Public Lending Right Scheme 2016 (Modification No. 1 of 2020)

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

Legislation au F2020L00558 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

Public Lending Right Act 1985

 

Public Lending Right Scheme 2016 (Modification No. 1 of 2020)

Made by the authority of the Minister for Communications, Cyber Safety and the Arts

 

Authority

The Minister makes the Public Lending Right Scheme 2016 (Modification No. 1 of 2020) (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.

 

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

 

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 2018-19, payments totalling $9.374 million were made to 6,879 eligible 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 Office for the Arts within the Department of Infrastructure, Transport, Regional Development and Communications 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.

 

Taking into account the advice of the Office for the Arts (as informed by the results of the 2019-20 library survey), and the advice of the Public Lending Right Committee, the Minister has decided to modify the rates of payment.

 

The Modification increases the creator rate of payment per book from $2.14 to $2.18 and the publisher rate of payment per book from 53.5 cents to 54.5 cents. These increased rates will take effect for payments made from the 2019-20 financial year.

 

The Modification is a legislative instrument for the purposes of the Legislation Act.

 

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

 

Consultation

The Public Lending Right 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 has no regulatory impact, a Regulatory Impact Statement is not required (OBPR ID: 12961).

 

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 2020)

 

Item 1  Modification

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

Item 2  Subsection 14(2)

Item 2 provides that subsection 14(2) of the Scheme is modified to increase the creators’ Public Lending Right rate of payment from $2.14 per copy to $2.18 per copy.

Item 3  Subsection 15(2)

Item 3 provides that subsection 15(2) of the Scheme is modified to increase the publishers’ Public Lending Right rate of payment from 53.5 cents per copy to 54.5 cents per copy.

Item 4   Commencement

Item 4 provides that the Instrument commences on the day after it is registered on the Federal Register of Legislation.


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 2020)

 

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 2018-19, payments totalling $9.374 million were made to 6,879 eligible 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 Office for the Arts, within the Department of Infrastructure, Transport, Regional Development and Communications, 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. Taking into account the advice of the Office for the Arts (as informed by the results of the 2019-20 library survey), and the advice of the Public Lending Right Committee, the Minister has decided to modify the payment rates.

 

The Public Lending Right Scheme 2016 (Modification No. 1 of 2020) (the Modification) increases the creator rate of payment per copy of book from $2.14 to $2.18 and the publisher rate of payment per copy of book from 53.5 cents to 54.5 cents. These increased rates will take effect for payments made from the 2019-20 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 was enacted to address the loss of income faced by Australian creators and publishers of books held in public lending libraries. The Act provides the legislative framework for a Public Lending Right (PLR) scheme that recognises this loss and facilitates payments to eligible creators and publishers. In 2018-19, the scheme facilitated payments totalling $9.374 million to 6,879 eligible claimants. The scheme's rates of payment are adjusted periodically by the Minister for Communications, Cyber Safety and the Arts, who is authorised under the Act to modify the scheme as necessary. This process was followed with the introduction of the Public Lending Right Scheme 2016 (Modification No. 1 of 2020), which increased the PLR rate of payment per book from $2.14 to $2.18 for creators and from 53.5 cents to 54.5 cents for publishers, effective from the 2019-20 financial year. This modification was made following advice from the Office for the Arts and the Public Lending Right Committee, and it was determined that no further consultation was necessary due to the minor technical nature of the changes.

Scope and Application

The Public Lending Right Act 1985 establishes a legislative framework aimed at recognising the loss of income for Australian creators and publishers of books held in public lending libraries. This Act applies to eligible creators and publishers, providing them with financial compensation for the use of their works in these libraries. The Public Lending Right Scheme 2016, which operationalises the Act, details the rates of payment, which are determined based on annual library surveys and budget considerations, and can be adjusted through modifications made by the Minister. The scheme applies nationally across Australia, and its modifications are registered on the Federal Register of Legislation, thereby satisfying the legislative requirements. Notably, the Modification No. 1 of 2020, which was made under the authority of the Minister for Communications, Cyber Safety and the Arts, increased the payment rates for creators and publishers, reflecting the outcomes of the 2019-20 library survey. This modification ensures that the scheme continues to provide fair compensation in line with the economic realities and the available budget, thereby maintaining its purpose of protecting the material interests of authors and publishers. The Public Lending Right Scheme 2016 (Modification No. 1 of 2020) specifically increases the rate of payment per book from $2.14 to $2.18 for creators and from 53.5 cents to 54.5 cents for publishers, effective from the 2019-20 financial year. This adjustment was made to align with the findings of the library survey and budget constraints, ensuring that the payments remain reflective of the actual usage and economic conditions. The scheme operates under the oversight of the Office for the Arts, which provides essential advice based on survey data and budget reviews. The Modification is designed to maintain the integrity and effectiveness of the scheme, ensuring that it continues to serve its primary objective of compensating creators and publishers for the use of their works in public libraries. The scheme does not extend or restrict its application through subordinate instruments beyond what is specified in the Act and the Scheme itself.

Key Provisions

The Public Lending Right Scheme 2016 (Modification No. 1 of 2020) modifies the rates of payment for eligible creators and publishers under the Public Lending Right Act 1985 (the Act). Specifically, Item 2 increases the creators’ Public Lending Right rate of payment from $2.14 per copy to $2.18 per copy, and Item 3 increases the publishers’ Public Lending Right rate of payment from 53.5 cents per copy to 54.5 cents per copy (Items 2 and 3). These changes will take effect for payments made from the 2019-20 financial year (Item 4). The Modification imposes obligations on the Minister, the Office for the Arts, and the Public Lending Right Committee. The Minister is responsible for making modifications to the Scheme under paragraph 5(1)(b) of the Act and must publish the modifications in the Gazette or register them as a legislative instrument on the Federal Register of Legislation. The Office for the Arts reviews the rates annually, considering library survey results and the available budget, while the Public Lending Right Committee advises the Minister on these modifications. The Modification itself does not create new obligations but modifies existing ones by adjusting the rates of payment for eligible creators and publishers. There are no specific offences or penalties outlined in the Modification for breach of the Act or the Scheme. However, the Act itself may contain provisions that address breaches or non-compliance. The Modification is a legislative instrument under the Legislation Act 2003 and, as such, is subject to the legislative processes outlined in that Act. Any breaches of the Act or the Scheme would be dealt with in accordance with the existing provisions of the Act and any applicable regulations or guidelines.

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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.