EXPLANATORY STATEMENT
ISSUED BY THE ATTORNEY-GENERAL
CLASSIFICATION (ADVERTISING FOR UNCLASSIFIED FILMS) AMENDMENT INSTRUMENT 2007 (NO.1)
The Classification (Publications, Films and Computer Games) Act 1995 (the Act) facilitates the operation of the intergovernmental co-operative legislative scheme for censorship in Australia. The Act provides for the classification of films, computer games and some publications.
Authority for making the Instrument
State and Territory legislation prohibits the advertising of unclassified films. However, the Classification Board may grant an exemption to an eligible film which allows it to be advertised before classification. Section 33 of the Act allows the Minister to determine the maximum number of advertising exemptions the Classification Board can grant in a calendar year to eligible films.
Purpose of the Instrument
The Classification (Advertising for Unclassified Films) Instrument 2005 (the 2005 Instrument) allows the public exhibition film industry a limited ability to market their upcoming, unclassified product, while providing exemption and classification information to consumers.
The 2005 Instrument requires various messages to be displayed on advertising for films which have been granted an exemption. This Instrument amends the 2005 Instrument by amending the long exemption message box reflecting the Government decision to integrate the Office of Film and Literature Classification (OFLC) into the Attorney‑General’s Department.
This Instrument also provides for an increase in the maximum number of exemptions that may be granted, from 110 to 136 per calendar year.
Issues giving rise to the need for the Instrument
The 2005 Instrument allocates quotas for exemptions to several named distributors and a quota to independents. Structural changes in the industry mean some changes to these quotas are required.
Universal Pictures International Australasia has split from United International Pictures and will distribute films in its own right from 1 July 2007. The amendments add an allocation of advertising exemptions for the newly created Universal Pictures.
In addition, changes in the industry have led to greater demand for exemptions for independent distributors of cinema release films. The amendments provide for a moderate increase in the quota of advertising exemptions allocated to independent distributors.
It is already a requirement that all advertising for eligible films must display the eligible films message. Both old and new eligible films Instruments have this condition.
Legislation currently before the Parliament would replace the advertising exemption scheme with a new scheme. The changes in this Instrument are intended to ensure the current scheme reflects operational requirements in the meantime.
The Attorney-General’s Department has met the costs of the new exemption message artwork.
State and Territory Censorship Ministers, the Motion Picture Distributors Association of Australia, Paramount Pictures and Universal Pictures International Australasia have been consulted.
Transitional arrangements
This Instrument commences on 1 July 2007. The Instrument amends the Classification (Advertising for Unclassified Films) Instrument 2005 (2005 Instrument). The Instrument is prospective in operation and includes a transitional period of six months. This will allow distributors to use any existing stocks before displaying the new message box.
The Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA). In accordance with sections 44(1) and 55(1) of the LIA, the Instrument is not subject to disallowance or sunsetting.
The Hon Philip Ruddock MP
ATTORNEY-GENERAL
Overview
The Classification (Advertising for Unclassified Films) Amendment Instrument 2007 (No. 1) amends the Classification (Advertising for Unclassified Films) Instrument 2005, which itself implements the Classification (Publications, Films and Computer Games) Act 1995. Enacted by the Parliament of Australia, the 1995 Act established an intergovernmental cooperative scheme for the censorship of films, computer games, and certain publications within Australia. This amendment aims to address structural changes within the film industry that have necessitated adjustments to the advertising exemption quotas for unclassified films. Specifically, it responds to the separation of Universal Pictures International Australasia from United International Pictures and the corresponding demand for increased advertising exemptions by independent distributors. The policy objective is to balance the need for industry flexibility in marketing unclassified films with consumer protection by ensuring adequate classification information is disseminated.
The 2007 Amendment Instrument introduces modifications to the advertising exemption message box, reflecting the integration of the Office of Film and Literature Classification into the Attorney-General’s Department. It increases the maximum number of annual advertising exemptions from 110 to 136 and reallocates quotas among film distributors, including the addition of a quota for the newly formed Universal Pictures. This adjustment ensures the current exemption scheme remains aligned with industry dynamics while maintaining consumer awareness of film classifications. The transitional arrangements allow for a six-month period for distributors to utilise existing advertising materials before the new requirements take effect.
Scope and Application
The Classification (Advertising for Unclassified Films) Amendment Instrument 2007 (No. 1) amends the Classification (Advertising for Unclassified Films) Instrument 2005, which applies to the public exhibition film industry in Australia, allowing certain unclassified films to be advertised before they receive a classification. This amendment responds to structural changes within the film distribution industry, such as the separation of Universal Pictures International Australasia from United International Pictures, and increased demand for advertising exemptions from independent distributors. The Act applies to distributors of films in Australia, both major studios and independent distributors, who seek to advertise films before they have been classified by the Classification Board. The geographic reach of the Act is national, given the intergovernmental co-operative legislative scheme for censorship in Australia. The Act excludes films that have already received a classification from the need for advertising exemptions. The Instrument increases the maximum number of exemptions that can be granted annually from 110 to 136 and allocates additional exemptions to Universal Pictures and independent distributors. The changes in this Instrument are intended to ensure the current scheme remains effective while awaiting the outcome of legislative changes proposed in Parliament. The Instrument is prospective and includes a transitional period to allow distributors to utilise existing advertising materials.
Key Provisions
The main operative sections of the Classification (Advertising for Unclassified Films) Amendment Instrument 2007 (No. 1) (the Instrument) are those that amend the Classification (Advertising for Unclassified Films) Instrument 2005 (the 2005 Instrument) to reflect structural changes in the film industry and to increase the number of advertising exemptions that can be granted in a calendar year. Specifically, section 1 of the Instrument amends the 2005 Instrument to change the message box that must be displayed on advertising for films that have been granted an exemption (section 3(1)(b) of the 2005 Instrument). Section 2 increases the maximum number of advertising exemptions that can be granted from 110 to 136 per calendar year (section 3(1)(a) of the 2005 Instrument). Section 3 reallocates the quotas for exemptions among distributors to reflect changes in the industry (section 3(2) of the 2005 Instrument).
The Instrument imposes several obligations on parties and entities it governs. Firstly, it requires that all advertising for eligible films must display the eligible films message, as stated in section 3(1)(b) of the 2005 Instrument. Secondly, it allocates quotas for exemptions to several named distributors and independent distributors, as stated in section 3(2) of the 2005 Instrument. Thirdly, it requires distributors to display the new message box on advertising for films that have been granted an exemption, as amended by section 1 of the Instrument.
The Instrument also provides for offences, penalties, or civil/criminal consequences for breach. However, the Instrument does not specify the penalties for breach. It is likely that the penalties for breach would be determined by the relevant State or Territory legislation that prohibits the advertising of unclassified films. In any case, the Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA) and is not subject to disallowance or sunsetting (sections 44(1) and 55(1) of the LIA).
In summary, the Classification (Advertising for Unclassified Films) Amendment Instrument 2007 (No. 1) amends the 2005 Instrument to reflect structural changes in the film industry and to increase the number of advertising exemptions that can be granted. It imposes obligations on distributors to display the eligible films message and to display the new message box on advertising for films that have been granted an exemption. The Instrument does not specify the penalties for breach, but it is likely that the penalties would be determined by the relevant State or Territory legislation. The Instrument is a legislative instrument for the purposes of the LIA and is not subject to disallowance or sunsetting.