Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026

Administered by Department of the Treasury

Legislation au F2026L00293 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Assistant Treasurer and Minister for Financial Services

Terrorism and Cyclone Insurance Act 2003

Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026

The Terrorism and Cyclone Insurance Act 2003 (the Act) establishes the framework for the Australian Government’s terrorism reinsurance scheme. Where the Minister makes a declaration that an incident is a terrorist incident for the purposes of the Act, that declaration renders terrorism exclusion clauses in all eligible insurance contracts of no effect.

The purpose of the Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026 (the Instrument) is to declare a terrorist incident for the purposes of the Act. Section 6 of the Act provides that if, after consulting the Minister administering the Australian Security Intelligence Organisation Act 1979, the Minister is satisfied that a terrorist act has occurred in Australia, or two or more related terrorist acts have occurred in Australia, the Minister must declare that the act constitutes, or the acts together constitute, a terrorist incident for the purposes of the Act.  The term ‘terrorist act’ is defined by reference to section 3 of the Crimes Act 1914 and section 100.1 of the Criminal Code Act 1995.

The Act requires the Minister to consult the Minister administering the Australian Security Intelligence Organisation Act 1979 before making a declaration. The Minister consulted the Minister for Home Affairs on 10 February 2026. Targeted consultation was also undertaken with the Attorney-General’s Department and the Department of Home Affairs.

Following consultation, the Minister is satisfied that the that the attempted bombing of a crowd of people which occurred in the suburb of Perth, Western Australia, on 26 January 2026, is a terrorist act.

Declaration of the terrorist incident is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Instrument is not subject to disallowance or sunsetting (see item 31 of the table at section 10 and item 63 of the table at section 12 of the Legislation (Exemptions and Other Matters) Regulations 2015). It is appropriate that the Instrument be exempt from disallowance and sunsetting as it provides impacted persons and insurance providers with certainty and ensures business continuity. The Instrument will be registered on the Federal Register of Legislation to ensure appropriate transparency. 

The Instrument, once registered on the Federal Register of Legislation, cannot be revoked. This is to ensure policyholders have certainty on whether eligible claims can be paid out.

The Instrument commences the day after it is registered.

Details of the Instrument are set out in Attachment A.

A statement of Compatibility with Human Rights is at Attachment B.


ATTACHMENT A

Details of the Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026

Section 1 – Name

This section provides that the name of the instrument is the Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026 (the Instrument).

Section 2 – Commencement

This section provides that the Instrument commences on the day after the Instrument is registered on the Federal Register of Legislation.

Section 3 – Authority

The Instrument is made under the Terrorism and Cyclone Insurance Act 2003 (the Act).

Section 4 – Definitions

This section provides that the definition of the Act means the Terrorism and Cyclone Insurance Act 2003.

To assist readers, an explanatory note in this section alerts readers that expressions have the same meaning in the Instrument as in the Act as in force from time to time, in accordance with paragraph 13(1)(b) of the Legislation Act 2003.

Section 5 – Declaration of terrorist incident

This section provides that the attempted bombing of a crowd of people which occurred in the suburb of Perth, Western Australia, on 26 January 2026, is a terrorist act and constitutes a declared terrorist incident.

For the purposes of the Act, this declaration renders terrorism exclusion clauses in all eligible insurance contracts to have no effect.


ATTACHMENT B

Statement of Compatibility with Human Rights

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

Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 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

The Terrorism and Cyclone Insurance (Declared Terrorist Incident – Perth CBD) Declaration 2026 (the Instrument) declares a terrorist incident for the purposes of the Terrorism and Cyclone Insurance Act 2003 (the Act).

The Act establishes the framework for the Australian Government’s terrorism reinsurance scheme. Where the Minister makes a declaration that an incident is a terrorist incident for the purposes of the Act, that declaration renders terrorism exclusion clauses in all eligible insurance contracts of no effect.

