Jayson Westbury says the decision is a “win” for the industry.

Plans to phase-out the Travel Compensation Fund (TCF) have received the green-light after the Australian government approved the launch of the proposed accreditation transition plan.

The State and Federal Consumer Affairs Ministers gave the go-ahead to the Travel Industry Transition Plan (TITP) last week, which will include winding up the TCF and introducing of a new consumer protection body.

Commencing the TITP from 1 July 2013, with a view to full implementation by 2015, Australian Federal of Travel Agents (AFTA) chief executive Jayson Westbury said the decision was a “win” for the industry and will make way for the launch of an “appropriate consumer protection” group.

According to the AFTA head, the implementation of a new Scheme would bring the industry into line with the rest of the Australian economy and consumer law, through regulations that meet the needs of the current travel industry and the modern Australian traveller.

“These changes will deliver a level playing field with protection for consumers and a more balanced approach for the travel industry,” Mr Westbury said.

As part of the transition, the TCF will be completely phased out by 2015, while the the majority of the $30 million in TCF’s accumulated reserves will be redistributed back to the State and Territories.