Civil Aviation Orders 95.4, 95.10, 95.12, 95.12.1, 95.32 and 95.55 Amendment Instrument 2026

Explanatory Statement

Civil Aviation Regulations 1988

Purpose

The purpose of Civil Aviation Orders 95.4, 95.10, 95.12, 95.12.1, 95.32 and 95.55 Amendment Instrument 2026 (the instrument) is to amend Civil Aviation Orders (CAOs) 95.4, 95.10, 95.12, 95.12.1, 95.32 and 95.55 (the relevant CAOs) to ensure that aircraft to which each CAO applies and that are operating under the visual flight rules (VFR) in any of the new Class D control areas (CTA) established above and surrounding Bankstown aerodrome (YSBK) control zone (CTR) (the new Class D CTAs) are fitted with a specified transponder.

The instrument achieves this by amending the relevant CAOs to adopt the requirements mentioned in item 3A of Table 26.68 (2) of the Part 91 (General Operating and Flight Rules) Manual of Standards 2020 (the Part 91 MOS). This table item sets out requirements for transponders to be fitted to aircraft in VFR operations in the new Class D CTAs and was inserted by the related Parts 91, 131, 133 and 135 Manuals of Standards Amendment Instrument 2026 (the MOS amendments instrument) which also commenced on 9 July 2026.

The new Class D CTAs are designed to allow safe access to and from the existing Bankstown aerodrome (YSBK) beneath the Class C airspace created to facilitate the operation of the new Western Sydney International Airport (WSI) (YSWS). For safety, additional specified flight notification requirements also apply for all flights within the new Class D CTAs as Air Traffic Control (ATC) requires a filed flight plan before issuing a clearance for this airspace. (These requirements are not imposed by the amendments made by the instrument.)

Legislation

Section 98 of the Civil Aviation Act 1988 (the Act) empowers the Governor-General to make regulations for the Act and in the interests of the safety of air navigation. Relevantly, the Governor-General has made the Civil Aviation Safety Regulations 1998 (CASR) and the Civil Aviation Regulations 1988 (CAR).

Under subsection 98(5) of the Act, the regulations may provide that the Civil Aviation Safety Authority (CASA) may issue a CAO containing a direction, instruction, notification, permission, approval or authority.

Under subsection 98(5AAA) of the Act, a CAO issued under a regulation made under subsection (5) is a legislative instrument.

Regulation 5 of CAR provides for the issue by CASA of CAOs. Under subsection 5(1A), CASA may issue a direction, instruction or notification or give a permission, approval or authority, that it is empowered under CAR or CASR to issue or give, in CAOs or otherwise in writing, unless the contrary intention appears in the regulation conferring the power or function, or imposing the obligation or duty.

Subpart 11.F of CASR provides for the granting of exemptions from particular provisions of the regulations. Subregulation 11.160(1) of CASR provides that, for subsection 98(5A) of the Act, CASA may grant an exemption from compliance with a provision of the regulations.

Under subregulation 11.160(2) of CASR, an exemption may be granted to a person or a class of persons and may specify the class by reference to membership of a specified body or any other characteristic.

Under subregulation 11.160(3), an exemption may be granted on application by a person or on CASA’s own initiative.

Under subregulation 11.170(3) of CASR, in deciding whether to grant an exemption, CASA must regard as paramount the preservation of at least an acceptable level of aviation safety.

Regulation 11.205 of CASR provides that CASA may impose conditions on an exemption if necessary in the interests of the safety of air navigation. Under regulation 11.210 of CASR, it is a strict liability offence (with a maximum penalty of 50 penalty units) not to comply with the obligations imposed by a condition.

Under subsection 14(1) of the Legislation Act 2003 (the LA), a legislative instrument may make provision in relation to matters by applying, adopting or incorporating provisions of an Act or disallowable legislative instrument as in force at a particular time or as in force from time to time. A legislative instrument may also make provision in relation to matters by applying, adopting or incorporating any matter contained in any other instrument or writing as in force at, or before, the time the legislative instrument commences. Under subsection 14(2) of the LA, unless the contrary intention appears, the legislative instrument may not make provision in relation to a matter by applying, adopting or incorporating any matter contained in an instrument or other writing as in force or existing from time to time. However, subsection 98(5D) of the Act provides that, despite section 14 of the LA, a legislative instrument made under the Act or the regulations may apply, adopt or incorporate any matter contained in any instrument or other writing as in force or existing from time to time, even if the other instrument or writing does not yet exist when the legislative instrument is made.

