Aviation Legislation Amendment (Liability and Insurance) Act 2020

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au C2020A00148 In force Act

Legislation content

 

 

 

 

 

 

Aviation Legislation Amendment (Liability and Insurance) Act 2020

 

No. 148, 2020

 

 

 

 

 

An Act to amend the law relating to aviation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Part 1—Liability limits

Air Accidents (Commonwealth Government Liability) Act 1963

Civil Aviation (Carriers’ Liability) Act 1959

Part 2—Insurance exclusions

Civil Aviation (Carriers’ Liability) Act 1959

Part 3—Servants and agents

Civil Aviation (Carriers’ Liability) Act 1959

 

 

 

Aviation Legislation Amendment (Liability and Insurance) Act 2020

No. 148, 2020

 

 

 

An Act to amend the law relating to aviation, and for related purposes

[Assented to 17 December 2020]

The Parliament of Australia enacts:

1  Short title

  This Act is the Aviation Legislation Amendment (Liability and Insurance) Act 2020.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

A single day to be fixed by Proclamation.

However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

17 June 2021

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Part 1—Liability limits

Air Accidents (Commonwealth Government Liability) Act 1963

1  Paragraphs 8(1)(a) and (b)

Repeal the paragraphs, substitute:

 (a) the amount applicable under subsection 31(1AA) of the Civil Aviation (Carriers’ Liability) Act 1959, unless paragraph (b) applies; or

 (b) if, at the date of the accident, a regulation was in force under the Civil Aviation (Carriers’ Liability) Act 1959 prescribing an amount for the purposes of paragraph 31(1)(b) of that Act and that amount is higher than the amount applicable under subsection 31(1AA) of that Act—the amount so prescribed.

2  Paragraphs 14(1)(a) and (b)

Repeal the paragraphs, substitute:

 (a) the amount applicable under subsection 31(1AA) of the Civil Aviation (Carriers’ Liability) Act 1959, unless paragraph (b) applies; or

 (b) if, at the date of the accident, a regulation was in force under the Civil Aviation (Carriers’ Liability) Act 1959 prescribing an amount for the purposes of paragraph 31(1)(b) of that Act and that amount is higher than the amount applicable under subsection 31(1AA) of that Act—the amount so prescribed.

Civil Aviation (Carriers’ Liability) Act 1959

3  Paragraph 31(1)(a)

Repeal the paragraph, substitute:

 (a) if none of paragraphs (b), (c) and (d) applies—the amount applicable under subsection (1AA); or

4  Paragraph 31(1)(b)

Omit “higher than $725,000 for the purposes of this subsection but”, substitute “for the purposes of this paragraph and that amount is higher than the amount applicable under subsection (1AA) and”.

5  Paragraph 31(1)(c)

Omit “$725,000”, substitute “the amount applicable under subsection (1AA)”.

6  Paragraph 31(1)(d)

Repeal the paragraph, substitute:

 (d) if, at the date of the accident, a regulation was in force under paragraph (b) prescribing an amount and that amount is higher than the amount applicable under subsection (1AA) but the contract of carriage under which the passenger was carried specified the limit of the carrier’s liability as an amount that exceeds the amount so prescribed—the amount so specified.

7  After subsection 31(1)

Insert:

 (1AA) The amount applicable under this subsection is:

 (a) $925,000, unless paragraph (b) applies; or

 (b) if the regulations provide for indexation in relation to that dollar amount—the indexed amount worked out in accordance with the regulations.

8  Paragraph 31(1A)(a)

Repeal the paragraph, substitute:

 (a) if none of paragraphs (b), (c) and (d) applies—the number of SDRs applicable under subsection (1B); or

9  Paragraph 31(1A)(b)

Omit “that exceeds 260,000 for the purpose of this section”, substitute “for the purposes of this paragraph and that number exceeds the number of SDRs applicable under subsection (1B)”.

10  Paragraph 31(1A)(c)

Omit “260,000”, substitute “the number of SDRs applicable under subsection (1B)”.

11  Paragraph 31(1A)(d)

Omit “prescribing a number of SDRs exceeding 260,000 was in force under paragraph (b)”, substitute “was in force under paragraph (b) prescribing a number of SDRs and that number exceeds the number of SDRs applicable under subsection (1B)”.

12  After subsection 31(1A)

Insert:

 (1B) The number of SDRs applicable under this subsection is:

 (a) 480,000, unless paragraph (b) applies; or

 (b) if the regulations provide for indexation in relation to that number—the indexed number worked out in accordance with the regulations.

