Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I rise in support of the Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025, a vital piece of legislation that will ensure Australian consumers are placed at the heart of the telecommunications industry. This bill is about fairness, accountability and consumer protection. It's about making sure that, when Australians sign up for a phone and internet services, they are treated with the respect and care they deserve. I really think it's great the minister is here, as I know she has been paying strong attention to this debate throughout. I really thank her for her leadership in bringing these important consumer protections to our parliament.

We all know how crucial telecommunications services are in our modern world. Whether it's a parent trying to connect with their child, a small-business owner running their company or someone in a remote area depending on the internet for essential services, our lives are built around reliable connectivity. For too long consumers have been left behind, with some telcos putting profits before people. Right now too many Australians are struggling with their telecommunications services. Complaints to the Telecommunications Industry Ombudsman rose 13 per cent in the last quarter of 2024. Small-business complaints also increased, and service outages have left thousands of Australians frustrated and disconnected. We've also seen serious issues in the industry such as the Optus scandal, when vulnerable Australians, many of them from First Nations communities and culturally diverse communities across Australia, were signed up for services that they did not need and then were chased for debts they should never have owed.

Consumers are fed up. One regional customer recently told the Australian Communications Consumer Action Network, 'We rely on our internet for everything: paying bills, schoolwork, even medical appointments. But, when something goes wrong, it takes forever to fix and we're left in the dark.' Another customer, a small-business owner, said: 'My business depends on phone and internet services, but, when I had a major outage, I got no help from my provider. It cost me thousands in lost revenue, and there was nothing I could do.' For too long telcos have faced penalties that are simply too low and were not the deterrent we would want to see for that kind of bad behaviour.

Companies simply absorbed them as a cost of doing business. Companies that fail to follow the rules must be held to account, and this bill ensures that they will be. This bill will introduce stronger consumer protections and give regulators the power that they need to take immediate action when telcos break the law. It does this in four key ways. Firstly, it creates a carriage service provider registration scheme. This will increase transparency by ensuring that only responsible telco providers operate in the market. If a provider poses an unacceptable risk to consumers, the Australian Communications and Media Authority will have the power to stop them from operating. This means that rogue operators who exploit customers will no longer be allowed to fly under the radar.

Secondly, we're making industry codes directly enforceable. Right now, when a telco breaks consumer protection rules, the ACMA must first issue a direction to comply before they can take action. This unnecessary delay means that consumer harm can continue, while bad actors get a second chance. Under this bill the ACMA will be able to immediately enforce industry codes, protecting Australians from further harm. This reform will incentivise compliance and ensure that telcos take their obligations to consumers seriously. Industry codes, which include requirements on customer service, billing practices and complaint resolution, will now have real weight behind them.

The third measure in this bill introduces significantly increased penalties. Currently, the maximum penalty for breaches of consumer safeguards is only $250,000, which for some telcos would be pocket change. This bill will raise that to $10 million or up to 30 per cent of the company's turnover, ensuring that penalties are severe enough to make sure compliance is heeded. If a company knowingly profits from non-compliance, they could face fines three times the value of the benefit they gain from breaking the rules. This aligns with penalty frameworks in sectors like energy, banking and Australian consumer law, ensuring that telcos are held to the same high standards.

Finally, this bill is empowering the Minister for Communications. This bill clarifies the minister's authority to increase penalties issued by the ACMA, ensuring stronger consequences for breaches of key telecommunications rules. This means that future governments can act quickly in response to emerging consumer risks.

This bill is just one part of Labor's broader plan to strengthen protections for Australian consumers. We've introduced the Telecommunications Financial Hardship Industry Standard, which makes it mandatory for telcos to prioritise keeping customers connected and offer real assistance, like payment plans for those struggling to pay their bills. We've created the domestic family and sexual violence industry standard, ensuring that telcos provide safe and secure communication options for survivors, including prohibiting perpetrators from interfering with their accounts. We're working to revise the Telecommunications Consumer Protections Code, ensuring stronger standards on responsible selling, consumer rights and complaint handling. We're improving telecommunications accessibility, investing in the National Relay Service and working with industry to enhance services for Australians with disabilities. We're making sure that no Australian, regardless of their circumstances, is left behind when it comes to accessing reliable, high-quality telecommunication services.

The Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025 is about ensuring that the telco industry serves Australians, and not the other way around. This bill has received strong support from consumer advocates, regulators and industry groups alike. The Australian Communications Consumer Action Network, the Telecommunications Industry Ombudsman and the ACMA all agree that these changes are necessary, overdue and will make a real difference in people's lives. ACCAN chief executive officer, Carol Bennett, hailed the strengthening of the act as a major win for consumers. She said:

These reforms will promote increased accountability, transparency and compliance within the telecommunications industry and contribute towards improving diminishing consumer trust in telcos.

The Australian Government's reforms address longstanding consumer concerns about the relatively weak regulatory settings of the telco industry and will go a long way towards improving trust in the telecommunications industry.

I also note that Communications Alliance CEO, Luke Coleman, welcomed the announcement. I appreciate their congratulations for the government's attention here. The Communications Alliance has consistently called for stronger enforcement powers for the ACMA, and they welcomed this announcement to enhance consumer protections in the telco industry.

Labor believes in fairness, we believe in accountability, and we believe that no telco should get away with harming consumers for the sake of their bottom line. To those who have suffered from poor telco service, from unfair treatment, from outrageous penalties and frustrating delays, this bill is for you. It is for the family who needs reliable internet for their child's education. It is for the small business owner who cannot afford to lose another day of work due to service failures. It is for every Australian, as every Australian deserves to be treated with respect, and I urge all members in this parliament to support this bill and to stand with the millions of Australians who rely on their phone and internet services every day.

Michelle Rowland (Greenway, Australian Labor Party, Minister for Communications) Share this | Link to this | Hansard source

I thank members who contributed to consideration of the Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025. The significant reforms included in this bill will better equip the Australian Communications and Media Authority with the tools and powers it needs to protect telco consumers and hold providers to account. This bill is another way the Albanese government is putting consumers at the centre of the telco industry, recognising the importance of quality services for all Australians.

This bill establishes a carriage service provider registration scheme to increase visibility of providers operating in the market, especially telecommunications retailers. It will enable the ACMA to undertake more proactive education and compliance work with providers and ultimately empower the ACMA to stop them operating in the market where they have been found to pose unacceptable risk to consumers or have caused significant consumer harm.

This bill will make compliance with industry codes mandatory and directly enforceable. This will allow the ACMA to take direct and immediate enforcement action against telecommunications providers that have breached their obligations to customers. This bill will also increase maximum penalties for breaches of industry codes and standards under the act from $250,000 to approximately $10 million, bringing them in line with those for breaches of service provider determinations under the act. This will also better align telecommunications penalties with other sectors like energy and banking. Additional changes will allow for the courts to determine penalty amounts based on financial turnover of the provider and the scale of the breach, allowing for penalties in excess of $10 million in certain circumstances.

Reforms to infringement notices will clarify the application of the framework, enabling the government to increase penalty amounts for any breach where the ACMA can issue an infringement notice. This includes breaches of industry codes and standards relating to consumer protections. The reforms will also allow for the scaling of infringement notice penalties depending on the size of the provider—for example, larger penalties for larger providers and smaller penalties for smaller providers.

The Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025 is about delivering a stronger, better targeted and more equitable compliance and enforcement regime for the telecommunications sector. The Albanese government has listened to feedback from industry, regulators, the Telecommunications Industry Ombudsman and consumer advocates to develop these reforms. Most importantly, we've listened to Australians. These reforms will ensure the right settings are in place to incentivise telecommunications service providers to comply with the law and provide quality services to consumers. They reflect the Albanese government's commitment to making sure Australians are appropriately protected and supported in their interactions with telecommunications service providers. I call on members to support the bill.

Question agreed to.

Bill read a second time.