My travel agent went bankrupt after I paid for a holiday. Am I protected?

What the Law Says

In Australia, consumer protection for travel agent insolvency is not governed by a single national law. Instead, it depends on state-based legislation and voluntary industry schemes. Only Victoria and Queensland have statutory trust account requirements for travel agents — and even then, coverage is limited to agents licensed under those schemes.

Victoria’s Travel Agents Act 1986 requires licensed travel agents to hold customer payments in a trust account. If the agent becomes insolvent, consumers may claim refunds from the Travel Industry Compensation Fund — up to $100 per booking, with claims needing to be lodged within 7 days of the agent’s insolvency.

Queensland has a similar requirement under the Travel Agents Act 1990 (Qld), but its scheme is no longer active for new claims — the fund was closed to new applications in 2013.

There is no federal law mandating trust accounts or compensation for travel agent insolvency. The Australian Competition and Consumer Commission (ACCC) confirms that most consumers are not automatically protected unless they booked through an ATAS-accredited agent or used a credit card (which may offer chargeback rights).

Statutory Text

All moneys received by a licensee from or on behalf of a client in respect of a travel service must be paid into a trust account maintained by the licensee.

— Travel Agents Act 1986 (Vic), s. 15 — Trust accounts

Statutory Text

The Fund may pay to a claimant an amount not exceeding $100 in respect of each booking affected by the insolvency.

— Travel Agents Act 1986 (Vic), s. 24 — Compensation Fund

What to Do

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