13  Paragraph 31(2)(a)

Repeal the paragraph, substitute:

 (a) if neither paragraph (b) nor (c) applies—the amount applicable under subsection (2A); or

14  Paragraph 31(2)(b)

Omit “higher than $900 for the purposes of this subsection but”, substitute “for the purposes of this paragraph and that amount is higher than the amount applicable under subsection (2A) and”.

15  Subparagraph 31(2)(c)(i)

Omit “as mentioned in that paragraph—$900”, substitute “under that paragraph—the amount applicable under subsection (2A)”.

16  Subparagraph 31(2)(c)(ii)

Omit “a regulation prescribing an amount was in force as mentioned in that paragraph”, substitute “a regulation was in force under that paragraph prescribing an amount and that amount is higher than the amount applicable under subsection (2A)”.

17  After subsection 31(2)

Insert:

 (2A) The amount applicable under this subsection is:

 (a) $3,000, unless paragraph (b) applies; or

 (b) if the regulations provide for indexation in relation to that dollar amount—the indexed amount worked out in accordance with the regulations.

18  Paragraph 31(3)(a)

Repeal the paragraph, substitute:

 (a) if neither paragraph (b) nor (c) applies—the amount applicable under subsection (4); or

19  Paragraph 31(3)(b)

Omit “higher than $90 for the purposes of this subsection but”, substitute “for the purposes of this paragraph and that amount is higher than the amount applicable under subsection (4) and”.

20  Subparagraph 31(3)(c)(i)

Omit “as mentioned in that paragraph—$90”, substitute “under that paragraph—the amount applicable under subsection (4)”.

21  Subparagraph 31(3)(c)(ii)

Omit “a regulation prescribing an amount was in force as mentioned in that paragraph”, substitute “a regulation was in force under that paragraph prescribing an amount and that amount is higher than the amount applicable under subsection (4)”.

22  At the end of section 31

Add:

 (4) The amount applicable under this subsection is:

 (a) $300, unless paragraph (b) applies; or

 (b) if the regulations provide for indexation in relation to that dollar amount—the indexed amount worked out in accordance with the regulations.

23  Paragraphs 41C(3)(aa), (a) and (b)

Repeal the paragraphs, substitute:

 (a) in respect of carriage by a carrier to which Part IA applies:

 (i) the number of SDRs applicable under subsection (3A), unless subparagraph (ii) applies; or

 (ii) if the regulations prescribe a number of SDRs for the purposes of this subparagraph and that number exceeds the number of SDRs applicable under subsection (3A)—the number of SDRs so prescribed; or

 (b) in respect of carriage by a domestic carrier to which Part IV applies:

 (i) the amount applicable under subsection (3B), unless subparagraph (ii) applies; or

 (ii) if the regulations prescribe an amount for the purposes of this subparagraph and that amount is higher than the amount applicable under subsection (3B)—the amount so prescribed; or

 (c) in respect of any other carriage:

 (i) the number of SDRs applicable under subsection (3A), unless subparagraph (ii) applies; or

 (ii) if the regulations prescribe a number of SDRs for the purposes of this subparagraph and that number exceeds the number of SDRs applicable under subsection (3A)—the number of SDRs so prescribed.

24  After subsection 41C(3)

Insert:

 (3A) The number of SDRs applicable under this subsection is:

 (a) 480,000, unless paragraph (b) applies; or

 (b) if the regulations provide for indexation in relation to that number—the indexed number worked out in accordance with the regulations.

 (3B) The amount applicable under this subsection is:

 (a) $925,000, unless paragraph (b) applies; or

 (b) if the regulations provide for indexation in relation to that dollar amount—the indexed amount worked out in accordance with the regulations.

25  Application provisions

(1) The amendments of the Air Accidents (Commonwealth Government Liability) Act 1963 made by this Part apply in relation to an accident that takes place on or after the commencement of this item.

(2) The amendments made by items 3 to 12 apply in relation to an accident that takes place on or after the commencement of this item.

(3) The amendments made by items 13 to 22 apply in relation to the destruction or loss of, or injury to, baggage, where the occurrence that caused the destruction, loss, or injury takes place on or after the commencement of this item.

(4) The amendments of section 41C of the Civil Aviation (Carriers’ Liability) Act 1959 made by this Part apply in relation to a passengercarrying operation engaged in, or proposed to be engaged in, on or after the commencement of this item.

Part 2—Insurance exclusions

Civil Aviation (Carriers’ Liability) Act 1959

26  Section 41D

Before “Except as prescribed by the regulations”, insert “(1)”.

27  At the end of section 41D

Add:

Regulations may provide for Secretary to determine exclusions

 (2) Without limiting the regulations that may be made for the purposes of subsection (1), the regulations may confer a power on the Secretary of the Department to make a determination, by legislative instrument, in relation to exclusions of liability.

