A federal ban on life insurers soliciting or using adverse genetic test results in underwriting took effect on October 8, with ASIC enforcing it and the Australian Financial Complaints Authority (AFCA) now able to hear disputes.
Assistant treasurer and financial services minister Daniel Mulino said in a statement that the government had acted to ensure the life insurance market operates fairly, and that people can access genetic testing without fearing the effect on their ability to get cover. He said Australians no longer have to choose between potentially life-saving genetic information and obtaining life insurance.
The statement said the ban does not stop individuals volunteering test results with written consent. Volunteered results can be used in underwriting only where doing so would not disadvantage the insurance offer or policy terms. Insurers can still use existing disease, signs or symptoms of a possible disease, and family medical history. Genomics Australia says the ban covers death, total and permanent disability, trauma and income protection cover, but not health insurance, and applies to new policies that start, or existing policies that are varied, on or after October 8.
ASIC will enforce the ban, and suspected breaches can be reported to the regulator, the statement said. Affected consumers can also seek resolution through AFCA or the Australian Human Rights Commission.
The penalties are significant. The legislation inserts section 33H into the Insurance Contracts Act, creating a strict liability offence carrying up to 60 penalty units (about $19,800) and a civil penalty of up to 5,000 penalty units (about $1.65 million), according to the Parliamentary Library. Both offences contain an exception where consent is given to provide the information.
AFCA’s updated rules, approved by ASIC after a June consultation, also took effect on October 8. They allow complaints alleging an insurer solicited or used protected genetic information contrary to the Insurance Contracts Act or the Disability Discrimination Act, including over non-standard terms or refusals of cover. The changes apply to individual policies and group policies issued through superannuation funds.
The ban follows years of partial self-regulation. The Financial Services Council introduced a voluntary moratorium in July 2019, though insurers could still request or use results above certain cover thresholds. It was folded into the Life Insurance Code of Practice in July 2023. The government announced a total ban in September 2024, and the legislation passed Parliament on April 1, 2026. Of more than 1,000 respondents to an earlier consultation, 97% supported a ban. The legislation is subject to a statutory review every five years, the minister’s statement said.
For brokers placing life cover, clients who have undergone testing now have a formal route to AFCA, and brokers may field questions about what insurers can and cannot request. The law separates protected genetic information from clinical diagnoses, which insurers can generally still consider.
Grey areas remain. The Financial Advice Association of Australia asked AFCA for guidance on how the rules will work in practice, and said it suspected “situations in the underwriting process where information could be revealed”. During parliamentary debate, independent MP Monique Ryan unsuccessfully moved to bring the review forward to three years, arguing that people already carrying loadings or exclusions would continue to face them unless they negotiate new cover. That point is relevant to advisers with existing clients.
Council of Australian Life Insurers chief executive Christine Cupitt said insurers “want people to access the information they need” to make informed health choices. Life insurance complaints to AFCA rose 13% in 2025, though they remain a small share of its caseload. Whether the new pathway generates significant case numbers remains to be seen.
