The Federal Government will defer implementation of Hayne royal commission reforms by six months due to disruptions caused by the coronavirus pandemic.

“The deferral will enable the financial services industry to focus their efforts on planning for the recovery and supporting their customers and their staff during this unprecedented time,” Treasurer Josh Frydenberg said in a statement today.

Measures the Government planned to introduce into Parliament by June 30 will now enter the House of Representatives by December, while those due for introduction by the end of the year will be scheduled by the following June.

Mr Frydenberg says commencement dates contained in royal commission-related draft legislation issued before the coronavirus pandemic will also be extended by six months.

The Insurance Council of Australia (ICA) last week said it had written to Mr Frydenberg “seeking a delay to the timeframes for implementation of the royal commission legislation to July 1 2022.”

ICA welcomes today's announcement, spokesman Campbell Fuller told insuranceNEWS.com.au.

"ICA and its members continue to strongly support implementation of changes that genuinely and measurably improve consumer outcomes," he said.

"The additional time recognises that insurers, like the rest of the Australian economy, have been seriously affected by COVID-19. Rather than prepare for regulatory change, they have had to focus resources on supporting policyholders through the aftermath of the recent season of natural disasters and the impact of COVID-19."

Consumer Action Law Centre Director of Policy and Campaigns Katherine Temple says the group is supportive of a maximum six-month extension.

“We recognise that we are in extraordinary times,” Ms Temple told insuranceNEWS.com.au today. “Having these reforms introduced sooner rather than later is what we need to see happen, but we understand the Government has had to reprioritise in the short-term and we think six months is a reasonable compromise.”

Choice CEO Alan Kirkland says the group looks forward to working with the Government to finalise remaining reforms as soon as possible.

“The six-month deferral strikes a sensible balance between recognising the reality of these unprecedented circumstances and the need to legislate reforms to protect consumers who will need this even more in the coming months,” he said.