On 27 July 2026, the Australian Treasury issued for consultation an exposure draft of regulations that extend the class exemptions to the deferred sales model (DSM) for add-on insurance until 2031. Furthermore, the Australian Treasury is seeking input on whether any new class exemptions should be granted.
Background
The DSM is set out in the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act). It enables consumers to make informed decisions about add-on insurance product purchases by introducing a four-day deferral period between the sale of the primary product and the sale of the add-on insurance to the consumer. Under the ASIC Act, a class of add-on insurance products may be exempted from the DSM through regulations.
The Australian Securities and Investments Commission Regulations 2001 (Cth) (ASIC Regulations) currently exempts certain classes of add-on insurance products (in regulation 12B) from the DSM for a period of 5 years. The ASIC Regulations commenced on 5 October 2021.
Draft Regulations
Treasury has published an exposure draft of the Australian Securities and Investments Commission Amendment (Deferred Sales Model Exemptions) Regulations 2026 (Cth) (the draft Regulations). The effect of the draft Regulations is to extend the existing class exemptions from the DSM for a further 5 years.
The existing classes of add-on insurance are:
- add‑on comprehensive motor vehicle or vessel insurance products;
- add‑on compulsory third party motor vehicle insurance products;
- add‑on home and contents insurance products;
- add‑on home building insurance products;
- add‑on landlord insurance products;
- add‑on limited motor vehicle or vessel insurance products;
- add‑on transport and delivery insurance products;
- add‑on travel insurance products;
Treasury also invites stakeholders to comment on whether the ASIC Regulations should continue in whole or in part as well as whether or not any new class exemptions should be granted.
Next steps
The deadline for feedback on the draft Regulations is 7 August 2026.