Milestone	Date
New framework commences	20 February 2026
Transitional period ends – full compliance required	20 August 2026
Safety Management Plan review cycle	Every 3 years (ongoing)

New Safety Duties for Courtesy Bus Operators

The new framework introduces formal safety duties for all clubs that operate a courtesy bus, including those that have previously been exempt from operator accreditation requirements. Under the framework, clubs are classified as Duty Holders and are required to take a proactive, preventative approach to managing safety risks. 

The core obligation is to do what is reasonably practicable to eliminate or reduce safety risks in the services provided. In practice, this means clubs must: 

• Establish systems to identify and manage safety risks on an ongoing basis 
• Monitor and regularly review those risks 
• Ensure all vehicles are safe and properly maintained 
• Promote a safety culture and clearly communicate responsibilities to staff, contractors, and drivers 
• Ensure that any equipment or systems used in connection with vehicle operations are safely installed, used, and maintained 
• Implement a process to monitor drivers and others to confirm services are being delivered safely 
• Provide adequate information, training, and instruction so that everyone involved can perform their role safely 

These are not simply administrative requirements. They represent a genuine shift toward embedding safety as a core operational responsibility. 

Responsibilities of Boards and Management Committees 

Under the new framework, Boards and Management Committees carry direct responsibility for ensuring their club complies with the relevant safety legislation. Individual board members and committee members can be found personally liable for breaches. 

This means those in governance roles are expected to: 

• Stay informed about safe work practices relevant to courtesy bus operations and keep that knowledge current 
• Understand the nature of the club’s operations and the risks involved 
• Ensure the club has adequate resources to address and reduce those risks 
• Confirm that appropriate processes are in place to manage risks, respond to incidents, and meet safety obligations 
• Verify that these resources and processes are not just documented, but actively implemented 

This may require a more deliberate approach to governance than has been necessary in the past. Board members should consider this an area where formal briefings or training may be worthwhile.

Safety Management Plans

All courtesy bus operators will be required to prepare and maintain a written Safety Management Plan (SMP). The SMP is a practical document that should: 

• Identify and describe each potential hazard associated with providing the service 
• Assess the safety risks that could arise from exposure to those hazards 
• Outline the actions to be taken to eliminate or reduce each risk 
• Specify who is responsible for taking each action 

The plan must be in writing and must state the date it takes effect. It is not a document that can sit in a drawer. It needs to be accessible to all Duty Holders along with supporting documents such as policies, procedures, records, and controls. 

All Duty Holders must be consulted during the development and review of the plan. 

When the SMP Must Be Reviewed

The SMP is not a set-and-forget document. Clubs are required to review it: 

• At least every 3 years as a matter of course 
• After any safety incident
• When the service changes
• When new or changing risks are identified 

Building a review schedule into your club’s governance calendar now will help ensure compliance is maintained over time

Fatigue Management

The new framework also introduces specific obligations around driver fatigue management. Clubs must keep records for each driver that capture the days and times they are driving or available to drive. 

These records must be made available to the Department of Transport and Main Roads (TMR) upon request, to support compliance monitoring and safety oversight. 

Fatigue management is a genuine safety issue, not just a paperwork requirement. Robust record-keeping protects both passengers and your club. 

What This Means for Your Insurance 

This is where the regulatory changes intersect with your insurance arrangements, and where clubs need to understand the risk transfer implications. 

Policy Response and Coverage 

Most club insurance programs include Public Liability cover and specific motor vehicle cover for courtesy bus operations. The new regulatory framework does not change what events are covered, but it may influence: 

• How claims are assessed - insurers will consider whether clubs took reasonably practicable steps to manage safety risks, as now required by law 
• Premium calculations - underwriters assess risk based on the controls in place; stronger safety management systems generally support better premium outcomes
• Coverage conditions - if a safety incident occurs and the club cannot demonstrate compliance with the new framework; insurers may examine whether policy conditions have been met 

Insurance Transfers Financial Risk – Not Regulatory Obligations

This is an important distinction. Insurance transfers the financial risk of an incident to an insurer. It does not remove your club’s regulatory obligations or personal liability as a Duty Holder.  

Even with comprehensive cover in place: 

• Regulatory penalties for non-compliance remain the club’s responsibility 
• Personal liability for board and committee members as Duty Holders is not transferred by insurance 
• Claims assessment may be more complex if safety frameworks were not in place at the time of an incident 

Coverage During the Transition Period

Between now and 20 August 2026, clubs should check their current policies for any conditions related to regulatory compliance. Some policies include clauses requiring adherence to relevant legislation.  

It is worth confirming with your insurance adviser: 

• Whether your policy contemplates the new regulatory framework 
• Whether any specific notification or documentation requirements apply 
• That coverage remains unaffected during the transition period 

Next Steps 

With full compliance required by 20 August 2026, now is the time to act. Consider the following priorities: 

• Review the new framework and understand how it applies to your operations, including whether you were previously exempt from accreditation requirements. 
• Engage your Board or Management Committee to ensure governance responsibilities are understood at the leadership level. 
• Develop your Safety Management Plan in consultation with all Duty Holders. Use the transitional period to get this right. 
• Establish fatigue management records for all drivers and put a process in place to maintain them. 
• Review your insurance program to confirm your coverage reflects your operations and risk profile under the new framework. 

Speak With Us

Clear Insurance works with a range of clubs and community organisations, and we understand the operational realities you face. If you have questions about how these changes may affect your insurance arrangements, we are here to help. 

If you need assistance with your insurance program Contact Us at 1300 721 132 or at info@clearinsurance.com.au