additional changes to the Civil Aviation (Carriers' Liability) Act 1959 in some of the aforementioned areas and other issues in the next financial year. The Australian government is committed to maintaining both the integrity and the great reputation of Australia's airlines. This is another example of the Australian government continuing to work closely with the aviation industry as it faces so many ongoing challenges associated with the COVID-19 pandemic. With those comments, I commend the bill to the House.

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