No TCF financial returns for 12/13
Travel agents will not have to submit an annual financial return (AFR) to the Travel Compensation Fund for the 2012/13 financial year in a development that will delight retailers across the country.
A newly amended TCF Trust Deed, released today by the Travel Industry Transition Plan which comes into effect on July 1, confirmed that agents have lodged their final AFR.
Also from July 1, the TCF will no longer assess the financial viability of new and existing agents or require agents who do not meet TCF financial criteria to lodge guarantees.
Australian Federation of Travel Agents chief executive Jayson Westbury welcomed the development.
“This change will reduce rep tape and significant cost burden for travel agents which is welcome news to the industry at large,” he said. “AFTA continues to develop a modern, industry led accreditation scheme and the draft framework and criteria has now been approved by the AFTA board ahead of industry consultation workshops scheduled for August.”
Westbury stressed, however, that the changes only relate to the TCF’s auditing requirements and do not affect agents’ financial obligations for International Air Transport Association accreditation.
Agents must also maintain their participation of the TCF until July 1 next year when the requirement to hold a travel agents' license is dropped.
AFTA added that arrangements are underway to release the obligation of agents to have a bond with the TCF.
The TCF also released a statement outlining the changes and confirmed that agents will not have to lodge an AFR.
"From 1 July 2013, participants in the Fund will no longer be required to lodge their Annual Financial Review (including, for many, audited financial statements) with the TCF," it said.
"Also from 1 July 2013, the TCF will no longer assess financial viability of new and existing agents, or require agents who do not meet TCF financial criteria to lodge guarantees.
"New and existing travel agents will need to remain or become TCF participants until 30 June 2014."
The TCF said the consumer compensation scheme will continue to operate until June 30 2014.
“This means that the TCF will continue to compensate travel clients of licensed travel agents where the clients lose money due to a travel agent collapse occurring prior to 30 June 2014,” the TCF said.
If a company collapses after that date, consumers will no longer will able to lodge a claim.
The TCF also confirmed that some of the $29 million reserves held by the fund will be released to educate consumers and industry of the changes and to establish a voluntary accreditation scheme for travel agents.
“The remainder will be returned to the participating states and ACT governments in proportion to the number of travel agents in each jurisdiction,” it said.
Here is the full timetable of key dates:
July 1 2013: Annual Financial Returns for 2012/13 cease
July 1 2013: New application forms for new and existing TCF participation are put in place with no requirement for financial assessment.
July 1 2013: Lodgement of guarantees no longer required
July 1 2014: Applications for new and existing agents cease
July 1 2014: Consumer claims cease for new collapses
July 1 2015: Run out period ceases for consumer claims for collapses prior to July 1 2014
July to December 2015: TCF closes.
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