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2022-2023-2024-2025
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
TELECOMMUNICATIONS AMENDMENT (ENHANCING CONSUMER
SAFEGUARDS) BILL 2025
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Communications the Hon Michelle Rowland MP)
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TELECOMMUNICATIONS AMENDMENT (ENHANCING CONSUMER
SAFEGUARDS) BILL 2025
OUTLINE
Overview of the Bill
The purpose of the Bill is to amend the Telecommunications Act 1997 ('Tel Act') to create a
register of carriage service providers, enable the direct enforcement of industry codes, and
amend existing arrangements regarding the application of penalty amounts for infringement
notices and civil penalties.
Schedule 1 - Registration of carriage service providers
This Schedule establishes a Carriage Service Provider (CSP) registration scheme within Part 4
of the Tel Act to increase visibility of CSPs operating in the market and enable the Australian
Communications and Media Authority (ACMA) to stop CSPs operating in the market who
pose unacceptable risk to consumers, or cause significant consumer harm.
Schedule 2 - Mandatory compliance with industry codes
This schedule amends Part 6 of the Tel Act to make registered industry codes directly
enforceable by the ACMA. This would allow the ACMA to take immediate and appropriate
action to address consumer detriment, and would incentivise industry compliance.
Schedule 3 - Pecuniary penalties
This Schedule amends Part 31 of the Tel Act to increase the maximum general civil penalty
for breaches of industry codes and industry standards from $250,000 to 30,300 penalty units
($9.999 million at the time of drafting) to align with penalties available for breaches of
service provider determinations prior to the amendments ($10 million). The penalty amount
for industry codes, industry standards, and service provider determinations will be aligned to
30,300 penalty units. The Schedule will also modernise the penalty framework for these
instruments to allow penalties based on the value of the benefit obtained from the conduct or
the turnover of the relevant provider - allowing for penalties greater than $9.999 million. This
penalty framework will incentivise industry compliance and better aligns with those in other
relevant sectors like energy and banking, and under the Australian Consumer Law.
Schedule 4 - Infringement notices given to bodies corporate
This schedule amends Part 31B of the Tel Act to expand and clarify the authority of the
Minister for Communications to increase any infringement notice penalty the ACMA can
issue for breaches of telecommunications rules.
Context of the Bill
Schedule 1 - Registration of carriage service providers
There is currently no comprehensive list of CSPs, which hampers the ACMA's efforts to
proactively educate CSPs about their obligations and target compliance and enforcement
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activity. Establishing a CSP registration scheme will increase visibility of the market and
provide the ACMA (and other Government agencies) the ability to educate providers,
streamline complaints and compliance processes, and create better overall market
accountability.
The amendments to the Tel Act will empower the ACMA to stop CSPs operating in the
market who pose unacceptable risk to consumers, or cause significant consumer harm.
This will provide a deterrent for significant non-compliance and will increase trust by
consumers in registered CSPs, including new or smaller CSPs.
In the energy sector, the Australian Energy Regulator has the power to exclude energy
retailers from the market and has used this power to quickly prevent and stop consumer harm.
The ACMA's power to exclude CSPs from the market is expected to be used as a measure of
last resort, with suitable arrangements for review of decisions, avenues for re-registration, and
maintaining connectivity for impacted consumers.
Amendments to Part 4 of the Tel Act set out the CSP registration framework. The framework
can be adjusted over time through the use of appropriate subordinate legislation.
Schedule 2 - Mandatory compliance with industry codes
The ACMA currently cannot take direct enforcement action against breaches of the industry
codes it has registered under Part 6 of the Tel Act, no matter how significant. Under the
Tel Act, compliance with industry codes is initially technically voluntary. If a breach is found,
the ACMA can direct a provider to comply with the code or issue a formal warning. The
ACMA can only take stronger enforcement action if the provider continues its non-
compliance, that is, it fails to observe the ACMA's direction to comply. Stronger action
includes seeking pecuniary penalties through the Federal Court, enforceable undertakings, and
issuing an infringement notice. The two-step enforcement process is of particular concern in
the context of retail level consumer safeguards, given many key safeguards are contained in
the telecommunications consumer protections (TCP) code. It is also a concern in relation to
scams, noting the protections contained in the Reducing Scam Calls and Scam SMS Code.