The relevant CAOs

Each of the CAOs 95.4, 95.10, 95.12, 95.12.1, 95.32 and 95.55 grants exemptions from various provisions of CASR and CAR in relation to specified types of sport or recreational aircraft (as defined in each CAO) if they are listed with a sports aviation body. Sports aviation body is defined in CASR to include certain specified aviation bodies (for example, the Gliding Federation of Australia) and includes an approved self-administering aviation organisation (ASAO). For example, in CAO 95.10, the specified aircraft are microlight aeroplanes. In CAO 95.32, the specified aircraft are a single-place or two-place powered parachute or a single-place or two-place weight-shift-controlled aeroplane. In CAO 95.55, the specified aircraft are light sport aircraft (experimental or production), lightweight aeroplanes and ultralight aeroplanes.

Each of the CAOs includes conditions for flying the specified types of sport or recreational aircraft, including requirements for when the aircraft may be flown in Class A, B, C or D airspace (controlled airspace).

Other legislation

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument. Under subsection 13(1) of the LA, subsection 33(3) applies to legislative instruments as if each provision of the instrument were a section of an Act.

Background

The introduction of the YSWS flight paths and airspace changes to implement WSI requires airspace changes around Bankstown aerodrome (YSBK). These airspace changes have been approved by the Office of Airspace Regulation (OAR) and will commence on 9 July 2026. Details of the airspace changes will be published by Airservices Australia (AA) in the Designated Airspace Handbook (DAH). The airspace changes support the safe and efficient integration of WSI into the national airspace system. Further details regarding these changes and their development is set out in the Explanatory Statement for the MOS amendments instrument.

Due primarily to the confined nature of the available airspace for entry and exit to Bankstown aerodrome (YSBK), outside of Class C airspace, and the anticipated volume of movements in this confined airspace, various volumes of Class G airspace are being designated Class D CTA which will contain VFR routes with specific procedures required for their use. The VFR routes to and from Bankstown aerodrome are mostly contained in the new Class D CTAs.

The new Class D CTAs require:

specific flight notification resulting in ATC having a filed flight plan
VFR routes to be flown at 1 500, 1 800 or 2 500 ft above mean sea level (AMSL), depending on location
a transponder to be fitted, as per the requirements for Class C airspace.

VFR aircraft operating on published VFR routes in the proposed Class D CTAs can expect a coded clearance which will be published in the Aeronautical Information Publication (the AIP), specifically the YSBK ERSA FAC. Coded clearances are predefined clearances which reflect the new VFR routes and are referred to by name only to minimise radio congestion.

The flight notification requirements for VFR flights in Class D airspace are already adequately expressed in section 9.02 of the Part 91 MOS which requires pilots in command to submit a flight plan in accordance with procedures published in the AIP for a VFR flight in Class D airspace. Additional guidance material will likely be added to the Part 91 Acceptable Means of Compliance/Guidance Material (AMC/GM) regarding CASR 91.240 Flight Notifications for clarity.

Currently only aircraft operating under the instrument flight rules (IFR) are required to have a transponder in Class D airspace. The CAO amendments made by this instrument require aircraft to which the CAOs apply (which only fly under the VFR) to be fitted with a transponder of a specified kind in the following new Class D CTAs:

Bankstown CTA D1;
Sydney CTA D1;
Western Sydney CTA D1;
Western Sydney CTA D2;
Western Sydney CTA D3.

Bankstown CTA D1 defines the Class D CTA above Bankstown aerodrome (YSBK) control zone (CTR). Sydney CTA D1 contains the one-way (outbound only) Woronora VFR route from the Bankstown aerodrome CTR. Western Sydney CTA D1 contains VFR routes to and from the Bankstown aerodrome CTR. Western Sydney CTA D2 defines the Class D CTA to the north of Bankstown aerodrome above 1 500 ft AMSL and Western Sydney CTA D3 defines the Class D CTA to the south of Bankstown aerodrome above 1 500 ft AMSL.

The instrument works in tandem with the MOS amendments instrument. The amendments to the Manuals of Standards (MOSs) made by that instrument will require aircraft to which those MOSs apply that are operating in the new Class D CTAs to also be fitted with appropriate transponders. For further details regarding those requirements see the Explanatory Statement for the MOS amendments instrument.

