Ted O'Brien (Fairfax, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Hansard source

There was a day when telecommunications was considered a luxury. Certainly, in the modern world, it is an essential service. Indeed, it underpins everything we do—from the lives we live to the work we do, what we learn and how we engage with each other. That gives rise, of course, to the importance of consumer protections.

When it comes to the Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025 that is before the House today, it's noteworthy that this bill will create a register of carriage service providers, enable the direct enforcement of industry codes, amend the existing two-step process for the application of penalty amounts for infringement notices and increase the maximum penalty amount for breaches of the codes from $250,000 to $10 million. Given the bill strengthens consumer protections, streamlines enforcement and provides greater visibility of operators in the market, it will receive support from the coalition.

The new carriage service provider registration scheme will ensure that all telecommunication providers apply to the Australian Communications and Media Authority for registration to operate in Australia. This will provide the ACMA, as the regulator for the sector, with visibility of all operators in the Australian market, of which there are estimated to be 1,500. This will ensure ACMA is able to educate, monitor and, where necessary, take swift enforcement action for breaches of any codes or standards. Should providers breach their obligations or pose a risk to consumers, ACMA will have the ability to cancel their registration to operate. These arrangements are similar to those in the energy sector, where the Australian Energy Regulator, the AER, has the power to exclude operators from the market where there is a risk to consumers.

As part of the scheme, providers will also be required to report all cybersecurity incidents. Where there is a cyber breach, the appropriate bodies must be notified and remedial action must be taken and taken swiftly. Full visibility of all telecommunications operators will also ensure ACMA can target compliance and enforcement activities and, where necessary, take appropriate action.

Schedule 2 of the bill amends the Telecommunications Act to make registered industry codes directly enforceable by ACMA. The telecommunications industry has a co-regulation model by which industry is responsible for the preparation of codes, which are then submitted to ACMA for registration. Once a code is registered with ACMA in force, the code must be complied with by the sector.

In practice, what has been established under the act is a two-step enforcement process. If there is a complaint or wrongdoing, or a breach of industry code, ACMA will direct or provide a provider to comply. They will send that direction to the provider, essentially issuing a warning for them to correct their behaviour and do the right thing. Should they not, ACMA's enforcement powers will then become available. This enforcement action can include penalties through the Federal Court, enforceable undertakings or the issuing of an infringement notice.

Currently, part 6 of the act says:

Compliance with an industry code is voluntary unless the ACMA directs a particular participant in the telecommunications industry … to comply with the code.

This phrasing has led to a misconception that compliance with industry codes is voluntary. As the explanatory memorandum to the bill states, while code compliance is technically voluntary, after ACMA issues a direction to comply or a formal warning to a provider, it can then take enforcement action if the provider continues the noncompliance.

Since January 2024, ACMA has issued 19 formal warnings, one remedial direction, 16 directions to comply, four enforceable undertakings and infringement notices totalling close to $16 million. Some of these breaches relate to people's safety, which is of the highest priority. For example, there were seven notices issued to providers in 2024 for breaches of the emergency call database rules. These rules require the telco providers to keep a person's telephone number and address updated so that, when the number calls triple zero, emergency services—police, fire or ambulance—are deployed to the correct address at the first moment. Adherence to this code is vital. People's lives quite literally depend on it.

The requirement to monitor and report suspected scams is another important one. If telcos aren't adhering to the code, the impact on people, financially, psychologically and emotionally, is significant. In 2024, phone scam had the highest overall losses of scam types, with more than $107 million lost by nearly 2,200 people. Since the start of 2024, ACMA has issued 10 directions to comply with reducing scam calls and SMS code, but none of these resulted in a financial penalty to providers, because of the two-step process.

The changes in this bill will strengthen ACMA's powers and the speed at which they can use them, to provide even greater protection for consumers and ensure we have responsible operators in our telecommunications sector. The bill will make compliance with industry codes mandatory, removing the requirement for a two-step process before ACMA can take enforcement action. There'll be no more warning shots, ensuring more immediate action can be taken for breaches of the code. I will note, given much scrutiny of the telecommunications sector over recent years, that this is a change the sector itself has called for. Notably, the Australian Telecommunications Alliance, which represents the telecommunications industry, has been calling for these reforms since 2023.

Finally, the bill will increase penalties issued to providers for breaches of industry codes and standards from $250,000 to $10 million. The revised penalty framework will allow penalties to be based on the value of the benefit obtained from the breach of conduct or the turnover of the provider, allowing for penalties greater than $10 million should it be deemed appropriate.

The Australian Communications Consumer Action Network, the Telecommunications Industry Ombudsman and the Australian Competition and Consumer Commission have long advocated for civil penalty reform to ensure penalties for breaches of codes and standards reflect the severity of the breach and the harm caused. The increase in penalties will address this and align the telecommunications penalty framework to those in the energy and banking sectors, competition legislation and Australian consumer law. Thus, the coalition will support the bill. At the end of the day, it will strengthen consumer protection, streamline enforcement activity and provide greater visibility of operators in the market.

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