Amendments to Part 6 of the Tel Act make compliance with industry codes mandatory and
remove the need for the ACMA to direct a particular participant to comply with the code in
the first instance.
Schedule 3 - Pecuniary penalties
Currently, maximum civil penalties differ greatly across the Tel Act. This is a problem
because industry codes, industry standards and service provider determinations are used
interchangeably to develop consumer protection rules. As a result, breaches of similar
magnitude and importance can result in very different penalties.
Non-industry stakeholders have increasingly advocated for civil penalty reform in the
telecommunications sector. This includes commentary by consumer advocate groups, the
ACMA, the Telecommunications Industry Ombudsman (TIO), and the Australian
Competition and Consumer Commission (ACCC) that the penalties for telecommunications
industry codes and standards do not reflect the severity of the breach and harm caused.
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Schedule 4 - Infringement notices given to bodies corporate
Part 31B of the Tel Act enables authorised ACMA officers to issue an infringement
notice where they have reasonable grounds to believe there may have been contraventions of
civil penalty provisions in the Tel Act, and by extension, the Telecommunications (Consumer
Protection and Service Standards) Act 1999 (TCPSS Act) and Chapter 5 of the
Telecommunications (Interception and Access) Act 1979.
Part 31B enables the Minister for Communications to increase infringement notice penalty
amounts via a determination. There has been some confusion about the authority of the
Minister for Communications to increase penalties for breaches of various provisions.
However, on current drafting, Part 31B only allows the Minister for Communications to
increase infringement notice penalties for breaches of general carrier licence conditions and
carriage service provider rules (section 68 or 101 of the Tel Act) but not for other specific
civil penalty provisions in the Tel Act. In practice, this means the Minister for
Communications can increase infringement notice penalties for breaches of a large number of
obligations (including relatively minor obligations) though not for certain key obligations,
including breaches of industry standards. This means non-compliance is unable to be
penalised commensurate to the breach.
Amendments to Part 31B allow the Minister for Communications to increase infringement
notice penalty amounts for any breach where the ACMA can already issue an infringement
notice. This creates a more clear and consistent regulatory framework. The amendments do
not alter the existing infringement notice regime more broadly, for example, the amendments
do not expand the contraventions for which the ACMA can issue an infringement notice.
Financial impact statement
Nil
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
TELECOMMUNICATIONS AMENDMENT (ENHANCING CONSUMER
SAFEGUARDS) BILL 2025
This Bill 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 Bill/Legislative Instrument
The purpose of the Bill is to amend the Telecommunications Act 1997 to create a register of
carriage service providers, enable the direct enforcement of industry codes, and amend
existing arrangements regarding the application of penalty amounts for infringement notices
and civil penalties. The overall intention is to improve compliance and enforcement of
telecommunications consumer protection rules for the benefit of consumers.
Human rights implications
The Bill does not directly engage any of the applicable rights or freedoms.
Conclusion
This Bill 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.
Minister for Communications
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NOTES ON CLAUSES
Abbreviations used in Notes on Clauses
Term Meaning
The Bill Telecommunications Legislation
Amendment (Enhancing Consumer
Safeguards) Bill 2025
The ACMA The Australian Communications and Media
Authority
Tel Act Telecommunications Act 1997
TCPSS Act Telecommunications (Consumer Protection
and Service Standards) Act 1999
Clause 1: Short Title
This clause specifies that the Act is the Telecommunications Amendment (Enhancing
Consumer Safeguards) Act 2025.
Clause 2: Commencement
Clause 2 specifies commencement dates for Schedules in the Bill, which differ across the
Schedules as outlined in the table included in the Bill.
Clause 3: Schedules
Clause 3 provides that each Act that is specified in a Schedule to the Bill is amended or
repealed as set out in the applicable items in the Schedule concerned, and any other item in a
Schedule has effect according to its terms. There are four Schedules to the Bill.