Overview of instrument

In accordance with subsection 33(3) of the Acts Interpretation Act 1901, the instrument amends the following CAOs, all of which apply to aircraft under the administration of an ASAO:

Civil Aviation Order 95.4 (Exemptions from CAR and CASR — Sailplanes and Towing Aircraft) Instrument 2024 (CAO 95.4)
Civil Aviation Order 95.10 (Exemptions from CAR and CASR — Microlight Aeroplanes) Instrument 2024 (CAO 95.10)
Civil Aviation Order 95.12 (Exemptions from CAR and CASR — Gyroplanes Not Exceeding 250 kg) Instrument 2024 (CAO 95.12)
Civil Aviation Order 95.12.1 (Exemptions from CAR and CASR — LSA Gyroplanes and ASRA-compliant Gyroplanes) Instrument 2024 (CAO 95.12.1)
Civil Aviation Order 95.32 (Exemptions from CAR and CASR — Powered Parachutes and Weight-shift-controlled Aeroplanes) Instrument 2024 (CAO 95.32)
Civil Aviation Order 95.55 (Exemptions from CAR and CASR — Certain Light Sport Aircraft, Lightweight Aeroplanes and Ultralight Aeroplanes) Instrument 2024 (CAO 95.55).

The relevant CAOs are amended to require aircraft to which they apply, that are operating in the new Class D CTAs, to be fitted with a transponder specified in column 3 of item 3A of the Part 91 MOS. The amendments made to CAOs 95.4, 95.12 and 95.12.1 require the transponder to be operable. This is because the general requirements for the operation of surveillance equipment set out in section 26.69 of the Part 91 MOS do not apply under those CAOs. The amendments made to CAOs 95.10, 95.32 and 95.55 only required reference to the new item 3A of Table 26.68 (2) of the Part 91 MOS, as an earlier amendment had already added the need for transponders as required by the Part 91 MOS.

The effect of the amendments is to require sport or recreational aircraft to which the relevant CAOs apply, and that operate under the VFR in these new Class D CTAs, to be fitted with transponders. VFR flight in any Class D airspace did not previously require transponder use for any aircraft.

CASA has assessed the impact that the instrument will have on aviation safety and is satisfied that the additional requirement for aircraft to which the relevant CAOs apply that are flying in any of the new Class D CTAs to be fitted with a transponder (and to submit a flight plan) is necessary to ensure safe operations following the opening of WSI, and will enhance safety when compared to the current controls for flight in Class G airspace and other existing Class D CTA airspace.

Document incorporated by reference

The amendments made by the instrument incorporate parts of the Part 91 (General Operating and Flight Rules) Manual of Standards 2020, as in force from time to time.

The Part 91 MOS prescribes matters relating to general operating and flight rules permitted under Part 91 of CASR to be prescribed in the MOS.

The Part 91 MOS is freely available to view or download from the Federal Register of Legislation at: <https://www.legislation.gov.au>.

Content of instrument

Section 1 names the instrument.

Section 2 states that the instrument commences on 9 July 2026.

Section 3 states that each CAO mentioned in the title of a Schedule to the instrument is amended in accordance with the Schedule.

Schedule 1 amends CAO 95.4 to insert new paragraphs 8.4 and 8.5. The effect of new paragraph 8.4 is to require relevant sailplanes (as defined in CAO 95.4) operating in any of the new Class D CTAs to be fitted with an operable transponder per item 3A of Table 26.68 (2) of the Part 91 MOS. The effect of new paragraph 8.5 is to allow, for the purposes of paragraph 8.4, the fitting of approved Mode A/C transponders to meet the requirement to fit approved Mode S transponders to aircraft manufactured on or after 6 February 2014, or aircraft modified by having their transponder installation replaced on or after 6 February 2014.

Schedule 2 amends CAO 95.10 to insert into subparagraph 10A.8(a) a reference to item 3A of Table 26.68 (2) of the Part 91 MOS. This will allow aircraft to which the CAO applies that are operating in any of the new Class D CTAs to be fitted with approved Mode A/C transponders to meet the requirement to fit approved Mode S transponders to aircraft manufactured on or after 6 February 2014, or aircraft modified by having their transponder installation replaced on or after 6 February 2014.

Schedule 3 substitutes subparagraph 11.2(f) of CAO 95.12 with a new subparagraph which has the effect of requiring aircraft to which the CAO applies that are operating under the VFR in the new Class D CTAs to be fitted with an operable transponder as per column 3 of item 3A of Table 26.68 (2) of the Part 91 MOS.

