Public Lending Right Scheme 1997 (Modification No. 1 of 2016)

Overview

The Public Lending Right Act 1985, enacted to address the issue of income loss for Australian book creators and publishers due to public lending, has been subject to modifications to ensure the scheme remains relevant and effective. The Act established the legislative framework for a Public Lending Right scheme, which recognises the financial impact on authors and publishers when their works are borrowed from public libraries. In 2014-15, the scheme facilitated payments totalling $9.738 million to 7,658 claimants. The Public Lending Right Scheme 1997, which sets out the annual rates of payment, was modified in 2016 by the Minister for the Arts based on advice from the Department of Communications and the Arts. The Public Lending Right Scheme 1997 (Modification No. 1 of 2016) increased the rate of payment for creators from $2.02 to $2.11 and for publishers from 50.5 cents to 52.75 cents for the period 2015–16. This modification is a legislative instrument under the Legislative Instruments Act 2003, satisfying the gazettal requirement through registration in the Federal Register of Legislative Instruments. Notably, this type of modification does not require a Regulatory Impact Statement, and the Legislative Instrument is compatible with human rights as recognised in international instruments.

Scope and Application

The Public Lending Right Act 1985 applies to Australian creators and publishers of books that are held in public lending libraries. The Act aims to recognise the loss of income resulting from the public lending of books and provides a legislative framework for the Public Lending Right scheme, which facilitates payments to eligible creators and publishers. The scheme’s annual rates of payment are outlined in the Public Lending Right Scheme 1997 and can be modified by the Minister for the Arts. The modification in 2016, for example, increased the rates of payment for creators and publishers. The Act applies nationally, covering the Commonwealth, states, and territories of Australia. There are no specific exclusions or thresholds mentioned in the explanatory statement, but the rates of payment could imply an implicit threshold based on the number of loans or the specific categories of creators and publishers eligible for the scheme. Subordinate instruments, such as the 1997 Scheme and its modifications, extend the application of the Act by detailing the specific rates and conditions of payment.

Key Provisions

The Public Lending Right Act 1985, as modified by the Public Lending Right Scheme 1997 (Modification No. 1 of 2016), sets the legislative framework for compensating Australian creators and publishers of books held in public lending libraries (section 5). This Act ensures that these creators and publishers receive payments to recognise the loss of income due to their works being available for public lending. In the financial year 2014–15, a total of $9.738 million was distributed among 7,658 claimants, illustrating the breadth of the scheme's impact. Under the modified Scheme, the creator rate of payment has been increased from $2.02 to $2.11 for the period 2015–16, and the publisher rate has been adjusted from 50.5 cents to 52.75 cents over the same period (section 5). This modification was made pursuant to paragraph 5(1)(b) of the Act, allowing the Minister to adjust annual rates of payment through legislative instruments. The rates were determined after considering advice from the Department of Communications and the Arts, ensuring that the changes reflect current economic conditions and the value of literary contributions. The obligations imposed by the Act and the Scheme include ensuring that eligible creators and publishers are correctly identified and that payments are made in accordance with the adjusted rates. The Act requires the Minister to periodically review and, if necessary, modify the rates of payment to keep them aligned with the economic value and the impact of public lending on the income of creators and publishers. The process of modification must be undertaken with due regard to the advice from relevant government departments and must be registered in the Federal Register of Legislative Instruments, satisfying the legislative requirement outlined in the Legislative Instruments Act 2003. The modification does not create new offences, but any breach of the provisions related to the payment of rights under the Act could lead to civil consequences, such as claims for underpayment or disputes over eligibility. There are no specified maximum penalties within the text provided, but the legislative framework suggests that non-compliance could be subject to the general legal remedies available under Australian law. The modification is designed to ensure that the scheme remains fair and effective in compensating creators and publishers, reflecting the ongoing legislative intent to support the literary community.