An airline lost my luggage on a domestic flight. What is the maximum compensation?

What the Law Says

The compensation limit for lost or damaged baggage on domestic flights in Australia is set by federal aviation regulations. Airlines operating within Australia must comply with these mandatory liability limits.

Under Australian law, airlines are strictly liable for lost, damaged, or delayed baggage on domestic flights. The maximum amount you can claim is fixed by regulation — not by airline policy or international treaties like the Montreal Convention (which applies only to international flights).

This limit applies regardless of the actual value of your items, unless you declared a higher value before travel and paid an additional fee — which is rarely offered for domestic flights.

You must make your claim in writing to the airline within 30 days of the date your baggage was due to be delivered.

Statutory Text

The maximum amount payable by an air carrier in respect of loss of, or damage to, baggage on a domestic air service is $1,600 per passenger.

— Air Navigation Regulations 1966, reg. 99A(2) — Liability for loss or damage to baggage

Statutory Text

An action against an air carrier in respect of loss of, or damage to, baggage on a domestic air service must be brought within 30 days after the date on which the baggage was delivered or should have been delivered.

— Air Navigation Regulations 1966, reg. 99A(4) — Time limit for action

What to Do

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