House debates
Thursday, 4 September 2025
Bills
Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025; Second Reading
12:34 pm
Trish Cook (Bullwinkel, Australian Labor Party) Share this | Hansard source
I rise today to speak on a matter which is critical to the lives of every single Australian, and it's a matter that goes directly to the heart of our government's values of fairness, accountability and trust. I am speaking in strong support of the Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025. Enhancing consumer safeguards—that's what it's all about.
As the federal member for Bullwinkel, I represent an electorate that stretches from the periurban fringes of Perth to the wheat belt, where, every single day, our families, businesses and emergency services rely on telecommunications to function. In today's world, connectivity is not a luxury; it's the lifeblood of our communities. It supports our kids' education, it enables small businesses to trade, and it connects us with our loved ones, especially in times of crisis. Australians deserve a telecommunications system that is fair, accountable and, most of all, trustworthy. For too long there have been many poor practices in the industry. This bill changes that. It's a comprehensive package of reforms that will equip the Australian Communications and Media Authority, ACMA, with the modern, effective tools it needs to protect Australian consumers from poor and harmful practices.
The core of this bill can be distilled into three key reforms, and I wish to speak to each of them today. The first reform is that we are increasing maximum civil penalties. In the current framework, the maximum civil penalty for a serious breach of industry codes and standards is $250,000. For a multinational corporation generating billions of dollars in revenue, a quarter-of-a-million-dollar fine is simply a slap on the wrist. It is, as my colleagues have also said, simply a cost of doing business. It is an amount that does not deter harmful practices. It sends a message that it's more profitable to break the rules and pay the fine than it is to do the right thing by your customers. This is fundamentally wrong, and it erodes the trust that Australians place in their service providers. This bill dramatically changes that. It amends the Telecommunications Act to increase the maximum general civil penalty for breaches of industrial codes and standards to 30,300 penalty units, which, at the time of drafting, is just shy of $10 million. This is a 40-fold increase in penalties—a powerful statement that this government is serious about consumer protection.
But we go even further. The bill modernises the penalty framework to give the flexibility for fines to be based on the benefit gained from such conduct—up to 30 per cent of the relevant provider's turnover. This means that, for a company with a very high turnover, the penalty can and should be significantly more than $10 million. This penalty framework aligns our telecommunications sector with standards that we see in other industries, like energy and banking, as well as the Australian Consumer Law. This is about creating a level playing field, where the penalty for the breach is truly proportionate to the harm caused and where no company, no matter how large, can treat consumer protection as an optional extra. It ensures that the Federal Court can impose a penalty that is a genuine deterrent. Effectively, it strongly encourages companies to prioritise ethical conduct over a quick profit.
The second crucial reform of this bill is the establishment of a carriage service provider, or CSP, registration scheme. This was a longstanding issue for the previous Labor and coalition governments, and this lack of visibility is a black hole for regulators. The limited visibility of the carriage service provider has hampered ACMA's ability to actively educate providers on their obligations and to target compliance efforts. This bill changes that. By establishing a CSP registration scheme, we will increase the visibility of the market and give ACMA and other government agencies the ability to streamline complaints and compliance processes. It will provide a clear line of sight, ensuring that every provider is known and accountable. This means that dodgy providers will no longer be able to operate in the shadows, preying on consumers without being held to account.
It also introduces a powerful deterrent. ACMA will be empowered to stop CSPs from operating in the market if they pose an unacceptable risk to consumers or cause significant consumer harm. This power will be used as a last resort, with suitable checks and balances in place, but it provides the regulator with the necessary authority to protect consumers from the worst actors in the industry. It means consumers can have greater confidence in the providers that they choose, knowing there is a system in place to ensure that they are held to account. This is a reform that will incentivise better behaviour and weed out those that are doing the wrong thing.
This may sound like a technical change, but in fact the impact is profound. Under the current legislation, even if a telco is caught red-handed breaching a code, no matter how egregious the breach, ACMA can only issue a direction for them to comply with the code. It is only if the provider then fails to follow that direction that ACMA can take stronger enforcement action. This bill removes that clunky and time-consuming two-step process. It makes compliance with these codes mandatory from the moment they are registered. This gives ACMA the ability to take immediate and decisive enforcement action, providing a stronger incentive for industry compliance and ensuring that consumers are protected without delay.
These are not standalone measures. The bill is a vital piece of our government's broader consumer protection agenda. Since coming to office, we have already introduced new industry standards to support consumers experiencing financial hardship, and we just saw recently the implementation of a new standard that requires telecommunications companies to support and assist consumers experiencing domestic, sexual and family violence. We also amended the Competition and Consumer Act earlier this year to introduce consistent obligations on telcos, banks and digital platforms to prevent and disrupt scams. This bill is a crucial pillar in that ongoing work.
As the member for Bullwinkel, I know the important of connectivity, not just for consumer protection but for the economic and social wellbeing of our community. This is why the Albanese Labor government is also delivering historic investment in regional connectivity. A large part of my seat is considered regional. The $55 million Mobile Black Spot Program, which had applications close this April, will provide resilient mobile coverage in disaster-prone areas, and certainly Bullwinkel is a disaster-prone area with regard to bushfires. The $50 million Regional Roads Australia Mobile Program pilot programs, which also include an $8 million allocation for Western Australia, will test new solutions to increase mobile coverage on our regional highways and major roads, improving safety and connection. And, of course, round 3 of the Regional Connectivity Program awarded just over $115 million towards 74 projects, which also included a dedicated Central Australia stream to improve connectivity for First Nations communities.
This bill is a testament to the Albanese Labor government's commitment to a fair, accountable and trusted telecommunications system. It is a win for consumers, a win for integrity and a win for a more connected Australia. I commend the bill to the House.
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