Ms Catherine King (Ballarat, Australian Labor Party, Minister for Infrastructure, Transport, Regional Development and Local Government) Share this | Link to this | Hansard source

I move:

That this bill now be read a second time.

Introduction

Aviation is a national connecter. It binds our cities to our regions, our exports to the world, and our families to one another. Because of our vast continent and the distances that we travel, Australians rely on aviation perhaps more than many other people around the globe.

That is why it is so critical that the aviation sector builds and maintains the trust of Australian travellers.

Until now, consumers have relied on airlines handling escalated complaints themselves through voluntary industry arrangements.

This has not worked and consumers have often been left disappointed with the outcomes.

While airline performance has generally improved since the COVID-19 pandemic, there is still a need to offer greater protection for Australian travellers, including fair and appropriate treatment by airlines and airports when things go wrong.

Events i n t he Middle East

The events over the last month have also shown how times of global crisis can impact us domestically.

The conflict in the Middle East has led to flight and fuel disruptions, and broader uncertainty for travellers here and abroad.

We have seen passengers who are unsure of what to do next, and what recourse is available to them if their flights are cancelled or delayed.

Our airlines have been working under really difficult circumstances and the government is incredibly grateful for the work that they have done to ensure Australians in the Middle East have been able to fly home safely.

But this current international crisis reminds us how important it is for Australian travellers to have increased protections when they fly and a clear understanding of what they are entitled to.

That is why the Australian government is bringing forward the Aviation Consumer Protection Bill package today, delivering on our commitment to hold the aviation industry accountable for delivering better outcomes for consumers.

This bill, the Aviation Consumer Protection Bill 2026, which is being introduced together with the Aviation Consumer Protection Levy Bill, the Aviation Consumer Protection Levy (Collection) Bill, and the Aviation Consumer Protection (Consequential Amendments and Transitional Provisions) Bill—which I'll move shortly—represent the most significant reform any government has ever introduced for aviation consumer protection in this country.

Reforms have been developed in close consultation with the public, with industry, and with experts to ensure that we are delivering meaningful protections for passengers, while maintaining a competitive and sustainable aviation sector.

While the levy bills enable the government to recover costs of operating the regulatory function through industry levies, we are mindful of the current burden on industry due to the conflict in the Middle East and will make appropriate decisions in that regard.

The white paper

In 2024, the government released the Aviation white paper: towards 2050, a series of 56 policies setting the direction for the aviation industry to give passengers a better deal and enhance competition, while ensuring the industry maintains Australia's strong safety record—a record of which we are very proud.

The white paper acknowledged that the industry-led Airline Customer Advocate (ACA) had not delivered an effective complaint resolution service, and that it was now necessary for the government to establish a more effective body.

This assessment has been supported by feedback from consumers, consumer advocacy groups and consumer and fair-trading regulators, who have told us that in recent years the domestic airline industry has demonstrated poor customer service, decreasing service quality, and that the ACA is ineffective at resolving disputes.

An independent review into airline and airport complaint handling processes advised the government that airlines and airports have work to do to lift their complaint handling standards, and that existing consumer pathways to escalate complaints are unclear, confusing and vary in their effectiveness.

Data from the government's Bureau of Infrastructure and Transport Research Economics shows that issues with on-time performance are substantial.

In December last year, on average, over a quarter of domestic flights reported were delayed on arrival and were delayed on departure.

While airline performance, including on-time performance, has improved since the COVID-19 pandemic, there is still a broader need to better protect aviation consumers.

Research from the Behavioural Economics Team of the Australian Government shows that more than one in two Australian adults travelled by air between August 2024 and August 2025, and that one in two of those travellers experienced a flight disruption.

Only a third of those travellers were satisfied with how these disruptions were handled. Australians with disabilities, medical conditions or injuries—who accounted for one in four air passengers—report even lower levels of satisfaction.

A more coherent aviation consumer protection framework will be capable of both assisting consumers to resolve disputes and encourage improved service standards across the aviation sector.

The bill

This bill establishes the Aviation Consumer Protection framework which will comprise:

An independent company, limited by guarantee, will operate the Aviation Consumer Ombudsperson scheme.

This company, the ACO company, will be governed by a board of directors with equal representation from industry, consumers and an independent chair.

Regulated entities—airlines and airports—will be required to become members of the company.

One of the central functions of the ACO will be operating an aviation specific external dispute resolution service for consumer complaints about airlines and airports.

If an airline or airport operator has acted inconsistently with the charter and a consumer is not satisfied with the handling of their complaint, they will be able to seek assistance from the ACO.

The ACO will have several ways to help resolve the complaint such as through an investigation, compelling the provision of information, recommending a particular course of action, and/or facilitating a dispute resolution process.

The ombudsperson will be empowered to make a determination to require an airline or airport operator to resolve a consumer complaint in a particular way.

The regulator will be established in the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

It will enforce the charter and be empowered to investigate systemic issues facing consumers in the aviation sector.

The regulator will also carry out enforcement activities related to the charter and the framework, including pursuing enforcement of Aviation Consumer Ombudsperson determinations on behalf of the ombudsperson through judicial processes if necessary.

The charter will create obligations for airlines and airports towards consumers in the event of a flight disruption, delay or cancellation.

The charter will also contain minimum standards in relation to booking information and assistance, communicating with consumers and complaint handling.

To support greater public transparency and accountability, the Aviation Consumer Protection Bill will also facilitate the reporting and publication of reasons for flight delays, cancellations and disruptions to the department and consumers respectively.

This will assist the regulator and the ombudsperson to determine whether or not a disruption, delay or cancellation was within or outside of the relevant entity's control.

Both the ombudsperson and the regulator will also have an advocacy role, ensuring consumer concerns are heard and actioned by conducting inquiries, advising government and promoting best practice.

The ombudsperson and the regulator will provide consumer-focused education and best-practice advice to consumers, the aviation industry, and the government on complaints handling.

The regulator will lead advocacy in relation to any systemic consumer-facing issues identified in the sector, regulatory improvement that is required, and public reporting.

The Aircraft Noise Ombudsperson, responsible for independent reviews of Airservices Australia's and Defence's management of aircraft noise-related activities, will also transition into the department.

They will continue their current work, independent of Airservices Australia and Defence. This is about ensuring the public has confidence in the aircraft noise ombudsperson's findings and its recommendations.

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.

I commend the bill to the House.

Debate adjourned.