Public Lending Right Scheme 2016 (Modification No. 1 of 2019)

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2019L00427 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Public Lending Right Act 1985

 

Public Lending Right Scheme 2016 (Modification No. 1 of 2019)

Issued by the authority of the Minister for Communications and the Arts

 

Authority

The Minister has made the Public Lending Right Scheme 2016 (Modification No. 1 of 2019) (the Modification) under paragraph 5(1)(b) of the Public Lending Right Act 1985 (the Act).

 

Paragraph 5(1)(b) of the Act provides that the Minister may, by notice published in the Gazette, modify the scheme created under the Act for and in relation to the making of payments to persons in respect of books.

 

Purpose and operation

The Act provides the legislative framework for a Public Lending Right scheme to, amongst other things, recognise the loss of income by Australian creators and publishers of books held in public lending libraries. In 2017-18, payments totalling $10.078 million were made to 7,309 claimants.

 

The Public Lending Right Scheme 2016 (the Scheme) provides for the rates of payment to eligible creators and publishers. The amount payable to eligible creators and publishers annually is the applicable Public Lending Right rate of payment, mentioned in subsections 14(2) and 15(2) respectively of the Scheme, multiplied by the estimated number of copies of the book as determined by a library survey.

 

These rates may be adjusted through a modification to the Scheme made by the Minister pursuant to paragraph 5(1)(b) of the Act. The Department of Communications and the Arts reviews the rates annually, taking into consideration the results of library surveys and the available budget. The library surveys, also conducted annually, provide the estimated number of books held in Australian public lending libraries. The results of the 2018-19 survey show that an increase in payment rates is appropriate. The payment rates have not been increased since 2016.

 

Taking into account the advice of the Department of Communications and the Arts and the advice of the Public Lending Right Committee, the Minister is modifying the rates of payment.

 

The Modification increases the creator rate of payment per book from $2.11 to $2.14 and the publisher rate of payment per book from 52.75 cents to 53.5 cents. These increased rates will take effect for payments made from the 2018-19 financial year.

 

The Modification is a legislative instrument for the purposes of the Legislation Act 2003 (Legislation Act). The gazettal requirement in subsection 5(1) of the Legislation Act is taken to be satisfied if the instrument is registered in the Federal Register of Legislation (subsection 56(1) of the Legislation Act).

 

The notes on the provisions of the Modification are set out in Attachment A.

 

Consultation

The Public Lending Rights Committee, established under section 7 of the Act (comprising members of the library and publishing sectors, an author and copyright representative), was consulted. No further consultation was undertaken as the changes to the rates of payment are of a minor technical nature and do not substantially alter the current arrangements under the Scheme.

 

Regulation Impact Statement

The Office of Best Practice Regulation (OBPR) has advised that, as the modification makes amendments with no regulatory impact, a Regulatory Impact Statement is not required (OBPR ID: 21121).

 

Statement of Compatibility with Human Rights

A statement of compatibility with human rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out in Attachment B.


Attachment A

 

Notes on the Public Lending Right Scheme 2016 (Modification No. 1 of 2019)

Part 1 - Preliminary

Item 1  Modification

Item 1 provides that the Public Lending Right Scheme 2016 (the Scheme) is to be modified as set out in the Notice.

Item 2  Subsection 14(2)

Item 2 provides that subsection 14(2) of the Scheme is amended to increase the creators’ Public Lending Right rate of payment from $2.11 per copy to $2.14 per copy.

Item 3  Subsection 15(2)

Item 3 provides that subsection 15(2) of the Scheme is amended to increase the publishers’ Public Lending Right rate of payment from 52.75 cents per copy to 53.5 cents per copy.


Attachment B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Public Lending Right Scheme 2016 (Modification No. 1 of 2019)

 

This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Modification

The Public Lending Right Act 1985 (the Act) provides the legislative framework for a Public Lending Right scheme to, amongst other things, recognise the loss of income by Australian creators and publishers of books held in public lending libraries. In 2017-18, payments totalling $10.078 million were made to 7,309 claimants.

 

The Public Lending Right Scheme 2016 (the Scheme) provides for a range of matters, including the rates of payment to eligible creators and publishers. The amount payable to eligible creators and eligible publishers annually is the applicable Public Lending Right rate of payment, mentioned in subsections 14(2) and 15(2) respectively of the Scheme, multiplied by the estimated number of copies of the book as determined by a library survey.

 

These rates may be adjusted through a modification to the Scheme made by the Minister pursuant to paragraph 5(1)(b) of the Act. The Department of Communications and the Arts reviews the rates annually, taking into consideration the results of library surveys and the available budget. The library surveys, also conducted annually, provide the estimated number of books held in Australian public lending libraries. The results of the 2018-19 survey show that an increase in payment rates is appropriate. The payment rates have not been increased since 2016.

 

The Public Lending Right Scheme 2016 (Modification No. 1 of 2019) (the Modification) increases the creator rate of payment per copy of book from $2.11 to $2.14 and the publisher rate of payment per copy of book from 52.75 cents to 53.5 cents. These increased rates will take effect for payments made from the 2018-19 financial year.

 

Human rights implications

The Modification engages the following right:

  • the right to benefit from the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he or she is the author in Article 15(1)(c) of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

Article 15(1)(c) of the ICESCR enables authors of scientific, literary or artistic products to benefit from the protection of their moral and material interests in these products. This right is important for the purposes of encouraging authors to create work, with the assurance that their moral and material interests in their products will be protected.

