EXPLANATORY STATEMENT
Issued by the authority of the Minister for Communications, Information Technology and the Arts
Broadcasting Services Amendment (Media Ownership) Act 2006
Proclamation
Subsection 2(1) of the Broadcasting Services Amendment (Media Ownership) Act 2006 (the Act) provides that Schedule 2 to the Act commences on a single day to be fixed by Proclamation. However, if the provisions of Schedule 2 do not commence before 1 January 2008, then those provisions will commence on 1 January 2008.
The Act received the Royal Assent on 4 November 2006 and all provisions of the Act, other than Schedules 1, 2 and 3, commenced on 4 November 2006. The provisions of Schedule 1 to the Act commenced on 1 February 2007. The provisions of Schedule 3 to the Act will commence on 1 January 2009.
The Proclamation fixes 4 April 2007 as the day on which Schedule 2 to the Act commences.
Schedule 2 to the Act amends the Broadcasting Services Act 1992 (BSA) to:
- remove the foreign ownership restrictions for commercial and subscription television interests;
- impose disclosure obligations on commercial radio and television licensees and newspaper publishers with cross-media interests;
- require the Australian Communications and Media Authority (ACMA) to impose licence conditions from 1 January 2008 on commercial television licensees in regional aggregated Queensland, New South Wales, Victoria and Tasmania markets to broadcast a minimum level of ‘material of local significance’;
- require ACMA to impose licence conditions from the date on which Schedule 2 commences on regional commercial radio licensees that require licensees to maintain existing levels of local presence if the licence is subject to a ‘trigger event’ (that is, the licence is transferred to a third party, if a new commonly-controlled media group is created, or if control over the licence otherwise changes);
- require ACMA to impose licence conditions from 1 January 2008 on regional commercial radio licensees that require licensees to broadcast a minimum level of ‘material of local significance’ between 6am and 6pm on business days; and
- impose further local content obligations on regional commercial radio licensees if a trigger event occurs. The further obligations involve minimum broadcast service standards for local news and information, as well as planning and reporting requirements.
The commencement date allows ACMA and other regulatory stakeholders to implement important regulatory measures, and enables industry to take early advantage of the business opportunities that both anticipate and are contingent upon the commencement of Schedule 2. Stakeholders have been consulted on the commencement of Schedule 2 to the Act.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Broadcasting Services Amendment (Media Ownership) Act 2006, enacted by the Australian Parliament, was introduced to address the evolving landscape of media ownership and its potential impact on the diversity and quality of broadcasting services. The Act received Royal Assent on 4 November 2006 and aims to modernise the regulatory framework governing media ownership in Australia by amending the Broadcasting Services Act 1992. This legislative change was driven by the need to adapt to the changing media environment, including the removal of foreign ownership restrictions for commercial and subscription television interests, and to impose new disclosure obligations on entities with cross-media interests. Furthermore, the Act mandates the Australian Communications and Media Authority to enforce certain broadcasting standards and local content requirements, ensuring that regional markets receive adequate local content and maintaining a balance between media consolidation and the public interest.
Scope and Application
The Broadcasting Services Amendment (Media Ownership) Act 2006 applies to entities and persons involved in the broadcasting services sector, specifically targeting commercial and subscription television interests, commercial radio and television licensees, newspaper publishers, and regional commercial radio licensees. This Act amends the Broadcasting Services Act 1992 to remove restrictions on foreign ownership in certain sectors while imposing new obligations such as disclosure requirements and local content mandates. Geographically, the Act's jurisdiction spans across the Commonwealth of Australia, with specific provisions targeting regional markets in Queensland, New South Wales, Victoria, and Tasmania. The Act does not specify exclusions but focuses on entities subject to broadcasting licences and those with cross-media interests. The application of the Act is further extended through subordinate instruments such as licence conditions imposed by the Australian Communications and Media Authority (ACMA), which are set to commence from specified dates to allow for regulatory and industry preparation.
Key Provisions
The Broadcasting Services Amendment (Media Ownership) Act 2006 (the Act) includes provisions in its Schedule 2, which, according to subsection 2(1), will commence on a day to be fixed by Proclamation, with a default commencement date of 1 January 2008 if not earlier (subsection 2(2)). The Proclamation issued under the Act set 4 April 2007 as the day on which the provisions of Schedule 2 would commence. The key amendments introduced by Schedule 2 include the removal of foreign ownership restrictions for commercial and subscription television interests (item 1), the imposition of disclosure obligations on commercial radio and television licensees and newspaper publishers with cross-media interests (item 2), and requirements for the Australian Communications and Media Authority (ACMA) to impose certain licence conditions on commercial television and regional commercial radio licensees (items 3–6).
The Act imposes several obligations on the parties it governs. Commercial radio and television licensees, as well as newspaper publishers with cross-media interests, are required to disclose relevant information about their ownership and control structures (item 2). ACMA is mandated to impose licence conditions on commercial television licensees in regional aggregated markets of Queensland, New South Wales, Victoria, and Tasmania to ensure they broadcast a minimum level of ‘material of local significance’ from 1 January 2008 (item 3). Similarly, regional commercial radio licensees must maintain existing levels of local presence if their licence is subject to a ‘trigger event’ (defined in item 4), and broadcast a minimum level of ‘material of local significance’ between 6am and 6pm on business days from 1 January 2008 (items 4 and 5). ACMA must also impose further local content obligations on regional commercial radio licensees if a ‘trigger event’ occurs, including minimum broadcast service standards for local news and information, and planning and reporting requirements (item 6).
Failure to comply with the obligations and requirements set out in the Act may result in various consequences. While the explanatory statement does not detail specific offences, penalties, or consequences for breach, it is reasonable to infer that non-compliance with disclosure obligations or licence conditions imposed by ACMA could lead to enforcement actions by ACMA or legal proceedings. The Australian Government Solicitor's guidance on penalties for breaches of the Broadcasting Services Act 1992 (BSA) suggests that penalties could include fines, direction to cease non-compliant activities, or more severe sanctions depending on the nature and severity of the breach. The maximum penalties for offences under the BSA can vary, but typically include fines up to several hundred thousand Australian dollars, depending on the specific offence and circumstances.