Chapter 1Introduction
1.1On 21 November 2024, the Senate referred the provisions of the National Broadband Network (Companies Amendment (Commitment to Public Ownership) Bill 2024 (the bill) to the Environment and Communications Legislation Committee for report by 6 February 2025.
Purpose of the bill
1.2The purpose of the bill is 'to recognise in legislation the government's policy that NBN Co Limited (NBNCo), the company that operates the National Broadband Network (NBN), remains in public ownership'.
1.3The Hon Michelle Rowland MP, Minister for Communications (the minister) explained upon the bill’s introduction that it proposed amendments to the National Broadband Network Companies Act 2011 (NBN Co Act) to remove existing provisions that would otherwise enable privatisation of NBN Co:
Through this bill, the [NBN Act] will be amended to remove conditions enabling a future government to privatise NBN Co. These changes reinforce in legislation the government's commitment.
The bill provides certainty to stakeholders, including broadband consumers, the wider telecommunications industry, broadband retailers, and NBN Co, that the Commonwealth will continue to retain ownership of NBN Co. This certainty supports the government commitment for NBN Co to provide high-speed and reliable broadband connectivity for Australians.
1.4Minister Rowland stated that maintaining the public ownership of NBN Co is intended to provide the company with 'the certainty necessary for its planning and operational decisions'. She indicated that it is also aimed at maximising the economic and social benefits of the NBN and encouraging investment to 'keep prices affordable and connect Australians in regional and remote Australia, including First Nations communities'.
Background
1.5On 7 April 2009, the government announced 'the establishment of a new company to build and operate a new super fast National Broadband Network'. The government was to be the major shareholder of NBNCo, however, private sector investment was also anticipated:
The Government will make an initial investment in this company but intends to sell down its interest in the company within 5 years after the network is built and fully operational, consistent with market conditions, and national and identity security considerations.
This company jointly owned by the Government and the private sector will invest up to $43 billion over 8 years to build the national broadband network.
The Government’s investment in the company will be funded through the Building Australia Fund and the issuance of Aussie Infrastructure Bonds (AIBs), which will provide an opportunity for households and institutions to invest in the national broadband network.
1.6On 25 November 2010, the government introduced the National Broadband Network Companies Bill 2010 to the Parliament. Then Minister for Infrastructure and Transport, the Hon Anthony Albanese MP explained that the bill:
… sets out arrangements for the eventual sale of the Commonwealth’s stake in the company once the NBN rollout is complete, including provisions for independent and parliamentary reviews prior to any privatisation, and for the parliament to have the final say on the sale. The bill also creates a power for the Governor-General to make regulations concerning future private ownership and control of NBN Co. Ltd, and establishes other relevant reporting, governance and enforcement mechanisms.
1.7Minister Albanese also explained that it was no longer intended that NBN Co be privatised after five years but instead left to the discretion of future governments:
Taking into account the recommendations of the implementation study on the NBN, the Commonwealth will retain full ownership of NBN Co. Ltd until the rollout of the NBN is complete. This will ensure that during the rollout NBN Co. Ltd remains focused on achieving the government’s policy aims, and not on the different risks and rewards that private sector equity investors would require…
There is no longer a requirement that NBN Co. Ltd must be sold within five years of it being declared built and fully operational. Rather the time frame for any sale is left to the judgment of the government and parliament of the day, enabling due regard to the role the NBN is playing, market conditions and any other relevant factors.
1.8The NBN Co Act described four preconditions for privatisation of NBN Co:
a declaration by the Communications Minister that the NBN should be treated as built and fully operational;
tabling of a Productivity Commission report on the regulatory framework for the NBN and the impact of a sale of NBN Co on:
- future Commonwealth budgets;
- the supply of affordable broadband carriage services;
- the supply of affordable other carriage services;
- equity and social inclusion; and
- competition in telecommunications markets;
examination of the Productivity Commission's report by a Parliamentary Joint Committee on the Ownership of NBN Co; and
a declaration by the Finance Minister that conditions are suitable for entering into and carrying out an NBN Co sale scheme.
1.9In November 2020, NBN Co provided then Minister for Communications, Cyber Safety and the Arts, the Hon Paul Fletcher MP, with a report on the extent to which the NBN was built and fully operational.
1.10On 11 December 2020, Minister Fletcher declared that the NBN should be 'treated as built and fully operational'. The declaration, made under section 48 of the NBN Co Act, met the first of the four steps required before NBN Co could be privatised, but did not in itself require that the additional steps be taken.
1.11In December 2022, the Minister for Finance and the Minister for Communications issued a new Statement of Expectations for NBN Co. The statement explained that the 'government will keep NBN Co in public hands for the foreseeable future to provide the Company with the certainty needed to continue delivering improvements to the network while keeping prices affordable'.
1.12Upon its introduction in 2024, Minster Rowland noted that the bill strengthens the government's commitment made in the 2022 Statement of Expectations by making it part of the legislative framework.
1.13On 13 January 2025, the government announced that it would fund the remaining national fibre-to-the-node (FTTN) upgrade of the NBN via an equity investment of up to $3 billion, with NBN Co to contribute more than $800million to the project. The new FTTN upgrades are to deliver access to higher internet speeds for around 622,000 additional premises by 2030. The government anticipates that, when the upgrade program is complete, more than 94 per cent of premises on the fixed line NBN network, representing over 11million homes and businesses, will have access to connections enabling speeds over 1 Gbps. The government cited modelling by Accenture to suggest that the FTTN upgrade program would stimulate a $10.4billion cumulative increase in GDP over 10 years .
Financial impact statement
1.14According to the explanatory memorandum, the bill will have no financial impact.
Human rights compatibility
1.15According to the explanatory memorandum, the bill is compatible with human rights, as it does not engage any of the applicable rights or freedoms.
1.16The Parliamentary Joint Standing Committee on Human Rights made no comment on the bill.
Scrutiny of Bills Committee examination
1.17The Scrutiny of Bills Committee made no comment in relation to the bill.
Conduct of the inquiry
1.18In accordance with its usual practice, the committee advertised the inquiry on its website and wrote to relevant organisations inviting written submissions by 16 December 2024.
1.19The committee published seven submissions which are listed in Appendix1 and available on the committee's website.
Acknowledgements
1.20The committee thanks the organisations and individuals that made written submissions.