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FACT SHEET
Travel Agents Repeal Bill 2014
Since 1986, Travel Agents have been required to be
licensed and to be members of the Travel Compensation
Fund (TCF). This Fund monitored the finances of member
travel agents and provided compensation to consumers
who suffered loss when travel agents did not pass on their
payments to end suppliers.
New business models, coupled with technological
advancements, have gradually reduced the relevance and
effectiveness of the existing system. This market change has
also steadily disadvantaged local travel businesses that find
themselves competing with offshore providers operating
outside the regulatory framework.
There are currently 34 travel agents licensed in Tasmania.
In 2012, a majority of State and Territory Ministers for
Consumer Affairs approved the Travel Industry Transition
Plan (Transition Plan) setting out reforms to travel agents'
regulation and the TCF.
The Transition Plan recommends a regulatory approach
which complements industry efforts to promote confidence
and quality, and maintains appropriate levels of consumer
protection.
Under the plan, financial supervision provided by the Travel
Compensation Fund was removed in July 2013. The Travel
Compensation Fund started winding down its operations on
1 July 2014. It will continue to accept claims relating to
activities that occurred prior to 1 July 2014 but will not
consider any claims relating to issues arising after 1 July
2014. The Fund will be wound up entirely by the end of
2015.
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As part of the Plan, all States committed to repealing their
Travel agents' legislation by mid-2014 where practicable.
Since 1 January 2011, the Australian Consumer Law (ACL)
has protected consumers when buying goods and services,
including travel. It applies to all Australian businesses and
imposes the same obligations on travel agents no matter
where they operate in Australia.
Under the ACL, travel products or services automatically
come with a range of consumer guarantees and other
protections. These consumer guarantees require travel
agents to provide services with an acceptable level of skill
and technical knowledge, and to take all necessary care to
avoid causing loss or damage to their customers.
If a travel agent breaches these ACL provisions, consumers
may seek civil damages to cover any financial losses they
may have suffered as a result.
The peak industry body for travel agents, the Australian
Federation of Travel Agents (AFTA), has developed a new
voluntary accreditation scheme known as the AFTA Travel
Accreditation Scheme, or ATAS.
The ATAS is an industry-wide scheme open to travel agents
launched on 1 July 2014. Consumers using an ATAS
accredited business can expect that their travel agent has
met relevant regulatory requirements, is required to abide
by a charter and code of conduct, and has minimum
protections in place such as public liability insurance and
complaints handling processes.
Repealing the Travel Acts Act 1987 will remove red tape
and a financial cost on travel agents operating in the State. It
will thereby remove the disadvantage that travel agents face
when competing with overseas and online agencies
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