Section 6 of the Act provides that if, after consulting the Minister for Home Affairs as the Minister administering the Australian Security Intelligence Organisation Act 1979, the Minister is satisfied that a terrorist act has occurred in Australia or two or more related terrorist acts have occurred in Australia, the Minister must declare that the act constitutes, or the acts together constitute, a terrorist incident for the purposes of the Act.  The term ‘terrorist act’ is defined by reference to section 100.1 of the Criminal Code Act 1995.

After careful consideration, the Minister is satisfied that the Perth incident that occurred on 26 January 2026 is a terrorist act. This Instrument therefore declares the terrorist incident and is declaratory in nature.

Human rights implications

This Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Terrorism and Cyclone Insurance Act 2003 was enacted to establish a framework for the Australian Government's terrorism reinsurance scheme, ensuring that insurance contracts are not invalidated by terrorism exclusion clauses when a terrorist incident is declared. This Act addresses the problem of financial insecurity for policyholders in the aftermath of terrorist acts by allowing the Minister to declare such incidents, thereby ensuring that insurance coverage remains effective. The Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026 was issued under the authority of the Parliament of Australia, specifically to declare the attempted bombing in Perth on 26 January 2026 as a terrorist incident. This declaration was made following consultations with relevant ministers and departments, ensuring that the decision aligns with national security intelligence. The policy objective is to provide certainty to insurance providers and policyholders, facilitating business continuity and enabling the processing of insurance claims without hindrance from terrorism exclusion clauses.

Scope and Application

The Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026 applies to all insurance contracts that are eligible under the Terrorism and Cyclone Insurance Act 2003, rendering terrorism exclusion clauses ineffective in the context of the declared terrorist incident in Perth on 26 January 2026. This legislative instrument is a declaration made under the authority of the Act, and it is designed to ensure that insurance providers can process claims related to the specified terrorist incident without the impediment of terrorism exclusion clauses. The Act itself is a Commonwealth legislation that provides the framework for the Australian Government's terrorism reinsurance scheme, and the Instrument is a specific application of that framework to a declared incident within Australia. The declaration is made after consultation with relevant authorities, including the Minister for Home Affairs, and is intended to provide certainty and facilitate business continuity for affected parties. The Instrument is not subject to disallowance or sunsetting, ensuring that the declaration remains in effect to support the resolution of claims arising from the incident.

Key Provisions

The Terrorism and Cyclone Insurance (Declared Terrorist Incident—Perth CBD) Declaration 2026 is a legislative instrument that, in accordance with Section 6 of the Terrorism and Cyclone Insurance Act 2003, declares the attempted bombing of a crowd in Perth, Western Australia, on 26 January 2026, as a terrorist incident. This declaration renders terrorism exclusion clauses in all eligible insurance contracts null and void, thereby permitting policyholders to make claims that would otherwise be barred by such clauses. The Minister for Financial Services and Terrorism Insurance made this declaration after consulting with the Minister for Home Affairs, who is also the Minister administering the Australian Security Intelligence Organisation Act 1979. This consultation process ensures that the decision to declare a terrorist incident is informed by national security assessments. The Terrorism and Cyclone Insurance Act 2003 imposes several obligations on the parties and entities it governs. Firstly, it requires the Minister to consult with the Minister for Home Affairs before making any declaration of a terrorist incident. Secondly, upon making such a declaration, the Minister must ensure that the declaration is registered on the Federal Register of Legislation, and it will then commence on the day following registration. Additionally, the Act mandates that the Instrument be exempt from disallowance and sunsetting to provide certainty and ensure business continuity for both policyholders and insurance providers. Failure to comply with the provisions of the Act or the declared Instrument may result in various civil or criminal consequences. Although the specific penalties are not detailed in the Act or the Instrument, breaches of related provisions under the Crimes Act 1914 and the Criminal Code Act 1995 can incur significant penalties. For instance, under the Criminal Code Act 1995, engaging in terrorist acts can result in penalties that include imprisonment for up to 25 years. Similarly, the Act’s provisions are designed to ensure that declarations are made accurately and in accordance with the legislative requirements to avoid any legal repercussions or financial liabilities for the government or the involved parties.

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Terrorism Law
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Declaration
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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.