SCHEDULE 1 - Registration of carriage service providers
Schedule 1 will amend the Tel Act by creating a new division under Part 4 (Service
Providers) which establishes a CSP registration scheme.
Item 1 - Section 7
Inserts definitions into section 7 of the Tel Act for the Attorney-General's Department and a
Carriage Service Provider Register.
Item 2 - Section 7
Item 2 repeals and substitutes the definition of a contracted service provider to reference the
CSP register.
Item 3 - Section 7
Item 3 inserts a definition for eligible carriage service provider, aligning with the definition
set out in the TCPSS Act for consistency. Item 3 also inserts a definition for a registered
carriage service provider and a registerable carriage service provider.
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Item 4 - Section 85
Item 4 inserts new wording into section 85 of the Tel Act for the purposes of outlining that
registrable CSPs must not provide listed carriage services unless they are registered under
Division 3A, and that carriers and wholesale CSPs must not provide listed carriage services to
registerable CSPs who are not registered. These obligations seek to ensure compliance with
the registration framework, by incentivising relevant CSPs to register and preventing them
from providing services to consumers if they are not registered.
Item 5 - Division 3A
Item 5 inserts a new division (Division 3A - Registration of Carriage Service Providers) after
Division 3 of Part 4. This division sets out the overall framework to establish and maintain a
CSP register, including the overarching scheme, key roles and responsibilities.
The framework provides flexibility for the Minister to define and shape elements of the CSP
registration framework over time and to delegate certain functions and powers to the ACMA.
Simultaneously the ACMA is also provided with powers, for example, to determine the
specific form of application required for registration. This allows the framework to be adapted
and adjusted as needed over time, to address practical issues that may arise and noting the
dynamic and evolving nature of the telecommunications market. However, it should be noted
that the Bill provides all necessary components for the scheme on its face and does not require
additional instruments to be put in place in order for the CSP registration scheme to function.
Section 96A sets out requirements to ensure registerable CSPs are only supplying services to
the public if they are registered. The section allows the Minister to declare a CSP to be a
registerable CSP, and a specific class of CSP to be registerable CSPs. This enables the
Minister to expand the scope of the scheme over time beyond eligible CSPs. The section also
allows the Minister to declare that a specified eligible CSP is not a registerable CSP and that
members of a specified class of eligible CSP are not registerable CSPs. Declarations made
under subsections 96A(3) and (5) are notifiable instruments, which is appropriate given they
would be administrative in character.
Section 96B sets out requirements to ensure a Carriers and wholesale CSPs do not supply or
offer to supply a carriage service to a registerable CSP if they are not registered, and carriage
services are only supplied to relevant registered CSPs.
Section 96C sets out the process by which a registerable CSP may apply to the ACMA to be
registered. The section provides the ACMA with flexibility to prescribe the form in which
registration applications are submitted. The Minister may also determine further requirements
deemed necessary for the effectiveness of the process.
Section 96D allows for the ACMA to request an applicant provide further information about
their application to inform the ACMA's considerations. The ACMA may refuse to consider
the application until the applicant provides the requested information.
Section 96E provides the ACMA the ability to both approve or refuse an application received
under 96C. The section outlines that the ACMA must register the applicant unless the ACMA
is satisfied that a ground for refusal set out in subsection (3) exists - ensuring refusal of an
application is made on common, specified and transparent grounds. The Bill also provides the
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Minister the ability to prescribe more circumstances for which an application can be refused
over time. The ACMA will need to provide the applicant with a written notice of the decision
to approve or refuse an application and, if an application is refused, the notice must include
the reason for the decision. The section specifies that the registration of a registered CSP is
valid for a period of 1 year unless determined otherwise by the Minister.
Section 96F provides the ACMA the ability to impose conditions on the registration of a
registered CSP if the ACMA believes that the condition is reasonably necessary to promote
compliance. Additionally, the section outlines that standard conditions for all registered CSPs
are that they must notify the ACMA of any changes to matters that are determined by the
Minister; and that registered CSPs comply with the Telecommunications Industry
Ombudsman scheme if they are a member of that scheme.
