The Australian Department of the Treasury has released draft regulations to keep existing deferred sales model exemptions in place for 10 classes of add-on insurance products until 5 October 2031. The measure would prevent those exemptions from lapsing on 5 October 2026 and would allow insurers to continue selling the exempt products at the same time as the related principal product or service, rather than being subject to the regime’s four-day pause. The deferred sales model applies to add-on insurance linked to a principal product or service, such as a car purchase. The draft regulations would leave the current exemptions unchanged for add-on comprehensive and limited motor vehicle or vessel insurance, compulsory third party motor vehicle insurance, home and contents, home building, landlord, transport and delivery, travel, business-related and superannuation-related add-on insurance. Treasury said this follows a review and public consultation that found the existing exemptions, on balance, deliver benefits that justify continued exclusion from the regime. It also said proposals to amend the current exempt classes or create new ones were not needed to meet the policy objectives of the deferred sales model. If made, the regulations would commence the day after registration and would amend the Australian Securities and Investments Commission Regulations 2001 by extending the exemption period from five years to 10 years from the original start of the regime.

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