Budget flags $40m+ for airline competition and consumer protection

written by Jake Nelson | May 13, 2026

Passengers at Sydney Airport’s T3 Qantas domestic terminal. (Image: Sydney Airport)

The federal government has announced more than $40 million over the next four years to support competition and consumer protection in the aviation sector.

In the 2026 budget, announced this week, $38.1 million over four years from 2026–27 and $7.3 million per year ongoing was earmarked for the government’s consumer protection priorities, as well as $4.5 million over four years to continue the ACCC’s domestic airline monitoring program.

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According to the budget papers, the $38.1 million will serve to “enhance protections for aviation consumers, including to establish the Aviation Consumer Protection Authority and an independent Aircraft Noise Ombudsperson, to work with industry to establish the Aviation Consumer Ombuds scheme, and to implement new aviation‑specific disability standards”.

It comes after government data released earlier this month showed that 55 per cent of Australians surveyed had experienced flight disruptions over a 12-month period, with an overwhelming majority unsatisfied with airlines’ complaint-handling processes.

Transport Minister Catherine King, at the time, flagged the low satisfaction rate with complaints as a reason why the government’s consumer protection legislation, put to parliament last month, has become necessary.

 
 

“At the moment, individual airlines and airports manage their own processes and complaints, but it is clear that system is not working. That is why we introduced new legislation in April, to ensure there are clear and easy to follow processes when things go wrong,” she said.

“The legislation paves the way for the Aviation Consumer Protections Charter, an Australian first, which will set minimum standards expected from airline and airport services for aviation consumers. This charter will be overseen by an authority within the Department of Infrastructure.

“This legislation is an important first step to ensure the travelling public get a better deal, and have a far more consistent and clear [method] of getting the help and support they need when flights are disrupted.”

The Australian Airports Association (AAA) has welcomed the news of the extension of the ACCC’s domestic airline monitoring reports, which were due to end in December.

“This extension of the ACCC Domestic Airline Monitoring report is a smart move and helps support a transparent, efficient and competitive aviation system in Australia,” chief executive Simon Westaway said.

“The report helps identify emerging risks, cost pressures and areas where competition and consumer outcomes can be improved.”

The consumer watchdog in March said it was “closely monitoring” Australia’s airline industry amid the disruptions from the Middle East crisis.

The Transport Minister’s office has been contacted for comment.

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