Australia considers a significant overhaul of airline passenger compensation rules
September 8, 2025
The Australian government is taking significant steps to bolster the rights of airline passengers. Transport Minister Catherine King has announced a four-week public consultation beginning Monday on a new Aviation Consumer Protection Scheme.
Standardising national protections for air passengers
This initiative seeks to standardise national protections for passengers experiencing flight delays, cancellations, or baggage issues. The reforms aim to clarify entitlements and ensure consistency across airlines and airports.
Australian consumer advocacy group CHOICE has raised concerns over the lack of clarity and enforceability in Labour’s earlier draft charter—especially regarding who enforces the rules and when compensation is owed.
Last year, the Australian government promised to establish a Charter of Rights and an Aviation Industry Ombuds Scheme to ensure airlines paid cash compensation to passengers affected by flight delays. It would have set guidelines for airline customer treatment. However, as Australian Lawyers Alliance spokeswoman Victoria Roy told News.com.au the 2024 plan fell short of expectations.
“The Aviation White Paper sets the plan to achieve the government’s vision for aviation until 2050,” Roy said. “By failing to introduce a simple flight delay compensation scheme, the government has committed to keep Australian passenger rights behind the EU, UK, Canada, Malaysia, Brazil, India, Turkey, and countless other jurisdictions for the next 25 years.”
Aligning Australian airline passenger rights with the EU model
The new protection model aligns with frameworks in the EU, where passengers are guaranteed compensation—up to €600—for delays exceeding three hours, except in extraordinary circumstances. It also ensures basic care like meals and overnight accommodation when needed.
“We’ve heard the frustration Australian aviation passengers feel when dealing with airlines and airports,” King states in the call for public comments. “When things go wrong, it can be hard to know what passengers can expect from airlines and airports, because the approach is different at every airport and with each airline.”
King stated the new provisions include “requirements when you book a flight and check in, how you should be communicated with, and minimum levels of assistance when a flight is disrupted, and how airlines and airports should manage complaints.”
The government intends to pass the legislation by the end of 2025, with implementation starting next year.
Australia moves forward on passenger rights as the US steps back
Similar consumer protections were advanced in the US under the Biden administration, but were recently withdrawn, following airline pushback.
The proposed rule would have provided a range of compensation based on the length of delays, from $200 for delays of three hours to $775 for delays of nine hours or longer.
The USDOT stated that rescinding the proposed rule did not reflect a backing down on consumer rights and noted that the FAA Reauthorization Act of 2024 already addresses passenger rights.
“We will faithfully implement all aviation consumer protection requirements mandated by Congress, including the requirement to refund ticket prices to passengers in the case of airline cancelled or substantially delayed flights when consumers choose not to travel,” the USDOT stated, adding that the proposed rule, “went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.”
A USDOT spokesperson said to CBS News that the Department was simply “acknowledging the realities of carriers’ operations and the impact of overly burdensome regulations.”
