Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

RADIOCOMMUNICATIONS LEGISLATION AMENDMENT (REFORM AND MODERNISATION) BILL 2020

Radiofrequency spectrum is a vital resource which underpins many aspects of Australia's digital economy, such as the operation of fixed and mobile wireless communication networks. It is essential that the legislation governing the management of that spectrum is flexible and effective.

With markets and technology having changed markedly since the current legislative framework took effect, there is a clear need to update that framework.

The Radiocommunications Legislation Amendment (Reform and Modernisation) Bill 2020, which I introduce here today, will modernise the management of spectrum and radiocommunications in Australia.

A lot has changed since the Radiocommunications Act 1992 was first introduced. For example, when the Act was introduced in 1992, a typical equipment supply chain was from manufacturer, to retailer, to customer. Today, shopping on the internet means that modern supply chains are more diverse and complex making it more difficult to identify and place requirements on different parties in a supply chain and to hold those parties to account.

The processes in the Act for allocating and re-allocating spectrum, licensing and renewal can be significantly improved, meaning less red tape. Spectrum not being allocated quickly and easily imposes unnecessary costs on both industry and government. It slows the pace of innovation being driven by emerging technology and the enthusiasm of the sector to make better, more creative and productive use of the spectrum.

The Government's 2015 Spectrum Review highlighted the limitations of the current framework and looked to reform the way spectrum is managed. Consultation on an initial draft Bill was undertaken in in 2017. When I became Minister, I considered the outcomes of this consultation process, and I listened to the concerns of stakeholders around the costs of transition to a new Act to regulate spectrum. I concluded that the best way to achieve effective reform was through a series of targeted amendments. Following this, further stakeholder consultation occurred in June and July this year, with stakeholders indicating broad support for the Bill that I am introducing today. The proposed amendments in this Bill are in line with the original recommendations of the Spectrum Review and take into account the feedback received from stakeholders.

The amendments will clarify the object of the Act and streamline spectrum allocation and reallocation processes. They will remove unnecessary prescription and legislative barriers, add flexibility, and more clearly delineate the roles of the Minister and the regulator in spectrum allocation processes.

Amendments include:

I will now provide a brief overview of the proposed reforms of the Bill. In Schedule 1 of the Bill, the Object of the Act has been streamlined so that the intention of the Act is clear and the long-term public interest is promoted. In addition, issues such as public safety and defence have been made more prominent to further support the national interest.

Schedule 2 of the Bill introduces two new means for clarifying the roles and responsibilities of the Minister in setting government policy and the regulator in implementing that policy. These are Ministerial policy statements and the annual work program. Ministerial policy statements allow the Minister to provide ACMA with policy guidance or to convey government expectations and strategic priorities for ACMA's spectrum management functions. ACMA will be required to produce an annual work program, with the aim of giving more and better information to users and the market. Importantly, the annual work program will be prepared in consultation with stakeholders and ACMA will be required to report back on its performance in its annual report. This builds on the work that ACMA currently undertakes through the annual development and publication of its Five Year Spectrum Outlook.

Schedule 3 of the Bill is focussed on licencing and associated processes. Through this schedule the maximum licence terms for apparatus and spectrum licences is extended to 20 years. To provide greater assurance to licensees, renewal statements will be introduced for spectrum licence and complex apparatus licences. This will make clear the requirements for any further licence. This, in turn, will assist licensees to make long term planning decisions. Where a licence is proposed to be renewed for a period of 10 years or longer, ACMA must be satisfied that the issue of the licence is in the public interest. As part of the schedule, the scope of responsibility for ACMA in the allocation and re-allocation of spectrum is broadened, in line with the intention to devolve more responsibilities to ACMA while enabling the Minister to provide policy guidance. ACMA is granted the power to set allocation limits to promote competition and to make spectrum re-allocation declarations to promote efficient planning and use of spectrum bands.

Schedule 4 enables ACMA to regulate equipment through statutory rules that prescribe technical standards, record keeping requirements and labelling obligations. These rules will be imposed from the point of supply, so an ordinary user can operate a radiocommunications device with confidence that the device complies with a spectrum authorisation or licence. The Bill will introduce civil penalties for breaches of equipment rules, as well as infringement notices for non-compliant users. The Schedule gives ACMA the power to make interim and permanent equipment bans backed up with significant criminal and civil penalties.

Schedule 5 expands the powers of accredited persons and is intended to provide ACMA the flexibility to broaden the scope of the existing accreditation powers. This would allow ACMA to devolve certain kinds of administrative or technical work to qualified individuals. This gives ACMA greater flexibility to align resources with priority outcomes.