Section 96G allows a registered CSP to apply to the ACMA to renew their registration.
The renewal application must also comply with subsection 96C(2) in regard to the form of the
registration.
Section 96H sets out the mechanism by which the ACMA will process and make decisions on
registration renewal applications. The ACMA must renew the application unless it is satisfied
that a ground for refusal as outlined in subsection 96E(3) exists. The ACMA must give
written notice of its decision to renew or refuse the application renewal. If the application is
refused, the ACMA must also outline the reasons for the decision. Following renewal, the
registration is valid for a period of 1 year unless otherwise determined by the Minister.
Section 96J specifies that following the submission of a registration renewal application, the
current registration of a registered CSP will continue to be in force until the provider has been
given notice on the outcome of the renewal application.
Section 96K enables the ACMA to revoke the registration of a carriage service provider. This
is a measure of last resort which the ACMA can only impose after consideration of the
matters prescribed in subsection (2), these matters consider the CSPs compliance history, the
impact on its customers, and the necessity of preventing consumer harm, amongst other
matters. The Minister may also determine additional matters in subsection (2). The ACMA
must consult a Communications Access Coordinator and the Minister before revoking the
registration of a registered CSP and must, as soon as practicable after revoking the
registration of a registered CSP, give notice of the revocation to the provider. Section 96K
also enables the ACMA to impose obligations on a registered CSP that have effect after the
revocation of their registration. A carrier or CSP that has such obligations placed on them
must comply with these obligations.
Section 96L requires the ACMA to notify the provider of the proposal to revoke their
registration, state the reasons for the proposed revocation, and invite the provider to make a
submission to the ACMA outlining why the provider's registration should not be revoked.
This is part of the process to ensure de-registration is a measure of last resort, and that there is
a focus on bringing relevant CSPs into compliance for the benefit of their customers.
Section 96M enables a registered CSP to request the ACMA to revoke their registration and
sets out the process a registered CSP must follow to do so. The ACMA must by written
notice, revoke the registration of the provider and may impose post-revocation obligations on
the registered CSP.
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Section 96N outlines that if the registration of a registered CSP is revoked the provider must
give written notice of the revocation to all customers and make arrangements to transfer the
customers to another registered CSP. These requirements seek to ensure customers remain
prioritised and connected.
Section 96P sets out the requirements for the ACMA to establish and maintain the Carriage
Service Provider Register. The ACMA must establish and maintain the register or arrange for
a contracted service provider to establish and maintain it on behalf of the ACMA. The register
must be kept in electronic form, made publicly available and contain the details of each
registered CSP and any other information determined by the ACMA. Subsection 96P(6)
determines that the register is not a legislative instrument. Subsection 96P(6) is merely
declaratory of the law and not a substantive exemption from the Legislation Act 2003, given
the register would be administrative in character.
Section 96Q sets out the application of the Privacy Act 1988 to a contracted provider
regarding the establishment and maintenance of the register, operation of the register, and
performance of a function or exercise of a power by the contracted service provider.
Section 96R requires the ACMA and the contracted service provider to share the information
they gather in relation to the register with relevant entities unless the information is not
necessary to enable or assist the entity in the performance of its functions or the exercise of its
powers. The Minister is able to specify additional entities the ACMA and contracted service
provider can share information with.
Section 96S specifies that the Minister may delegate their functions and powers to the ACMA
under the Division, for example, if the Minister considers that matters the Minister is
empowered to determine in relation to the register are better decided by the ACMA, for
example, to ensure the efficient operation of the scheme. The Bill precludes the delegation of
the Minister's powers referred to in subsection 96E(4) regarding grounds for the ACMA to
refuse registration; subsection 96K(3) regarding matters to be considered in revoking a
registration; or subsection 96R(7) regarding entities to which the ACMA or contracted service
provider may disclose information. It was determined that it would not be appropriate and
could create real or perceived conflict for these powers to be delegated to the ACMA.
Section 96T ensures the Division has no effect to the extent that its operation would result in
an acquisition of property from a person otherwise than on just terms.
Item 6 - Subclause 2(1) of Schedule 3A
Repeals the definition of Attorney-Generals' Department in subclause 2(1) of Schedule 3A.
