Public Lending Right Scheme 2016 (Modification No. 1 of 2021)

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

Legislation au F2021L00472 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

Public Lending Right Act 1985

 

Public Lending Right Scheme 2016 (Modification No. 1 of 2021)

Issued by the authority of the Minister for Communications, Urban Infrastructure, Cities and the Arts

 

Authority

The Minister makes the Public Lending Right Scheme 2016 (Modification No. 1 of 2021) (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 2019-20, payments totalling $9.152 million were made to 6,583 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 2020-21 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 $2.18 to $2.19 and the publisher rate of payment per book from 54.5 cents to 54.75 cents. These increased rates will take effect for payments made from the 2020-21 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 2021)

 

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 $2.18 per copy to $2.19 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 54.5 cents per copy to 54.75 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 2021)

 

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 2019-20, payments totalling $9.152 million were made to 6,583 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 2020-21 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 2021) (the Modification) increases the creator rate of payment per copy of book from $2.18 to $2.19 and the publisher rate of payment per copy of book from 54.5 cents to 54.75 cents. These increased rates will take effect for payments made from the 2020-21 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 address the problem of income loss experienced by Australian creators and publishers of books that are held in public lending libraries. The Act establishes the legislative framework for a Public Lending Right scheme, which recognises this income loss and provides financial compensation. The scheme operates by making payments to eligible creators and publishers based on the number of copies of their books held in public lending libraries, as determined by annual library surveys. The Minister for Communications, Urban Infrastructure, Cities and the Arts has the authority under paragraph 5(1)(b) of the Act to modify the scheme, including the rates of payment, through a legislative instrument. The Public Lending Right Scheme 2016 (Modification No. 1 of 2021) is one such modification, adjusting the rates of payment for creators and publishers to reflect the latest survey data and budget considerations, thereby ensuring that the scheme continues to meet its policy objective of compensating for income loss. The Modification, which increases the payment rates effective from the 2020-21 financial year, has been deemed compatible with human rights as it supports the protection of the material interests of authors.

Scope and Application

The Public Lending Right Act 1985 provides a legislative framework for the Public Lending Right Scheme, which aims to recognise and compensate Australian creators and publishers for the income loss resulting from their books being held in public lending libraries. The Act applies to eligible creators and publishers who have their works in public lending libraries and is administered at the Commonwealth level. The scope of the Act includes setting the rates of payment, which are adjusted periodically by the Minister for Communications, Urban Infrastructure, Cities and the Arts based on recommendations from the Office for the Arts and the Public Lending Right Committee. The most recent modification, the Public Lending Right Scheme 2016 (Modification No. 1 of 2021), increases the rates of payment for creators and publishers. These modifications are made under the authority of the Act and are registered on the Federal Register of Legislation. The changes reflect the results of annual library surveys and ensure that the payments are consistent with the available budget and the economic conditions affecting the literary industry. There are no exclusions or exemptions mentioned in the explanatory statement, and the adjustments are considered minor technical changes that do not significantly alter the existing scheme.

Key Provisions

The main operative sections of the Public Lending Right Scheme 2016 (Modification No. 1 of 2021) modify the rates of payment for eligible creators and publishers under the Public Lending Right Act 1985. Specifically, Item 2 of the Modification increases the creator's rate of payment per book from $2.18 to $2.19, while Item 3 increases the publisher's rate of payment per book from 54.5 cents to 54.75 cents. These modifications are set to take effect from the 2020-21 financial year, as stipulated in Item 4 of the Modification, which provides that the Instrument commences on the day after it is registered on the Federal Register of Legislation. The Act imposes several obligations and requirements on the parties it governs. Primarily, it requires the Minister for Communications, Urban Infrastructure, Cities and the Arts to adjust the rates of payment for eligible creators and publishers annually, taking into account the advice from the Office for the Arts and the Public Lending Right Committee, as well as the results of library surveys. Additionally, the library surveys conducted annually must provide the estimated number of books held in Australian public lending libraries. The Office for the Arts within the Department of Infrastructure, Transport, Regional Development and Communications is responsible for reviewing these rates and ensuring that they align with the available budget. The Modification does not explicitly detail offences, penalties, or civil/criminal consequences for breach. However, under the Public Lending Right Act 1985, failure to comply with the requirements of the Act could potentially lead to legal repercussions. The Act itself does not specify maximum penalties, but breaches of legislative instruments in general may be subject to civil or criminal penalties depending on the severity of the breach. It is also worth noting that the Modification is compatible with human rights, specifically the right to benefit from the protection of the moral and material interests in literary productions, as affirmed in Article 15(1)(c) of the International Covenant on Economic, Social and Cultural Rights (ICESCR). This compatibility underscores the importance of ensuring that creators and publishers are fairly compensated for their works held in public lending libraries.

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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.