Notice Under Section 9K(1)(B) of Civil Aviation (Carriers' Liability) Act 1959

Overview

The Civil Aviation (Carriers' Liability) Act 1959 was enacted to ensure that carriers are held liable for damages that may occur during the international carriage of passengers, baggage, and cargo by air, thereby providing a measure of protection to those affected by such incidents. The Act addresses the need for a consistent and internationally recognised framework for liability in civil aviation, aiming to harmonise the rules across different jurisdictions and provide clear guidelines for compensation. In making this declaration, Catherine King, as the Minister for Infrastructure, Transport, Regional Development and Local Government, has acted to update the liability limits under the 1999 Montreal Convention, ensuring that Australia remains compliant with international standards. The policy objective of this legislative update is to reflect changes in economic conditions and provide fair compensation to passengers and cargo owners in the event of accidents, delays, or loss, thereby maintaining the integrity and reliability of the international aviation system.

Scope and Application

The Civil Aviation (Carriers' Liability) Act 1959 applies to all air carriers who are Australian operators and to passengers and their baggage, as well as cargo, travelling on international flights where the carrier is an Australian operator or the flight is to, from, or within Australia. The Act's jurisdiction extends to all international carriage by air governed by the 1999 Montreal Convention, and it includes provisions for the limits of liability in cases of passenger injury or death, baggage damage, and cargo loss or damage. The revised limits of liability as per the 1999 Montreal Convention, which took effect from 28 December 2024, are incorporated into Australian law through this notice, thus ensuring that Australian carriers and passengers are subject to the updated international standards. The notice issued by the Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, supersedes previous notifications and comes into effect immediately upon publication in the Gazette.

Key Provisions

The Civil Aviation (Carriers’ Liability) Act 1959 (the "Act") provides that the limits of liability under the 1999 Montreal Convention have been revised, as per section 9K(1)(b) (Gazetted on 1 November 2025). The primary sections involved are section 9K, which mandates the declaration of revised limits of liability in accordance with the 1999 Montreal Convention, and the specific articles of the Convention that are referenced, such as Articles 21, 22(1), 22(2), and 22(3). These articles pertain to passenger injury, delay in carriage of persons, baggage, and cargo, respectively. The Act imposes obligations on carriers to adhere to the revised limits of liability as declared under section 9K. Carriers must ensure they comply with these updated limits, which are now set at 151,880 Special Drawing Rights (SDRs) for each passenger in cases of death or bodily injury, 6,303 SDRs for each passenger in case of delay, 1,519 SDRs for baggage, and 26 SDRs per kilogram for cargo. This means that carriers cannot be held liable for amounts exceeding these limits unless a higher amount is specifically agreed upon in the contract of carriage. The revised limits apply to all States Parties to the 1999 Montreal Convention and became effective as of 28 December 2024. Non-compliance with the revised limits of liability as declared under the Act can lead to significant legal consequences. While the Act itself does not explicitly outline specific offences or penalties for breaching the limits of liability, it is essential for carriers to adhere to the updated limits as failure to do so could result in legal disputes and potential liabilities exceeding the prescribed limits. The 1999 Montreal Convention, which the Act references, provides a framework within which any disputes regarding liability would be governed, including potential penalties for non-compliance. In summary, the Act mandates adherence to the revised limits of liability as declared under section 9K, which are based on the 1999 Montreal Convention. Carriers are obligated to comply with these limits, and failure to do so could result in legal repercussions and liabilities that exceed the specified limits. The notice published in the Gazette on 1 November 2025 supersedes the previous notice from 6 December 2019, and the revised limits became effective on 28 December 2024.