The Australian Travel Industry Association has confirmed the government has extended the deferred sales model exemption for travel insurance to 5 October 2031, after regulations were registered on 16 September 2026.
Extension delivers decade of certainty
The exemption, which allows travel businesses to sell travel insurance at the point of booking, was first secured by ATIA in 2021 and had been due to expire on 5 October 2026. ATIA had argued in a comprehensive submission earlier this year that travel insurance decisions belong at the time of booking, when travellers understand their destination, itinerary and activities.
ATIA said the extension avoided consequences including greater exposure to medical and cancellation costs for uninsured travellers, added pressure on consular services, which handled more than 26,000 cases involving Australians overseas in the 2024-25 year, and reduced certainty for small and medium travel businesses. Every policy sold under the exemption still carries a 14-day cooling-off period and strict Design and Distribution Obligations.
ATIA chief executive Dean Long said the outcome reflected the value of point-of-sale expertise.
“ATIA-accredited businesses do not just sell a policy. They match cover to the trip to support travellers, and that is worth protecting,” Long said.
“Booking is when travellers understand their destination, their itinerary and their risk. That is when the insurance conversation should happen, and this extension keeps it there.”
Advocacy delivers certainty for smaller operators
Long said the extension demonstrated the impact of the association’s advocacy work.
“This is what advocacy looks like. We have put forward a strong, evidence-based case to Government, and Government has acted with a commonsense response,” he said, adding the certainty was particularly important for small and medium operators.
According to ATIA, around 85 per cent of Australians say they are more likely to book with an ATIA-accredited business, a reflection of the trust built through matching cover to individual travel circumstances such as cruising, snow sports or complex international itineraries.
