About the TCF
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The TCF is the primary protection in place to compensate consumers if the travel agent with which they book their travel collapses and they lose money which they have paid for travel arrangements. TCF participation is compulsory for licensed travel agents and the TCF is funded through initial contributions from agents joining the TCF, and through recoveries and investment income.
All Australian licensed travel agents (with the exception of NT agents) are required by travel agents legislation to be participants of the TCF in order to legally trade. The TCF assesses the financial position of each travel agent annually and the agent must satisfy the TCF Financial Criteria to be renewed. There are currently more than 3,200 participating travel agents in Australia (operating from 4,800 locations).
Since it was established in 1986, the TCF has paid out more than $56 million in compensation to travel agent clients who have lost money due to agent collapses.
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CLICK HERE to go to the TCF website (www.tcf.org.au)
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TCF changes mean audit cost savings for smaller agents
Media Release - 15 December 2011
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The Travel Compensation Fund (TCF) has today announced an initiative that means many smaller agents will no longer have to pay audit fees when annually renewing TCF participation. The change to the renewal process applies to existing TCF members with annual turnover of $1 million or less.
The changes to the TCF Financial Criteria, to be run initially for the 2011-2012 renewal year, will mean approved TCF participants will, after their first annual renewal, no longer be required to have their financial statements audited and Annual Financial Review (AFR) signed off by a registered company auditor.
Instead, agents will only need an accountant in public practice to prepare and verify the financial information they lodge with the TCF.
TCF participants (based on TCF’s 2010-2011 financial data) with an annual turnover of $1 million make up about 30 percent of the 3200 agents in the TCF.
Based on the accounting and audit costs reported to the TCF, the savings could be as much as $2,000.00, depending on the particular accounting and audit arrangements of each eligible participant.
The TCF Board, in approving this initiative, believes that the reduction in compliance costs through relaxation of audit requirements will not materially reduce the quality of the financial information provided to the TCF, or increase the risk of agent collapses and claims on the TCF.
“These changes are a significant benefit for many TCF participants. The TCF Board is always prepared to assist participants through reducing compliance costs where this can be done consistently with the duty imposed on it under legislation and the TCF Trust Deed to ensure that travel agents have sufficient financial resources to carry on business, and that the risk of consumer claims does not materially increase” said TCF Chief Executive Officer, Glen Wells. “The travel agent sector of the Australian travel industry is in a sound financial position and equipped to meet the challenges and market fluctuations.”
In addition to cost savings, the proposed changes will simplify the overall TCF renewal process for participants by removing one stage in the annual renewal process. This may reduce the time it takes for agents to renew TCF participation, perhaps by up to a month. It should also reduce the number of agents who have to pay late lodgment fees to the TCF due to auditors being too busy to meet the TCF lodgment requirements.
The audit changes will undergo TCF Board review after the 2011-2012 renewal year to evaluate effectiveness and further changes, if necessary, may be made in future renewal years.
TCF participants with annual turnover of $1 million or less make up only eight percent of total compensation claims over the last 10 years.
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Please CLICK HERE to download a pdf version of this media release.
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TCF Board Meeting Outcomes - 8 December 2011
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The Board of the TCF met on the 8th of December 2011.
To view a summary of the outcomes from this meeting, please CLICK HERE
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TCF Board Meeting Outcomes - 20 October 2011
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The Board of Trustees of the TCF met on the 20th of October 2011. At this meeting it was decided that Board outcomes would be reported by communication to key stakeholders following each Board meeting.
To view a summary of the outcomes from this meeting, please CLICK HERE
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