Schedule 4 substitutes subparagraph 12A.3(d) of CAO 95.12.1 with a new subparagraph which has the effect of requiring aircraft to which the CAO applies that are operating under the VFR in the new Class D CTAs to be fitted with an operable transponder as per column 3 of item 3A of Table 26.68 (2) of the Part 91 MOS.

Schedule 5 amends CAO 95.32 to insert into subparagraph 8B.8(a) a reference to item 3A of Table 26.68 (2) of the Part 91 MOS.

Schedule 6 amends CAO 95.55 to insert into subparagraph 9A.8(a) a reference to item 3A of Table 26.68 (2) of the Part 91 MOS.

The effect of the amendments made by Schedules 5 and 6 is the same to that made by Schedule 2 to CAO 95.10.

Legislation Act 2003

Under subsection 8(4) of the LA, an instrument is a legislative instrument if it is made under a power delegated by the Parliament, any provision of it determines the law or alters the content of the law, and it has the direct or indirect effect of affecting a privilege or interest, imposing an obligation, creating a right, or varying or removing an obligation or right. The instrument satisfies these requirements.

Paragraph 10(1)(d) of the LA provides that an instrument will be a legislative instrument if it includes a provision that amends or repeals another legislative instrument. This instrument amends CAOs 95.4, 95.10, 95.12, 95.12.1, 95.32 and 95.55 that were registered as legislative instruments and is, therefore, also a legislative instrument, subject to tabling and disallowance in the Parliament under sections 38 and 42 of the LA.

Sunsetting

Part 4 of Chapter 3 of the LA (the sunsetting provisions) does not apply to the instrument, because the instrument relates to aviation safety and is made under CASR and CAR (item 15 of the table in section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015).

The instrument deals with aviation safety matters that, once identified, require a risk response or treatment plan. Generally speaking, item 15, when invoked, is necessary to ensure that, in the interests of aviation safety, a relevant instrument has enduring effect, certainty and clarity for aviation operators and organisations.

However, the relevant CAOs are repealed at the end of 1 December 2027. The instrument is an amending instrument and, therefore, will be automatically repealed under section 48A of the LA. These repeals will happen before the sunsetting provisions would have repealed the relevant CAOs or the instrument if they had applied. Thus, in practice, no sunsetting avoidance issues arise and there is no impact on parliamentary oversight.

Consultation

The aviation industry has been aware of the proposed transponder requirement for some time. In December 2023, AA published an industry briefing paper for comment titled Proposed changes to general aviation operations in the Sydney basin in support of the new Western Sydney International (Nancy-Bird Walton) Airport (the AA Briefing Paper) which included a proposed transponder zone in Class D airspace and indicated that CASA had advised that regulatory changes would be required to implement the requirement to carry a transponder.

Consultation under section 17 of the LA was undertaken on a draft of the instrument before the instrument was made. The consultation opened on 3 June 2026 and closed on 17 June 2026.

The consultation sought feedback on the MOS and CAO changes that require transponder usage in the Class D CTAs surrounding Bankstown aerodrome (YSBK). Additionally, the consultation sought input regarding proposed guidance material that intends to make improvements to Part 91 AMC/GM for regulation 91.240 of CASR, specifically around flight notification requirements.

Four responses were received. No feedback identified any issues that would warrant changes to the proposed MOS and CAO amendments. Two responses indicated that the amendments achieved the intended outcome.

CASA is satisfied that no further consultation is appropriate or reasonably practicable for this instrument for section 17 of the LA.

Sector risk, economic and cost impact

Subsection 9A(1) of the Act states that, in exercising its powers and performing its functions, CASA must regard the safety of air navigation as the most important consideration. Subsection 9A(3) of the Act states that, subject to subsection (1), in developing and promulgating aviation safety standards under paragraph 9(1)(c), CASA must:

(a) consider the economic and cost impact on individuals, businesses and the community of the standards; and

(b) take into account the differing risks associated with different industry sectors.

The cost impact of a standard refers to the direct cost (in the sense of price or expense) which a standard would cause individuals, businesses and the community to incur. The economic impact of a standard refers to the impact a standard would have on the production, distribution and use of wealth across the economy, at the level of the individual, relevant businesses in the aviation sector, and the community more broadly. The economic impact of a standard could also include the general financial impact of that standard on different industry sectors.

