"The Travel Compensation Fund fulfils a number of essential functions that underpin financial stability and consumer security in the Australian travel industry sector.

In order to ensure that, as far as practicable, consumers who pay money to travel agents for travel services receive the appropriate service (or else a refund), the Travel Compensation Fund monitors the financial health of licensed travel agents to ensure that only persons who have sufficient financial resources to trade as a travel agent are TCF participants.

The Travel Compensation Fund receives monetary contributions from all licensed travel agency participants to ensure that adequate reserves are available for the administration of the Fund and for the TCF to pay compensation to any eligible consumers who have suffered loss as a result of the financial collapse of a participating travel agency business. "  More from  the TCF website