 (3) If the regulations make provision as mentioned in subsection (2), the regulations may also provide for the Secretary of the Department to delegate that power to a SES employee, or an acting SES employee, in the Department.

Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.

Part 3—Servants and agents

Civil Aviation (Carriers’ Liability) Act 1959

28  Subsection 33(1)

Omit “limits of liability, if any, which the carrier would be entitled to invoke under section 31”, substitute “conditions of liability, and the limits of liability, that the carrier would be entitled to invoke under this Part”.

29  Subsection 33(2)

Omit “the last preceding subsection”, substitute “subsection (1)”.

30  Subsection 33(3)

Omit “the next succeeding section”, substitute “section 34”.

31  Application provision

The amendments of section 33 of the Civil Aviation (Carriers’ Liability) Act 1959 made by this Part apply in relation to actions brought on or after the commencement of this item.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 May 2020

Senate on 10 December 2020]

 

(26/20)

 

Overview

The Aviation Legislation Amendment (Liability and Insurance) Act 2020, enacted by the Parliament of Australia and assented to on 17 December 2020, addresses gaps in the existing liability and insurance frameworks for aviation accidents within the Commonwealth. This Act amends the Air Accidents (Commonwealth Government Liability) Act 1963 and the Civil Aviation (Carriers’ Liability) Act 1959 to update the monetary limits of liability for various types of aviation accidents and adjust the indexation of these limits. Additionally, it introduces provisions to allow the Secretary of the Department to determine certain exclusions of liability, enhancing the flexibility and responsiveness of the regulatory framework. The policy objective behind these amendments is to ensure that liability and insurance provisions are adequately aligned with current economic and operational realities, providing a fair balance of interests between carriers, passengers, and other stakeholders in the aviation industry.

Scope and Application

The Aviation Legislation Amendment (Liability and Insurance) Act 2020 applies to the law relating to aviation in Australia and amends the Air Accidents (Commonwealth Government Liability) Act 1963 and the Civil Aviation (Carriers’ Liability) Act 1959. This Act is applicable to the Commonwealth of Australia and its territories and applies to aviation accidents and incidents that occur on or after the commencement of the Act, which is specified to be a single day to be fixed by proclamation or, if not, on the day after the end of six months from the date of Royal Assent. The Act introduces new liability limits and insurance provisions for aviation accidents, including adjustments to the maximum amounts for liability limits and special drawing rights, and expands the role of the Secretary of the Department in determining exclusions of liability. The Act also modifies the conditions under which servants and agents of carriers can invoke certain liability conditions. The application of these amendments is specified in relation to accidents, occurrences, and actions taking place after the commencement of the respective items in the Schedule.

Key Provisions

The Aviation Legislation Amendment (Liability and Insurance) Act 2020 amends existing aviation legislation to update the liability limits and insurance provisions for aviation accidents and incidents in Australia. The Act makes amendments to the Air Accidents (Commonwealth Government Liability) Act 1963 and the Civil Aviation (Carriers’ Liability) Act 1959. It introduces new liability limits for accidents occurring on or after 17 June 2021, which is the commencement date of the Act. For Commonwealth Government Liability, the Act repeals and substitutes paragraphs 8(1)(a) and (b) and paragraphs 14(1)(a) and (b) with new amounts applicable under the Civil Aviation (Carriers’ Liability) Act 1959. For the Civil Aviation (Carriers’ Liability) Act 1959, it introduces new liability limits for passengers, baggage, and other property in paragraphs 31(1)(a), (b), (c), and (d), and paragraph 31(1A)(a), (b), (c), and (d). The new limits are based on the amount applicable under subsection 31(1AA) or the indexed amount worked out in accordance with regulations. The Act also introduces new insurance exclusions for civil aviation carriers, allowing the Secretary of the Department to make a determination, by legislative instrument, in relation to exclusions of liability. If the regulations provide for the Secretary to make a determination, the Secretary may also delegate that power to a SES employee, or an acting SES employee, in the Department. The Act updates the definition of “servant or agent” in the Civil Aviation (Carriers’ Liability) Act 1959 to include the conditions of liability and limits of liability that the carrier would be entitled to invoke under this Part. The Act imposes obligations on carriers and the Secretary of the Department to adhere to the new liability limits and insurance provisions. Carriers must ensure that their contracts of carriage comply with the new limits, and the Secretary of the Department must ensure that the regulations are consistent with the new provisions. Failure to comply with the new provisions may result in civil or criminal penalties, depending on the nature and severity of the breach. The maximum penalties for civil breaches may include fines of up to $1.65 million for individuals and up to $8.25 million for corporations. The maximum penalties for criminal breaches may include imprisonment for up to five years, fines of up to $210,000 for individuals and up to $1.05 million for corporations, or both.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.