Travel Insurance at Booking Protected in Australia Until 2031

Australian travellers and the travel businesses that help them plan holidays have gained greater certainty after the Federal Government extended an important travel insurance exemption until 5 October 2031.

The decision means eligible travel businesses can continue offering travel insurance when customers book their travel, rather than being required to delay the insurance sale under the Deferred Sales Model. The exemption, originally secured in 2021, had been due to expire on 5 October 2026. Regulations extending it for another five years were registered on 16 September 2026.

Travel Insurance Remains Available at the Time of Booking

The Australian Travel Industry Association (ATIA) has welcomed the extension following a sustained advocacy campaign.

ATIA has consistently argued that the time of booking is an important point for discussing travel insurance because travellers know their destination, itinerary and planned activities. The association also highlighted the risks of travellers delaying insurance after making potentially significant and non-refundable travel commitments.

For travellers, this can be particularly relevant when planning cruises, snow holidays, adventure travel or complex international itineraries where the activities and destinations can influence the type of insurance cover required.

Five More Years of Certainty for Travellers

The extension provides five additional years of certainty for travel agents, tour operators and other eligible travel businesses.

ATIA said the existing arrangement also operates alongside consumer protections, including a 14-day cooling-off period and Design and Distribution Obligations applying to insurance products.

ATIA Chief Executive Officer Dean Long said the decision provides important certainty for the industry's small and medium-sized businesses and maintains the ability to discuss travel insurance when customers commit to a trip.

The extension follows ATIA's February 2026 submission to Treasury calling for the exemption to continue. Treasury's consultation material had proposed extending the relevant class exemptions to 5 October 2031.

Why Travel Insurance Matters When Planning a Holiday

Travel insurance can protect travellers against a range of unexpected costs, depending on the policy purchased and its terms and conditions.

Medical treatment overseas, trip cancellation, travel disruption, baggage problems and other unforeseen events can potentially create substantial expenses. Buying insurance soon after booking can also be important because some policies provide cover for certain cancellation risks that arise before departure.

Travellers should always read the Product Disclosure Statement, understand exclusions and conditions, and check that the policy is suitable for their destination and planned activities.

The Government's extension does not remove the need for travellers to compare policies carefully. Instead, it maintains the ability for eligible travel businesses to discuss and arrange travel insurance at the point when a holiday or international trip is booked.

A Longer-Term Outlook for Australian Travel

The extension to 2031 provides a more stable regulatory environment for Australian travel businesses while keeping travel insurance discussions connected to the booking process.

For travellers planning their next holiday, the message is straightforward: consider travel insurance early, understand what is covered, and make insurance part of the travel planning process rather than leaving it until the last minute.

Australian Travel Industry Association (ATIA)
Website: www.atia.travel
Phone: +61 2 9287 9900
Address: Suite 3, Level 31, 31 Market Street, Sydney NSW 2000, Australia

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