House debates

Thursday, 28 August 2025

Bills

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

9:01 am

Photo of Anika WellsAnika Wells (Lilley, Australian Labor Party, Minister for Sport) Share this | Hansard source

I move:

That this bill be now read a second time.

The Albanese government is committed to keeping Australians connected, no matter where they live—from the Pilbara to Palm Island, from Broome to Bendigo.

We believe in a simple principle: no one held back, no one left behind.

To do that, we must crack down on the mistreatment of telecommunications customers.

We know in 2025, connectivity is not a nice-to-have. It is a necessity.

It is how people get to work.

It is how kids keep up with their learning. It is how people can work from home.

It is how older Australians stay in touch with loved ones. And in an emergency—it is how Australians stay safe.

That's why the Albanese government is continuing to invest in services and in infrastructure.

We are investing $1.1 billion in the Better Connectivity Plan for Regional and Rural Australia which ensures remote, rural and regional Australians benefit from advances in connectivity—with a pipeline of over 500 projects now funded.

And this will be complemented by the agreement signed between NBN and Amazon to deliver city broadband speeds to the bush through low-Earth-orbit satellites.

We are determined for Australia to be the most connected continent—for telecommunications to be an opportunity equaliser—rather than meander with a coalition copper approach that creates metro haves and rural have-nots.

We are determined for Australians to be protected rather than exploited through telecommunications.

That's why earlier this year the Assistant Minister for Social Services and I visited Juno, a respite centre for women experiencing violence to announce a mandatory telecommunications industry standard.

The domestic, family and sexual violence industry standard makes lasting change for many victims-survivors who until now were forced to engage their abusers to call family, friends and even triple 0.

This reform means victims-survivors will never be asked to engage with the alleged perpetrator to resolve their telecommunications issues.

Telecommunications are critical to our everyday lives, so it's vital providers meet community expectations in delivering services—or be held to account by the industry regulator, the Australian Communications and Media Authority, or ACMA, if they do not.

That's what this bill is about.

We want to see telecommunications companies do better.

Earlier this year, the Federal Court ruled that Telstra made false or misleading representations relating to the upload speed of residential broadband internet services to nearly 9,000 of its Belong customers in 2020, off the back of court action by the ACCC.

In June, Optus Mobile acknowledged it engaged in unconscionable conduct when selling telecommunications goods and services to hundreds of consumers, including those experiencing disadvantage and hardship, after court action brought by the ACCC.

At the time, the ACCC deputy chair said:

The conduct, which included selling inappropriate, unwanted or unaffordable mobiles and phone plans to people who are vulnerable or experiencing disadvantage is simply unacceptable.

These are just a couple of recent examples, but they are illustrative of the need to drive higher standards in this industry.

That is why we are bringing this bill to parliament—to strengthen the safeguards that protect consumers.

It ensures providers meet community expectations—this is acting in good faith, providing relievable service and supporting customers.

But, if that doesn't happen, then Australians need an industry regulator they can rely on that has the power to hold telecommunications companies accountable.

Stronger penalties

This bill will deliver significantly stronger penalties for misconduct.

Right now, under the current system, the maximum fine for breaching industry codes and standards is $250,000.

This bill changes that.

It raises the maximum penalty by 40 times: up to $10 million.

It was $250,000; it will be $10 million.

And, in serious cases, it allows penalties to be calculated as three times the benefit obtained from the breach, or 30 per cent of the company's turnover.

This brings telecommunications in line with other sectors like banking, energy and consumer law.

The bill also expands and clarifies the Minister for Communications's authority to increase infringement notice penalties that ACMA can issue for breaches of industry codes, industry standards and service provider determinations.

These stronger penalties mean no company will be able to treat fines as the cost of doing business, because there are and continue to be real-world examples of real-world harm, like the use of high-pressure sales tactics, misleading representations of service performance or inclusions, unfair billing practices and contract terms or targeting vulnerable customers creating further financial hardship.

Through this bill the Albanese government sends a signal. Companies that engage in practices that put profits before people will be held to account financially.

It helps our mission for no-one to be held back and no-one to be left behind.

Faster enforcement

This bill will also deliver faster enforcement of industry codes.

Until now, ACMA has been unable to take direct enforcement action against breaches of industry codes, no matter how serious, without issuing a direction to comply first, and then ACMA can only act if the noncompliance continues.

This delays ACMA in taking action and can leave Australians exposed.

This bill cuts through that. We are removing the two-step process, making industry codes directly enforceable.

Greater visibility

This bill also enables greater visibility of the carrier service market and carrier service providers operating in it.

A carriage service provider is any provider who uses telecommunications carrier facilities—for example, transmission infrastructure, cabling or wireless networks—to supply telecommunications services like mobile phone or internet services to the public.

The bill establishes a carriage service provider registration scheme. This reform gives ACMA visibility of who is operating in the market and the ability to prevent or remove providers who pose an unacceptable risk to consumers or cause consumer harm.

It means everyone is playing by the same rules and those who do the right thing are not undermined by dodgy operators.

Supporting fairness and trust

Together, these reforms create a modern compliance framework that is fit for purpose.

They support fairness by making sure that consumers are protected.

They build trust by ensuring ACMA has the tools it needs to take quick action. They strengthen the industry by setting clear, consistent standards.

Listening to stakeholders

These reforms have been developed in consultation with industry, regulators and consumer advocates.

I would like to thank the Australian Telecommunications Alliance, the Australian Communications and Media Authority, the Australian Competition and Consumer Commission, the Australian Communications Consumer Action Network and the Telecommunications Industry Ombudsman for their ongoing engagement and support of these reforms, including their feedback following the previous introduction of the bill earlier in the year.

The feedback from these stakeholders has meant we have improved the bill, providing clarity on consumer safeguards and processes for all parties.

Conclusion

This beautiful country we call home is intangibly unique.

Australia is the world's largest island and the sixth-biggest country on Earth.

Yet this vast nation holds just 3½ people per square kilometre, one of the world's lowest population densities.

This combination ensures connection is an evergreen challenge.

This bill helps meet that challenge, helps keep Australians connected by cracking down on telecommunications providers who mistreat customers.

It will deliver the community the services they need and deserve through a system that is fair and accountable.

So no-one is held back and no-one is left behind. I commend the bill to the House.

Debate adjourned.

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