House debates

Thursday, 27 March 2025

Bills

Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025; Second Reading

10:31 am

Photo of Zaneta MascarenhasZaneta Mascarenhas (Swan, Australian Labor Party) Share this | Hansard source

This demonstrates that we are a government of action—a government of building a better future. This includes securing our telecommunications as a key part of this future. It is one example of how, every day in everyday life, we are making a lifeline, and we need to secure it. The Labor Party has a big plan for Australia, and every single one of these components feeds into this plan, because we want to make sure that people stay connected, and securing our telecommunications is a key part of that future. It's part of everyday life. It's a lifeline, and we need to secure it.

This bill marks a significant step forward in protecting Australians who rely on telecommunications services. These services are essential in our daily lives for work, education, connecting with loved ones and staying informed. In the digital age, connection is not a luxury; it is a necessity. With that comes a responsibility to ensure that businesses are operating fairly and in the best interests of consumers. This legislation will deliver vital reforms to strengthen the enforcement powers of the Australian Communications and Media Authority, ACMA, ensuring that it can act quickly and decisively. It also delivers reforms that introduce serious consequences for failures. For too long we have seen examples of telcos treating penalties as a cost of doing business, deciding that paying the fine is easier than fixing the issue. Frankly, this approach is unacceptable, and this government is saying, 'Enough is enough.'

This bill puts an end to the outdated and ineffective two-step enforcement process. As it stands, when a telco breaches its obligations under the industry code, ACMA must first issue a direction to comply. Only if the telco then fails to comply with that direction can ACMA take further enforcement action, even if the initial breach was serious or caused widespread consumer harm. This delay undermines consumer protections and weakens the authority of the regulator. Under the proposed legislation, ACMA will be able to take action when providers breach the code. This is a simple but critical change. It also sends a clear message to telcos that they have a responsibility to meet their obligations to consumers and, if they fail, they will be held to account.

The bill also introduces significantly stronger penalties for breaches of industry codes and standards. The current maximum general penalty, which dates from 1997, is $250,000. This will be increased to $10 million. But the reforms go further. In cases where the benefit obtained from offending conduct is higher or where the company turnover is higher, the new framework will allow for even greater fines. Penalties may now be linked to the value of the benefit received from the breach or the overall turnover of the telco. This brings penalties in the telecommunications sector into line with penalties in energy, banking and consumer law. This alignment is important. Consumers should have the same level of protection and regulatory oversight with regard to telco services as they would with regard to their electricity provider. The days of telcos operating in a regulatory grey zone are over. This bill enables the government to increase penalties that ACMA can issue across all applicable breaches. These include breaches of consumer protection rules. This is about the tools to match the scale and seriousness of relevant breaches.

Another major reform of this bill is the creation of the carrier service provider, CSP, registration scheme. This is a long overdue measure to increase transparency and visibility in the market, particularly when it comes to telecommunication retailers, who often sit between the customer and infrastructure providers. Under the new scheme, CSPs will be required to register with ACMA. This will not only improve oversight of those who are operating in the market but also give the regulator the ability to intervene where necessary. If a CSP is found to pose an unacceptable risk to consumers or has caused harm, ACMA will have the power to stop it from operating. This is about cleaning up the industry. It's all about making sure that telcos—whether they're large or small, retailers or wholesalers—are playing by the same rules and are subject to the same level of scrutiny.

These reforms are substantial. They are practical and necessary. They better equip ACMA to do its job of protecting consumers, upholding standards and taking strong action when telcos fall short. More than that, these changes shift the incentive structure in the industry. They push providers towards a culture of compliance, rather than damage control. They encourage telcos to educate themselves and their staff about their obligations. They encourage compliance. This is about putting consumers first; this is what it's fundamentally about. They also help create a telco sector that is fairer, more accountable and more focused on the needs of Australians, because, at the end of the day, this is what it is all about—putting consumers first.

Australians shouldn't have to fight for fair treatment when it comes to dealing with a telco. They shouldn't have to spend hours on hold trying to resolve an issue that should never have occurred in the first place. They should not have to wonder whether there provider is operating responsibly or ethically. With this bill, we are saying that the status quo is simply not good enough. What we're saying is that consumers deserve better. We're ensuring that the rules and the enforcement powers behind them reflect that reality.

This legislation is just one part of the government's broader efforts to strengthen the consumer voice in telecommunications and to modernise the regulatory framework that governs this critical industry. It follows the clear principle that, when services are essential, protections must be strong. It follows the clear objective to build a telecommunications sector that works for the people it serves, not just for profit margins or shareholders. We are taking action to stand up for fairness for the millions of Australians who rely on these services every single today. We are taking action to ensure the telecommunications sector is one that puts consumers and the Australian public at its core, where it always should have been.

Labor support the Australian public, we support consumers and we are committed to protecting consumers. I commend the Minister for Communications for bringing forward this important legislation. I commend the government for its ongoing commitment to protecting consumers. I urge all members of the House to support this bill.

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