The overarching objective of the Scheme is ensuring remuneration for loss of income by creators and publishers of books held in public lending libraries. The Modification is an upward adjustment of the remuneration paid to creators and publishers of works that are held in public lending libraries in Australia.

The impact of the Modification is to maintain and promote the objective of the Scheme by ensuring that the rate of payment is consistent with library surveys and the available budget.

 

Conclusion

The Modification is compatible with human rights because it promotes the protection of the material interests of authors of books (literary products).

 

Overview

The Public Lending Right Act 1985 (the Act) was enacted to establish a legislative framework for a Public Lending Right (PLR) scheme, aimed at recognising the loss of income by Australian creators and publishers of books held in public lending libraries. The Act provides for payments to eligible creators and publishers based on the number of copies of their books held in public lending libraries, as determined by annual surveys. The 2019 Modification, made under paragraph 5(1)(b) of the Act by the Minister for Communications and the Arts, adjusts the rates of payment to these creators and publishers. This modification responds to the need for updated payment rates based on the latest library surveys and budget considerations, ensuring that the scheme continues to fairly compensate creators and publishers for their works held in public libraries. The 2018-19 survey results indicated an appropriate increase in payment rates, which had not been adjusted since 2016. The Public Lending Right Scheme 2016 (Modification No. 1 of 2019) (the Modification) increases the annual creator rate of payment per book from $2.11 to $2.14 and the publisher rate from 52.75 cents to 53.5 cents, effective from the 2018-19 financial year. This adjustment aims to align the remuneration with current library holdings and budgetary constraints, thereby supporting the scheme's objective of providing fair compensation. The Modification also ensures compatibility with human rights by upholding the right of authors to benefit from their literary productions, as outlined in Article 15(1)(c) of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

Scope and Application

The Public Lending Right Act 1985 provides a legislative framework for a scheme that recognises the loss of income by Australian creators and publishers of books held in public lending libraries. The Act applies to eligible creators and publishers, who are compensated for the use of their works in public lending libraries. The scope of the Act extends nationally across Australia, encompassing all public lending libraries within the Commonwealth. The Act’s application is administered through the Public Lending Right Scheme 2016, which the Minister for Communications and the Arts can modify to adjust the rates of payment. The latest modification, the Public Lending Right Scheme 2016 (Modification No. 1 of 2019), increases the rates of payment for eligible creators and publishers, reflecting the results of annual library surveys and budget considerations. The Modification specifies that the creator rate of payment per book is increased from $2.11 to $2.14, and the publisher rate of payment per book from 52.75 cents to 53.5 cents, effective from the 2018-19 financial year. The Modification, which is a legislative instrument under the Legislation Act 2003, ensures that the scheme remains aligned with the human rights and freedoms recognised in international instruments, particularly the right to benefit from the protection of moral and material interests in literary productions as outlined in Article 15(1)(c) of the International Covenant on Economic, Social and Cultural Rights. This right is critical in encouraging authors to create, assuring them of the protection of their interests. The Modification does not introduce any significant regulatory impacts, as advised by the Office of Best Practice Regulation. The legislative instrument, upon registration in the Federal Register of Legislation, satisfies the gazettal requirement stipulated in the Legislation Act.

Key Provisions

The Public Lending Right Scheme 2016 (Modification No. 1 of 2019) (the Modification) amends the Public Lending Right Scheme 2016 (the Scheme) to adjust the rates of payment for eligible creators and publishers (subsections 14(2) and 15(2)). Specifically, it increases the creator rate of payment per book from $2.11 to $2.14 and the publisher rate of payment per book from 52.75 cents to 53.5 cents (Items 2 and 3). These changes will be effective for payments made from the 2018-19 financial year. The Scheme, established under the Public Lending Right Act 1985 (the Act), provides the framework for compensating creators and publishers for the loss of income due to the public lending of their books. The Modification is a response to the results of the 2018-19 library survey, which indicated that an increase in payment rates was necessary. The Modification imposes specific obligations on the relevant parties, including the Department of Communications and the Arts, which is responsible for reviewing and adjusting the payment rates annually (subsections 14(2) and 15(2)). The library surveys, also conducted annually, provide the necessary data on the estimated number of books held in Australian public lending libraries. Eligible creators and publishers must comply with the updated rates when claiming payments under the Scheme. The Modification is intended to ensure that the remuneration remains consistent with the findings of the library surveys and the available budget. While the Modification does not establish new offences, non-compliance with the updated payment rates or failure to correctly claim payments under the Scheme could lead to civil consequences. For instance, incorrect claims may result in overpayments or underpayments, requiring adjustments and potential repayments. Additionally, the Minister retains the authority to take enforcement actions against non-compliant entities under the Act. The primary consequence of non-compliance is financial, as it affects the rightful compensation for creators and publishers. The Modification aligns with the human rights recognised under the International Covenant on Economic, Social and Cultural Rights (ICESCR), particularly Article 15(1)(c), which safeguards the moral and material interests of authors. By adjusting the payment rates, the Modification supports the protection of these interests, ensuring that creators and publishers receive fair remuneration for their works held in public lending libraries. This adjustment is crucial for maintaining the incentive for authors to produce literary works, knowing that their rights and interests will be protected. The Modification thus promotes the overarching objective of the Scheme by ensuring consistent and appropriate remuneration.

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Area of Law
Intellectual Property Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Repeal & Amendment
Payment Adjustments

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.