Airlines may soon be forced to pay cash refunds to customers in Australia for cancelled or unreasonably delayed flights under the government's much-anticipated crackdown on the aviation sector.

It comes after widespread backlash from consumer groups and calls for more competition against Qantas and Virgin airlines, which currently dominate the domestic market.

Today, ABC investigative reporter Adele Ferguson on the new rights for travellers and if the industry shake-up goes far enough.

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Adele Ferguson, ABC Investigative reporter