Australia Banned Use of Genetic Test Results
New legislation prohibits life insurers from using genetic test results to calculate premiums or determine coverage.
Updated on Oct. 14, 2026 in Life Sciences
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A federal ban on life insurers using adverse genetic test results has taken effect across Australia. The legislation aims to prevent discrimination based on genetic testing in life insurance, covering policies such as death, income protection, and total and permanent disability.
Why it matters
The government enacted the ban to ensure the life insurance market operates fairly for all Australians. By prohibiting these practices, the law seeks to eliminate discrimination based on an individual's genetic testing profile.
The legislation introduces section 33H into the Insurance Contracts Act, which carries a maximum civil penalty of 5,000 penalty units, equivalent to $1.65 million. Strict liability offences under the new rules carry a penalty of 60 units, or $19,800.
The players
Australian Financial Complaints Authority
This body now has the authority to hear disputes regarding the ban on genetic test usage.
Australian Human Rights Commission
Consumers can seek resolution for suspected breaches of the new legislation through this agency.
ASIC
This national regulator enforces the ban and receives reports regarding suspected breaches of the new rules.
Financial Services Council
This industry body previously managed the voluntary moratorium that existed before the federal government enacted this law.
The details
Under the new rules, insurers are barred from using genetic test results for death, trauma, income protection, and total and permanent disability coverage. However, companies may still use family medical history and existing symptoms during the underwriting process, and individuals can still choose to share test results voluntarily with written consent.
Timeline
July 2019: Financial Services Council introduced a voluntary moratorium.
July 2023: The moratorium was folded into the Life Insurance Code of Practice.
September 2024: The government announced a total ban.
1 April 2026: The legislation passed Parliament.
8 October 2026: The federal ban and updated AFCA rules took effect.
The Big Picture
The new mandate marks a departure from the previous voluntary industry codes, such as the Life Insurance Code of Practice, by codifying these protections into the Insurance Contracts Act. This shift signals a move toward stricter government oversight of how personal medical data is utilised in financial services.
Australians seeking life, trauma, or income protection insurance can no longer be penalised by insurers based on their genetic test results. This change ensures that people can pursue genetic testing without fearing that the outcomes will negatively affect their access to coverage or premium costs.
The takeaway
The new law prioritises consumer protection by removing barriers to genetic testing. Patients should feel more confident in exploring their genetic health now that the data cannot be used against them in standard life insurance underwriting.
What happens next
The legislation is subject to a statutory review every five years to assess its ongoing efficacy and impact on the Australian life insurance market.
Further reading
For more information on regulatory changes, visit the Life Sciences section.
Source note: This article includes information reported by Insurance Business.
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