Communications Update April 2007 – Legislation

Broadcasting Services Amendment Act 2006 Schedule 2 commences

Schedule 2 of the Broadcasting Services Amendment (Media Ownership) Act 2006 commenced on 4 April 2007. Schedule 2 implements the government’s reforms to Australia’s media ownership laws.

Schedule 2 removes the following from the Broadcasting Services Act 1992:

• foreign ownership restrictions on commercial and subscription television interests, and
• most cross-media ownership restrictions on commercial radio and television licences and associated newspapers.

Schedule 2 implements the following new cross-media ownership regulations: 

• no new transactions can proceed unless a minimum of five independent media operations or groups are maintained in metropolitan markets and four in regional markets (unless a lesser number were present before the transaction), and
• no more than two of the three regulated platforms (commercial radio, commercial television and associated newspapers) can be controlled by the same person/organisation in any one licence area.

Australia’s ‘reach rules’ remain unchanged. A person/organisation cannot control:

• more than one commercial television licence or two commercial radio licences in any one licence area, or
• commercial television licences reaching an audience in excess of 75 per cent of the Australian population.

The Australian Communications and Media Authority (ACMA) will be responsible for administrating a Register of Controlled Media Groups.

Schedule 2 also requires ACMA to impose the following licence conditions:

• commercial television licensees must (from 1 January 2008) broadcast a minimum level of ‘material of local significance’
• regional commercial radio licensees must maintain existing levels of ‘local presence’ if it is subject to a change in ownership or if it becomes part of a cross-media group, and
• regional commercial radio licensees must (from 1 January 2008) broadcast a minimum level of ‘material of local significance’ between 6am and 6pm on business days.

ACMA’s enforcement powers have been further increased to provide more flexible mechanisms for addressing breaches.

For further information on these changes please visit Senator Coonan's website.

For more information please contact

Name : Duncan Giles
Title : Special Counsel
Office : Sydney
Phone : +61 2 9225 5954
Fax : +61 2 9322 4000
Email : duncan.giles@freehills.com