Item 7 - after paragraph 1(f) of Schedule 4
Item 7 makes a range of decisions related to the register reviewable: subsection 96E(2) to
refuse an application for registration as a registered CSP; subsection 96F(1) to impose
conditions on the registration of a registerable CSP, subsection 96H(2) to refuse an
application to renew registration as a registered CSP; subsection 96K(1) to revoke the
registration of a registered CSP; subsection 96K(7) to impose obligations on a registered CSP
that have effect after revocation of registration of the provider; subsection 96M(4) to refuse to
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revoke the registration of a registered CSP at the provider's request; and subsection 96M(5) to
impose obligations on a registered CSP that have effect after revocation of registration of the
provider at the provider's request.
Item 8 - Application of amendments
Item 8 specifies that Division 3A of Part 4, as inserted by this Schedule, applies in relation to
carriers and carriage service providers after 6 months, starting on the day this item
commences. As per item 2, this item commences after proclamation or after 12 months in the
absence of a proclamation.
Item 9 - Transitional rules
Item 9 allows the Minister to make rules prescribing matters of transitional nature relating to
the amendments or repeals made by this Schedule and sets out limitations for what the rules
can do. This is necessary considering, for example, the need for the ACMA to manage the
initial registration applications for a considerable number of existing eligible CSPs - with
estimates there may be over 1,500 eligible CSPs.
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SCHEDULE 2 - Mandatory compliance with industry codes
Schedule 2 amends section 121 of the Tel Act to reflect section 128 in order to make
compliance with an industry code mandatory and remove the need for the ACMA to direct a
particular provider to comply with the code in the first instance.
Item 1 - Section 5
Omits the reference to compliance with an industry code being voluntary unless the ACMA
directs a provider to comply with that code.
Item 2 - Section 5
Item 2 adds that compliance with both industry codes and industry standards is mandatory.
Item 3 - Section 106
Omits the reference to compliance with an industry code being voluntary unless the ACMA
directs a provider to comply with that code.
Item 4 - Section 106
Item 4 adds that compliance with both industry codes and industry standards is mandatory.
Item 5 - Section 121 and 121A
Repeals section 121 and substitutes it with a requirement for compliance with registered
industry codes. Breaching this obligation is a civil penalty provision. Section 121A replicates
the existing obligation for the ACMA to consult with the Information Commissioner before
taking enforcement action against the provider.
Item 6 - Paragraph 136(1)(d)
Item 6 omits "section 119; and" and substitutes with "section 119." For grammatical
purposes.
Item 7- Paragraph 136(1)(e)
Item 7 repeals the requirement for the ACMA to include all directions given under the former
arrangements in the register that it maintains.
Item 8 - Paragraph 1(j) of Schedule 4
Repeals paragraph 1(j) of Schedule 4 which made decisions to give or vary a direction or
refuse to revoke a direction under section 102 a reviewable decision of the ACMA.
Item 9 - Application of amendments
Direct enforcement arrangements in section 121 apply from commencement, for existing
registered codes and regardless of when conduct occurred, likewise for section 121A.
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SCHEDULE 3 - Pecuniary penalties
Part 31 of the Tel Act outlines the pecuniary penalties the Federal Court may apply for
contraventions of civil penalty provisions under the Tel Act, and by extension, the TCPSS and
aspects of the Telecommunications (Interception and Access) Act 1979.
Schedule 4 of the Bill amends Part 31 of the Act to adjust and align maximum penalties for
breaches of industry codes, industry standards and service provider determinations to the
greater of 30,300 penalty units ($9.999 million); 3 times the benefit obtained or 30% of the
adjusted turnover of the body corporate during the breach turnover period for the
contravention. This is more consistent with the penalty framework in other relevant sectors
like energy and banking, and under the Australian Consumer Law.
Item 1 - Section 7 - Definitions
Item 1 inserts new definitions for 'adjusted turnover' and 'breach turnover period'. These
definitions are discussed in further detail under Item 4 below.