The economic and cost impact of the instrument has been determined by:

(a) the identification of individuals and businesses affected by the instrument; and

(b) consideration of how the requirements to be imposed on individuals and businesses under the instrument will be different compared to existing requirements; and

(c) a valuation of the impact, in terms of direct costs on individuals and businesses affected by the instrument to comply with the different requirements. This valuation is consistent with the principles of best practice regulation of the Australian Government; and

(d) a valuation of the impact the different requirements would have on the production, distribution and use of wealth across the economy, at the level of the individual, relevant businesses in the aviation sector, and the community more broadly; and

(e) consideration of community impacts, beyond those direct impacts on individuals and businesses affected by the instrument, that are relevant if the instrument were to result in flow-on effects to other aviation businesses, or local non-aviation businesses that experience a change in their activity due to the instrument.

The amendments made by the instrument that require aircraft operating in the new Class D CTAs to be fitted with transponders must be complied with by aircraft operators. As at May 2026, CASA understands that a basic Mode S transponder can be retrofitted for approximately $8 000. While it is difficult to accurately estimate the number of sport or recreational aircraft that will require a transponder due to the amendments, there is some information regarding the number of aircraft that use the affected airspace on a regular basis and hence will require a transponder. See the Explanatory Statement for the MOS amendments instrument for this information. Note that it relates to all aircraft using the affected airspace during a particular month and does not separately identify numbers of types of aircraft, for example, sport or recreational aircraft.

While the amendments made by the instrument impose a cost on some operators, the fitting of transponders enhances safety and CASA considers that, together with the flight notification requirements, it is the least costly method of achieving the required aviation safety outcomes around Bankstown aerodrome and WSI.

Impact on categories of operations

Any sport or recreational aircraft to which a CAO amendment made by the instrument applies, that is flown within the new Class D CTAs surrounding Bankstown aerodrome and that does not already have a transponder fitted will be impacted by the requirement to fit a transponder.

Impact on regional and remote communities

There is no direct impact on regional and rural areas as the instrument makes no changes to the airspace of regional or rural areas or to requirements for aircraft flown in such airspace.

Office of Impact Analysis (OIA)

CASA submitted a Preliminary Assessment for the changes to the airspace around the new WSI to the OIA. It was CASA’s assessment that the economic impact of the changes to the airspace, including the impact to the users of the Bankstown and Camden aerodromes, was outlined in the Environmental Impact Statement Western Sydney International (Nancy-Bird Walton) Airport Airspace and flight design path (the EIA) and that further analysis in the form of an Impact Analysis (IA) document was not required. OIA agreed with CASA’s assessment that an IA was not required (OIA25-09383). The EIA was prepared by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts is available at <https://www.wsiflightpaths.gov.au>.

In any event, an IA is not required in this case, as the amendments are made to exemption conditions in CAOs, and exemptions are covered by a standing agreement between CASA and OIA under which an IA is not required for exemptions (OIA reference number: OIA23‑06252).

Statement of Compatibility with Human Rights

The Statement of Compatibility with Human Rights at Attachment 1 has been prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Making and commencement

The instrument has been made by the Director of Aviation Safety, on behalf of CASA, in accordance with subsection 73(2) of the Act.

The instrument commences on 9 July 2026 and is automatically repealed in accordance with section 48A of the LA.

Attachment 1

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011

Civil Aviation Orders 95.4, 95.10, 95.12, 95.12.1, 95.32 and 95.55 Amendment Instrument 2026

This legislative instrument is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the legislative instrument

This legislative instrument amends Civil Aviation Orders 95.4, 95.10, 95.12, 95.12.1, 95.32 and 95.55 (the relevant CAOs) to ensure that sport or recreational aircraft to which a relevant CAO applies that are operating under the visual flight rules (VFR), in any of the new Class D control areas established above and surrounding Bankstown aerodrome (YSBK) control zone (CTR) (the new Class D CTAs), are fitted with a specified transponder.

Transponders are not required for flights wholly within either the Bankstown Class D CTR or any other Class D airspace located outside the Sydney Basin.

Human rights implications

The instrument promotes the right to life in Article 6 of the International Covenant on Civil and Political Rights by protecting aviation safety by requiring aircraft conducting VFR operations in the new Class D CTAs to have specified transponders so that Air Traffic Control can identify and locate the aircraft.

Conclusion

This legislative instrument is compatible with human rights.

Civil Aviation Safety Authority

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

Interactions

Legislation content

Interactions

Authorises

All Versions