Treasury releases adverse genetic test results ban draft regulation

Treasury is seeking feedback on draft regulations that ban the use of adverse genetic test results in life insurance, which come into effect on October 8.

The draft regulations under Insurance Contracts Amendment (Genetic Testing Protections in Life Insurance) Regulations 2026 clarify how the ban applies to certain genetic predispositions.

New subsection 13A(1), for example, lists protected genetic information to include alpha thalassemia, Huntington's disease, familial hypercholesterolemia, and hereditary breast and ovarian cancer syndrome.

Genetic terminology is complex and evolving and some genetic predispositions are commonly described using disease-like nomenclature (such as syndrome) or have a high penetrance rate, the Explanatory statement reads, which may create uncertainty as to whether information relates to a genetic predisposition or a disease for the purposes of the ban.

"By expressly listing specific genetic predispositions, the regulations remove this ambiguity and ensure that information about genetic testing for those predispositions is clearly captured by the meaning of protected genetic information, consistent with the policy intent. This provides certainty and clarity for consumers, health practitioners and insurers, and supports consistent application of the ban," the statement said.

The legislation passed both houses of parliament on April 1.

Minister for financial services Daniel Mulino said genetic testing is an important tool that can save lives through early detection and prevention.

"Australians should be able to access this testing with confidence, without concern it could limit their access to life insurance," he said, adding the exposure draft regulations will clarify on how the ban will operate and strengthen the framework for compliance and enforcement.

The newly proposed draft regulation is also "strengthening compliance and enforcement by confirming that strict liability offences and civil penalty provisions will be captured under the infringement notice scheme in the Insurance Contracts Act 1984."

"Once in force, the ban will prevent life insurers from requesting or using adverse genetic testing results in their underwriting decisions," Mulino said.

"This reform delivers on the government's commitment to balance access to affordable life insurance with the health and wellbeing of Australians."

Stakeholders have until June 26 to submit a response.