Item 2 - Before subsection 570(3)
Item 2 inserts 'amount of pecuniary penalty - body corporate' into the top of subsection
570(3) to make it clear that the pecuniary penalties listed in paragraph 570(3) apply to a body
corporate and not an individual.
Item 3 - paragraph 570(3)(a)
Ensures that new penalty arrangements apply to breaches of service provider determinations
and not other service provider rules.
Item 4 - paragraph 570(3)(aaaa)
Specifies that penalty amounts in new subsection 3B will apply to a contravention of civil
penalty provisions identified in new subsection 3A, that is, industry codes, industry standards
and service provider rules.
Item 5 - Subsection 3A and 3B
Item 5 inserts a new paragraph 570(3A) which determines the penalty amounts in
subsection 570(3B) apply to breaches by a body corporate of service provider determinations,
industry codes and industry standards, that is, an amount not more than the greatest of: 30,300
penalty units; 3 times the benefit obtained; or 30% of the adjusted turnover of the body
corporate during the breach turnover period for the contravention.
Currently, civil penalties for breaches of industry codes and industry standards ($250,000) are
not commensurate to the harm caused or high enough to deter non-compliance.
In addition to better incentivising compliance, the new penalty framework more adequately
reflects the telecommunications market and the varying size of the entities engaged in the
market, ranging from small-to-medium businesses to very large corporations. The framework
allows the Federal Court to determine the appropriate penalty amounts imposed on an entity
for a breach. While maximum penalties are suitably high, the Court has flexibility around the
amount to be imposed and the new framework allows penalties to be scaled according to the
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value of the benefit obtained from the breach and size of the offending entity. This framework
aligns with other sectoral penalty frameworks such as those that apply in energy and banking.
The approach taken to determine the penalties is in line with the Guide to Framing
Commonwealth Offences, Infringement Notices and Enforcement Powers as it aims to provide
an effective deterrent to the commission of the offence and allows the courts to determine a
penalty amount that reflects the seriousness of the offence within the relevant legislative
scheme.
The proposed framework of enabling penalties to be scaled according to the size of entity
flows through to adjustments made to subsection 572G(2) under Schedule 4, that is, allowing
the Minister to make a determination for different infringement notice penalty amounts to be
issued by the ACMA in relation to contraventions by different classes of bodies corporate.
A new subsection 570(3C) is inserted to clarify the meaning of adjusted turnover and new
subsection 570(3E) has been inserted to clarify the meaning of breach turnover period.
Item 6 - Application of amendments
Ensures the new penalties apply prospectively, to conduct after commencement.
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SCHEDULE 4 - Infringement notices given to bodies corporate
Schedule 4 amends Part 31B of the Tel Act to allow the Minister for Communications to
increase infringement notice penalty amounts for any breach where the ACMA can issue an
infringement notice.
Item 1 - Paragraph 572G(2)(a)
Item 1 omits the reference to "section 68 or 101" and substitutes "a particular civil penalty
provision". This removes the current limitation in Part 31B that only allows the Minister for
Communications to increase infringement notice penalties relating to breaches of general
carrier licence conditions and service provider rules.
Item 2 - After subsection 572G(2)
Allows the Minister for Communications to apply different increased penalties to different
classes of bodies corporate, for example, larger penalties to larger providers and smaller
penalties to smaller providers.
Item 3 - Subsection 572G(3)
Item 3 repeals and replaces subsection 532G(3) to limit the extent to which the Minister for
Communications can increase infringement notice penalties to a proportion of the pecuniary
amount a court could apply in relation to the relevant civil penalty provision. This better
reflects norms regarding the application of infringement notice penalties in Commonwealth
Laws, and is a significant reduction from the current cap of 18,000 penalty units currently
within Part 31B. Therefore, while the amendments expand the range of contraventions for
which the Minister can increase infringement notice penalties, in the process of bringing
clarity and consistency to those arrangements, the amendments simultaneously reduce the
amount that can be increased to below that originally specified by the Parliament on
introduction of the infringement notice framework.
Item 4 - Application of amendments
Ensures that the amendments apply prospectively, in relation to an infringement notice given
for conduct that occurs after commencement.
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