Schedule 6 introduces a more simplified and streamlined set of compliance and enforcement powers. This means ACMA takes enforcement action that is proportionate to the seriousness of the breach. The amendments also include a new civil penalty provision that provides that a person must not engage in conduct that results in substantial interference, substantial disruption or substantial disturbance to radiocommunications within Australia (or between a place in Australia and a place outside Australia).

Schedule 7 provides targeted information gathering powers to enable ACMA to require persons to provide information about unlawful possession of devices or compliance or non-compliance with licence conditions. This is relevant to ACMA's administration of various parts of the Act, which have to do with planning, licensing (including re-issue and renewal), interference management and compliance.

Schedule 8 gives ACMA powers to grant certain activities or persons with exemption from compliance with parts of the Act and, amongst other measures, gives ACMA authority to use computer assisted decision making, particularly in the renewal of licences. These types of improvements will provide greater decision-making certainty to the sector and reduce unnecessary regulatory burden.

Schedule 9 of the Bill repeals the datacasting transmitter licence framework. This licencing framework has not been used to date. Schedule 10 repeals ACMA's power to hold a public inquiries about radiocommunications which has also not been used.

In summary, this Bill provides a clear reform pathway to modernise our spectrum management framework, which will deliver benefits to spectrum users by cutting red tape. It provides a more flexible framework, and allows a longer-term investment horizon, to allow industry to better adapt to future innovations and changing demand for spectrum, including the rollout of future generation wireless technology.

RADIOCOMMUNICATIONS (RECEIVER LICENCE TAX) AMENDMENT BILL 2020

As part of the Government's reform to spectrum management, today I am also introducing this Bill, the Radiocommunications (Receiver Licence Tax) Amendment Bill 2020.

This Bill is a companion Bill to the Radiocommunications Legislation Amendment (Reform and Modernisation) Bill 2020. That Bill extends the maximum licence terms for apparatus licences (including receiver licences) and spectrum licences to 20 years.

As a consequence of those amendments, this Bill seeks to align some of the arrangements for the payments licensees make for the value of the spectrum that they use under their licences. The arrangements for spectrum licensees include paying a spectrum access charge at a time specified by the Australian Communications and Media Authority. By comparison, the Radiocommunications (Receiver Licence Tax) Act 1983 provides the licensees of a receiver licence of more than 12 months duration with a choice in when tax is imposed – either a full amount on their licence being issued, or annual instalments.

Recognising that long-term, high-value receiver licences would become more available under the Government's reforms, the amendments in this Bill will enable ACMA to determine whether the holder of specified classes of receiver licences pay tax upfront or in annual instalments. This will include ACMA being able to specify that all licences for a particular use or of a particular duration need to pay upfront, consistent with general practice for spectrum licences, to avoid causing a distortion in the demand for different licence types.

These amendments will only apply to licences issued after commencement, and will not make changes to how the amount of tax that licensees pay for their licence will be calculated.

The amendments in this Bill will support the reforms of spectrum management proposed by the Radiocommunications Legislation Amendment (Reform and Modernisation) Bill 2020, which are designed to provide a more flexible regulatory framework to support the adoption of new technologies.

RADIOCOMMUNICATIONS (TRANSMITTER LICENCE TAX) AMENDMENT BILL 2020

Today I am pleased to be introducing this supporting bill, the Radiocommunications (Transmitter Licence Tax) Amendment Bill 2020, as part of the Government's spectrum management reforms.

This Bill is a companion Bill to the Radiocommunications Legislation Amendment (Reform and Modernisation) Bill 2020. That Bill extends the maximum licence terms for apparatus licences (including transmitter licences) and spectrum licences to 20 years.

As a consequence of those amendments, this Bill seeks to align some of the arrangements for the payments licensees make for the value of the spectrum that they use under their licences. The Radiocommunications (Transmitter Licence Tax) Act 1983 provides the licensees of a transmitter licence of more than 12 months duration with a choice in whether tax is imposed as a full amount on their licence being issued, or as annual instalment payments. In comparison, the arrangements for spectrum licensees include paying a spectrum access charge at a time specified by the Australian Communications and Media Authority.

Recognising that long-term, high-value transmitter licences would become more available under the Government's spectrum management reforms, the amendments in this Bill will enable ACMA to determine whether the holder of specified classes of transmitter licences pay tax upfront or in annual instalments. This will include ACMA being able to specify that all licences for a particular use or of a particular duration need to pay upfront, consistent with general practice for spectrum licences, to avoid causing a distortion in the demand for different licence types.

These amendments will only apply to licences issued after commencement, and will not make changes to how the amount of tax that licensees pay for their licence will be calculated.

The amendments in this Bill will support the reforms of spectrum management proposed by the Radiocommunications Legislation Amendment (Reform and Modernisation) Bill 2020, to provide for a more flexible framework for a longer-term investment horizon.

Debate adjourned.